The Private Sector's Foreign Debt Reached a 6-Year High.

TCMB Report: Private Sector's Foreign Credit Debt is Increasing

The Central Bank of the Republic of Turkey (TCMB) has published the report titled "Developments in Private Sector's Foreign Credit Debt" for the month of August. The report reveals that the private sector's credit debt obtained from abroad increased by 3.7 billion dollars last month, reaching 202.5 billion dollars. This indicates that the level has reached the highest point since August 2019.

Credit Debt Distribution and Maturity Analysis

As of August, it was observed that the long-term credit debt increased by 4.3 billion dollars to 192.4 billion dollars, while the short-term credit debt (excluding commercial loans) decreased by 0.6 billion dollars, falling to 10.1 billion dollars.

Difference between Financial and Non-Financial Institutions

It was recorded that the total debt of financial institutions increased by 2 billion dollars, while the total debt of non-financial institutions increased by 1.7 billion dollars. Long-term debts showed an increase of 2.6 billion dollars in financial institutions and 1.7 billion dollars in non-financial institutions.

Currency Composition and Short-term Loans

When looking at the debt composition, dollars have the highest share in foreign borrowing. Of the 192.4 billion dollar long-term credit debt, 57.8% is in dollars, 32.5% in euros, 2.1% in Turkish Liras, and 7.7% in other foreign currencies. Additionally, of the 10.1 billion dollars in short-term credit debt, 48.3% is in Turkish Lira.

Maturity Distribution up to 1 Year

The total credit debt of the private sector obtained from abroad with a maturity of up to 1 year was determined to be 62.7 billion dollars. Of this debt, 40.3 billion dollars belongs to banks, 17.2 billion dollars to non-financial institutions, and 5.2 billion dollars to non-banking financial institutions.