Turkey’s Private Sector Sees Rise in Long-Term Debt, Drop in Short-Term Credit

According to the latest data released by the Central Bank of the Republic of Turkey (CBRT), Turkey’s private sector has significantly increased its long-term external debt, while short-term credit liabilities have declined as of the end of April 2025 compared to year-end 2024.

The figures reveal that long-term credit debt rose by $16.7 billion, reaching $173.5 billion, whereas short-term credit debt (excluding trade credits) fell by $2.9 billion, settling at $12.5 billion.

Sharp Rise in Debt for Financial and Non-Financial Institutions

The CBRT reported that financial institutions saw their total debt increase by $3.3 billion, and non-financial institutions by $10.4 billion during the same period. Specifically, long-term debts rose by $6.3 billion for financial entities and by $10.4 billion for non-financial ones. On the short-term side, financial institutions reduced their debt by $2.9 billion, while non-financial firms recorded a modest rise of $0.3 billion.

Dollar Dominates Turkey’s External Debt Composition

In terms of currency composition, the U.S. dollar remains the leading currency in Turkey’s external borrowing. For the $173.5 billion long-term debt, 57.9% is in U.S. dollars, followed by 33.0% in euros, 2.1% in Turkish lira, and 7.0% in other currencies. The $12.5 billion in short-term debt is made up of 46.0% U.S. dollars, 19.5% euros, 31.1% Turkish lira, and 3.3% other currencies.

One-Year Debt Exposure Stands at $56.6 Billion

As of the end of April, the total private sector debt maturing within one year reached $56.6 billion. Of this, $37.9 billion is owed to banks, $14.5 billion to non-financial institutions, and $4.2 billion to non-bank financial institutions.