Turkey due to pay USD 168.7 bn external debt in the next 12 months
Güldem Atabay
Short-term external debt stock recorded USD 125.3 billion at the end of July, indicating an increase of 9.7 percent compared to the end of 2020. Specifically, in this period, banks’ short-term external debt stock increased by 2.6 percent to USD 58.9 billion and other sectors’ short-term external debt stock increased by 10.8 percent to USD 39.4 billion.
Short-term FX loans of the banks received from abroad increased by 1.0 percent to USD 13.8 billion. FX deposits of non-residents (except banking sector) within residents banks increased by 4.5 percent in comparison to the end of 2020 recording USD 15.9 billion, and FX deposits of non-resident banks recorded USD 14.5 billion increasing by 9.3 percent. In addition, non-residents’ Turkish lira deposits decreased by 3.6 percent and recorded USD 14.8 billion.
Trade credits due to imports under other sectors recorded USD 33.7 billion reflecting an increase of 13.1 percent compared to the end of 2020.
From the borrowers side, the short-term debt of public sector, which consists of public banks, increased by 9.1 percent to USD 25.4 billion and the short-term debt of private sector increased by 4.6 percent to USD 72.9 billion compared to the end of 2020.
From the creditors side, short-term debt to monetary institutions under private creditors item increased by 10.3 percent to USD 72.0 billion and short-term debt to non-monetary institutions increased by 8.9 percent to USD 52.8 billion. Short-term bond issues amounted to 514 million as of the end of July increasing from USD 464 million observed at the end of 2020. In the same period, short-term debt to official creditors recorded USD 72 million.
As of end of July, the currency breakdown of short-term external debt stock composed of 40.7 percent US dollars, 25.8 percent euro, 13.3 percent Turkish lira and 20.2 percent other currencies.
Short-term external debt stock on a remaining maturity basis, calculated based on the external debt maturing within 1 year or less regarding of the original maturity, recorded USD 168.7 billion, of which USD 17.7 billion belongs to the resident banks and private sectors to the banks’ branches and affiliates abroad. From the borrowers side, public sector accounted for 21.4 percent, Central Bank accounted for 16.1 percent and private sector accounted 62.5 percent in total stock.
