Private sector's external debt increased in November

The private sector's total debt from loans obtained from abroad increased by 4.8 billion dollars as of November 2023 compared to the end of the previous year, rising to 163.6 billion dollars.

The Central Bank of the Republic of Turkey announced the developments regarding the private sector's external debt for the period of November 2023.

Accordingly, the private sector's total debt from loans obtained from abroad reached 163.6 billion dollars in November, an increase of 4.8 billion dollars compared to the end of the previous year. During this period, the private sector's long-term external debt increased by 3.5 billion dollars to 154.2 billion dollars, while its short-term debt (excluding trade credits) rose by 1.3 billion dollars to 9.4 billion dollars.

While banks' long-term loan borrowing increased by 3.2 billion dollars in November compared to the end of the previous year, their borrowing through bond issuance rose by 1.2 billion dollars to reach 15.1 billion dollars. During this period, there was no significant change in the loan-based borrowing of non-bank financial institutions, while their bond stock decreased by 1.2 billion dollars to 1.2 billion dollars.

In the same period, the loan-based borrowing of non-financial institutions decreased by 360 million dollars, and their bond stock fell by 221 million dollars to 9.7 billion dollars.

Banks' short-term loan borrowing decreased by 271 million dollars in November compared to the end of the previous year, totaling 4.8 billion dollars. Loan borrowing by non-financial institutions increased by 718 million dollars to 1.8 billion dollars.

Principal repayments within one year total 51.6 billion dollars

As of the end of November, the debt to private creditors, excluding bonds, regarding long-term loan debt increased by 4.7 billion dollars compared to the end of the previous year, reaching 108.1 billion dollars. During this period, the debt to private creditors, excluding bonds, regarding short-term loan debt also rose by 702 million dollars to 8.2 billion dollars.

The long-term loan debt consisted of 58.5 percent US dollars, 36.1 percent euros, 2.2 percent Turkish lira, and 3.2 percent other foreign currencies. The short-term loan debt consisted of 40.2 percent US dollars, 31.1 percent euros, 23 percent Turkish lira, and 5.7 percent other foreign currencies.

On the other hand, 36.8 percent of the total long-term loan debt belongs to financial institutions, and 63.2 percent belongs to non-financial institutions. Financial institutions account for 69.9 percent of the total short-term loan debt, while non-financial institutions account for 30.1 percent.

When the private sector's total debt from loans obtained from abroad is examined by remaining maturity as of the end of November, it was calculated that the principal repayments to be made within one year amount to a total of 51.6 billion dollars.