Türkiye’s Private Sector Foreign Debt Climbs to $185.9B in April
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Türkiye’s private sector foreign debt rose sharply to $185.9 billion by the end of April 2025, marking a $13.8 billion increase since December 2024, according to data released by the Turkish Central Bank on Wednesday.
The rise was primarily driven by a surge in long-term external borrowing, which reached $173.5 billion, reflecting an increase of $16.7 billion. Short-term external debt also grew to $12.5 billion, up $2.9 billion in the same period.
A closer look at the data reveals that non-financial firms held 57.2% of the total foreign debt, while the financial sector accounted for the remaining share—highlighting the business community’s ongoing reliance on external financing.
In terms of currency composition, the majority of long-term debt remained denominated in U.S. dollars (57.9%), followed by the euro (33%), Turkish lira (2.1%), and other foreign currencies (7%). On the short-term side, U.S. dollar loans made up 46%, Turkish lira loans 31.1%, euro loans 19.5%, and 3.3% in other currencies.
This rising foreign debt trend underscores the vulnerability of Turkish companies to exchange rate fluctuations and global credit conditions, especially amid ongoing macroeconomic uncertainties and tighter international lending environments.
