Turkey’s Short-Term External Debt Falls Slightly to $172.7 Billion in March

According to the latest data from the Central Bank of the Republic of Turkey (CBRT), Turkey’s short-term external debt stock (STED) decreased slightly by 0.2% in March, standing at $172.7 billion. This figure reflects the original maturity of liabilities due within one year or less.

When recalculated based on remaining maturity, which includes all debts maturing within 12 months regardless of original terms, the short-term external debt stock reached $224.8 billion.

Breaking down the debt by source, the CBRT report highlighted that short-term debt from the banking sector rose 0.5% to $77.8 billion, while the Central Bank’s liabilities dropped by 4.2%, falling to $30.2 billion.

For domestic banks, short-term loans borrowed from abroad dropped by 3.5% month-over-month, totaling $18.6 billion. Meanwhile, foreign banks’ deposits held in Turkish banks rose by 1.1% to $18.5 billion.

Non-bank foreign residents also increased their presence in Turkey’s financial system. Foreign currency deposits surged by 3.5% to $19.5 billion, and Turkish lira deposits rose by 0.9%, reaching $21.3 billion.

In terms of corporate and non-bank sector debt, short-term obligations climbed by 1.0% from the previous month to $64.8 billion. The bulk of this was due to a 1.5% increase in trade credits, now standing at $60.7 billion, while cash loan liabilities decreased sharply by 6.9% to $4.1 billion.

The currency composition of Turkey’s short-term external debt is also notable:

• 35% in US dollars

• 26% in euros

• 24% in Turkish lira

• 15% in other currencies

The report emphasized that, as of March, there was a decline in total liabilities of the Central Bank and the General Government, while obligations from banks and other sectors saw a modest increase based on remaining maturity.