Turkey’s Short-Term External Debt Rises to $170.3 Billion in May, Foreign Deposit Surge Noted

According to a report released by the Central Bank of the Republic of Turkey (CBRT), Turkey’s short-term external debt stock (STED) rose by 1.2% month-over-month, reaching $170.3 billion by the end of May 2025.

Debt Maturing in One Year Tops $222 Billion

When assessed by remaining maturity, which includes all debts due within a year regardless of original term, Turkey’s total short-term external liabilities reached $222.3 billion.

Banking Sector and Other Sectors Drive the Increase

• Bank-originated short-term debt rose by 1.1%, totaling $73.9 billion

• CBRT’s own short-term liabilities declined slightly by 0.6%, now at $29.6 billion

• Non-bank sectors saw a sharper monthly increase of 2.0%, reaching $66.8 billion

Key Components of Short-Term Debt Fluctuate

• Short-term loans used by domestic banks dropped 7.8%, to $12.0 billion

• Foreign bank deposits in Turkish banks fell by 1.2% to $18.8 billion

• Non-bank foreign investors’ FX accounts rose marginally by 0.1% to $20.4 billion

• Their Turkish lira deposits, however, jumped 9.9% to $22.7 billion

Trade Credit and Cash Borrowing Diverge

• Trade-related credit liabilities rose 0.5% to $62.1 billion

• Cash borrowing by firms soared 25.5%, reaching $4.7 billion

Currency Breakdown Highlights Dollar, Euro, and Lira Exposure

The currency composition of the short-term debt stock as of May 2025 was:

• 35% in U.S. dollars

• 27% in euros

• 23% in Turkish lira

• 15% in other currencies

A key observation in the CBRT report noted that foreign deposits in Turkish banks rose to approximately $62 billion, while outstanding short-term credit obligations of banks and other sectors fell to the same level—suggesting a balance between external credit reliance and foreign investor confidence.