Turkish banks drive external debt burden with 20.1% surge in October: CBRT
File photo shows entrance of Central Bank of Republic of Türkiye (CBRT) headquarters in Ankara, Türkiye, accessed on May 28, 2024. (AA Photo)
Türkiye’s short-term external debt stock reached $180.1 billion at the end of October, marking a 2.3% increase compared to the end of 2023, the Central Bank of the Republic of Türkiye reported on Wednesday.
The rise was driven by a significant increase in banks’ external debt, offset slightly by a decline in other sectors. The short-term external debt stock of banks surged by 20.1% to $82.2 billion, while the debt stock of other sectors declined by 1.5%, settling at $60.4 billion.
As of October, the short-term external debt stock was composed of 47.3% in U.S. dollars, 21.2% in euros, 16.4% in Turkish lira, and 15.1% in other currencies.
Foreign currency (FX) loans obtained by banks from abroad jumped by 81.7% to $22.8 billion. FX deposits held by non-residents (excluding the banking sector) in domestic banks fell by 2.0%, amounting to $19.6 billion.
Meanwhile, FX deposits held by non-resident banks dropped by 9.0% to $18.8 billion. However, Turkish lira deposits of non-residents increased significantly by 38.2%, reaching $20.9 billion.
Trade credits linked to imports under other sectors stood at $52.8 billion, reflecting a 2.8% decline compared to the end of 2023.
Debt by sector and creditor breakdown
On the borrowers’ side, public sector short-term debt grew by 15.5% to $39.8 billion, while private sector short-term debt rose by 7.9%, reaching $102.8 billion.
From the creditors’ perspective, short-term debt owed to monetary institutions under the private creditors category edged up by 0.5% to $96.0 billion, while debt to non-monetary institutions fell by 1.8% to $77.1 billion.
Short-term bond issuances increased sharply to $6.9 billion, from $1.7 billion at the end of 2023. Debt owed to official creditors remained minimal at $47 million.
On a remaining maturity basis—calculated as external debt maturing within one year regardless of original maturity—the stock reached $236.1 billion.
Public sector borrowers accounted for 23.4% of the total stock, the central bank for 15.9%, and the private sector for 60.7%. This included $22.9 billion owed by resident banks and private sector entities to banks’ branches and affiliates abroad.
