Turkish banks boost foreign borrowing by 60%, securing over $20B
The entrance sign of the building housing the Central Bank of the Republic of Türkiye (CBRT), Ankara, Türkiye, Sept. 24, 2022. (Reuters Photo)
The Central Bank of the Republic of Türkiye (CBRT) stated that Türkiye’s short-term external debt stock increased by 0.1% as of the end of September 2024 compared to the end of 2023, reaching $176.4 billion.
According to the report, Turkish banks increased the amount of loans from abroad by 60.8%, borrowing $20.3 billion.
According to CBRT data, the short-term debt of the public sector, consisting entirely of public banks, rose significantly by 14.8% to $39.6 billion. Meanwhile, the private sector’s short-term external debt climbed by 3.3% to $98.4 billion.
- The short-term external debt stock originating from banks rose by 15.5% to $79 billion compared to the end of 2023, while the short-term debt stock of other sectors declined by 3.9% to $59 billion.
- Deposits held by non-resident foreign entities, excluding banks, decreased by 1.2% to $19.8 billion. Deposits held by foreign banks also fell by 4.4%, amounting to $19.8 billion.
- Non-resident deposits in Turkish lira increased significantly by 26.8%, reaching $19.2 billion.
Private sector leads in external debts
The foreign currency composition of Türkiye’s short-term external debt stock was reported as 47.3% in U.S. dollars, 22.4% in euros, 14.8% in Turkish lira and 15.5% in other currencies.
In terms of the debtor breakdown, the total stock was shared as 23.7% by the public sector, 16.5% by the central bank, and 59.8% by the private sector.
Based on remaining maturity—regardless of the original maturity—short-term external debt stock with a maturity of one year or less stood at $233.1 billion. Of this amount, $21.4 billion consisted of debt owed by Türkiye-based banks and private sector entities to their overseas branches and subsidiaries.
