Turkey’s Private Sector Foreign Debt Hits 5.5-Year High at $190.4 Billion

Turkey’s private sector foreign debt stock has surged to $190.4 billion as of May 2025, marking the highest level since November 2019, according to the latest data from the Central Bank of the Republic of Turkey (CBRT). The jump reflects a sharp rise in long-term borrowing, particularly by the real sector.

Major Increase Driven by Long-Term Loans

In the first five months of 2025, the total external debt stock increased by $18.1 billion, largely driven by long-term liabilities. At the end of 2024, the figure had stood at $172.2 billion. By May, long-term debt rose by $20.7 billion to $177.5 billion, while short-term debt (excluding trade credits) declined by $2.6 billion, settling at $12.8 billion.

A notable contributor was the real sector, which ramped up its long-term borrowing by $12.2 billion, pushing its outstanding balance to $105.9 billion. Meanwhile, financial institutions added $8.6 billion to reach a total of $71.7 billion in long-term external liabilities.

Banks Cut Short-Term Debt Exposure

Short-term borrowing patterns showed mixed movements. Banks reduced their short-term foreign debt by $3.6 billion, bringing it down to $8.2 billion, while non-bank financial institutions increased theirs by $331 million to $1.7 billion. The real sector’s short-term foreign debt rose by $673 million, approaching $3 billion.

Debt Maturing Within One Year Nears $58 Billion

As of May 2025, the amount of foreign debt maturing within 12 months reached $57.8 billion. This total includes:

• $38.1 billion owed by banks

• $15.3 billion by non-financial companies

• $4.4 billion by non-bank financial institutions

Currency Breakdown: USD Dominates Long-Term Loans

A closer look at the currency composition of long-term debt reveals that:

• 58.1% is denominated in U.S. dollars

• 32.5% in euros

• 2.2% in Turkish lira

• 7.2% in other currencies

In contrast, the short-term debt structure highlights the rising role of the Turkish lira, which now accounts for 39.3% of all short-term external borrowings. This is nearly on par with the U.S. dollar’s 39.5%, followed by 18.4% in euros and 2.8% in other currencies.