Turkey’s Short-Term Foreign Debt Jumps to $223.3 Billion
Dollar
According to the Central Bank of the Republic of Turkey (CBRT), the country’s short-term external debt stock rose by 1.1% in July 2025, reaching $170.9 billion. When measured by remaining maturity — meaning all debt due within one year regardless of its original term — the figure climbed to a staggering $223.3 billion, up from $220.3 billion a month earlier.
Sector Breakdown: Banks Up, Central Bank Down
The data showed notable shifts across sectors:
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Banks’ short-term foreign debt stock increased by 1.3%, reaching $74.4 billion.
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In contrast, CBRT-related liabilities dropped by 1.6%, falling to $28.9 billion.
These numbers underline how private-sector borrowing continues to expand, while the Central Bank is cautiously reducing its short-term exposure.
Why It Matters
Turkey’s heavy reliance on external debt — especially short-term borrowings — leaves the economy vulnerable to global market swings, interest rate hikes, and currency shocks. Rising short-term debt also increases rollover risks, meaning the government and private sector must refinance larger amounts under potentially tougher conditions.
The increase in the remaining-maturity short-term debt stock signals that Turkey faces more than $223 billion in repayments within the next 12 months, a significant pressure point for both policymakers and financial institutions.
The Bigger Picture
While the CBRT has pursued tighter monetary policy to restore credibility and slow inflation, external debt data shows ongoing fragility. The mix of higher bank borrowing and reduced CBRT liabilities suggests a shift in where financing pressure is being absorbed — with private banks shouldering more of the short-term burden.