Short-term external debt stock hits a new record in August

The Central Bank of the Republic of Turkey (CBRT) reported that, according to the short-term external debt statistics for August 2023, the short-term external debt stock increased by 10.9 percent compared to the end of 2022, reaching 165.4 billion dollars. During this period, the short-term external debt stock originating from banks increased by 4.2 percent to 64.9 billion dollars, while the short-term external debt stock of other sectors increased by 0.8 percent to 54.5 billion dollars.

Short-term loans used by banks from abroad increased by 10.2 percent compared to the end of 2022, reaching 11.8 billion dollars. Foreign currency deposit accounts of non-residents, excluding banks, decreased by 5.8 percent to 20.3 billion dollars, while deposits of non-resident banks increased by 10.6 percent to 18.6 billion dollars. Additionally, deposits of non-residents in Turkish Lira increased by 7.8 percent compared to the end of last year, reaching 14.2 billion dollars.

Import debts under other sectors decreased by 0.7 percent compared to the end of 2022, reaching 48.4 billion dollars.

PUBLIC SECTOR DEBT INCREASED BY 12.2 PERCENT

When examined by borrower, the short-term debt of the public sector, which consists entirely of public banks, increased by 12.2 percent compared to the end of 2022 to 32.4 billion dollars, while the short-term external debt of the private sector decreased by 0.5 percent to 86.9 billion dollars.

When examined by creditor, short-term debts to monetary institutions under the heading of private creditors increased by 23.6 percent compared to the end of the year to 91.8 billion dollars, while debts to non-monetary institutions decreased by 2.3 percent to 72.3 billion dollars. Short-term bond issuances, which were 676 million dollars at the end of 2022, reached 981 million dollars as of the end of August 2023. In the same period, short-term debts to official creditors amounted to 261 million dollars.

48.9 PERCENT IS IN DOLLARS

As of the end of August 2023, the currency composition of the short-term external debt stock consisted of 48.9 percent in dollars, 24.3 percent in Euros, 9.6 percent in Turkish Lira, and 17.2 percent in other currencies.

As of the end of August 2023, the short-term external debt stock calculated according to the remaining maturity—using data on external debt with 1 year or less remaining regardless of the original maturity—reached 211 billion dollars. A portion of 16.5 billion dollars of this stock consists of debts of banks and the private sector resident in Turkey to their foreign branches and affiliates. When evaluated by borrower, it was observed that the public sector had a 20.1 percent share, the Central Bank had a 21.8 percent share, and the private sector had a 58.1 percent share in the total stock.