P.A. Turkey

Macro Snapshot: Outstanding External Loans Received by Private Sector

In October, private sectors’ outstanding ST debt (included trade credits) increased by USD6.4bn to USD48.6bn compared to end of 2020. ST financial debt decreased by USD1.2bn to USD8.5bn while ST trade credits increased by USD7.6bn to USD40.1bn.
LT debt decreased by USD1.8bn to USD161.4bn. Hence, total external loans of private sector increased by USD4.5bn to USD211.1bn. Private sector’s external loans to GDP ratio was 27.5% (2020: 28.7%). When trade credits excluded, total external loans of private sector was decreased by USD1.3bn to USD169.9bn.

Regarding long-term loans, liabilities to private creditors excluding bonds amounted to USD106.4bn, decreasing by USD2.6bn compared to the end of the previous year.

External credit redemption was USD4.6bn in October. It would be at USD7.5bn in November, USD4.8bn in December and USD2.5bn in January.

The cumulative share of top 5 creditors is at 70.8%.

Nonfinancial sectors’ short term debt decreased by USD129mn to USD1.4bn with respect to 2020-end. Also, financial sectors’ short term debt decreased by USD1.2bn (banks’ decreased by USD900mn to USD5.8bn) to USD7bn at the same period. Short term trade
credits increased by USD4.5bn to USD37.4bn. Accordingly, total outstanding short term loans increased by USD3.2bn to USD45.8bn at the end of October 2021.

The cumulative share of top 5 creditors is at 44.4%.

The planned redemption until 12 months constitutes 20.2% of the LT debt stock as of October 2021.

LT loans belongs to financial sector decreased by USD6.2bn to USD64.7bn whereas non-financial sector’s LT loans increased by USD4.4bn (mainly driven by construction) to USD96.8bn in comparison the end of 2020.

 

 

Y. F. Securities Research