The foreign debt risk of Turkish banks is decreasing.

Fitch Ratings has conducted a detailed analysis of the short-term foreign debts of Turkish banks, indicating that current risks are expected to gradually decrease. The total short-term foreign debt of the banks is expected to remain stable at 102 billion dollars, while an improvement in the maturity structure is anticipated due to the impact of long-term issuances.

According to analyses, the total foreign debt of Turkish banks is expected to reach 160 billion dollars in the first half of 2025. This situation reflects a total increase of 7 billion dollars, following a 17 billion dollar rise for 2024. In other words, Turkish banks aim to reorganize their debt structures and transition to a more sustainable situation.

Fitch emphasizes that short-term foreign debt is a critical indicator in uncertain market conditions, which also affects the risk profile of the banks. The increase in long-term issuances will enable banks to be in a more advantageous position in their liquidity management and will enhance the overall confidence in the markets. Thus, it is seen as an important development for investors.

In this context, the financing strategies of banks are highly dependent on developments in international markets. Turkish banks are taking significant steps towards sustainable growth by shifting towards long-term borrowing instruments to minimize market fluctuations. Through these effective strategies, the risk management systems of the banks are also improving, providing a more predictable outlook for investors.

According to Fitch’s report, the solidity of the debt structure of Turkish banks also reflects the overall health of the country’s economy. Therefore, reducing the pressure of short-term foreign debt emerges as a factor that will positively contribute to the economic recovery process. Additionally, this situation is considered a factor that will enhance international investors' confidence in Turkey.