New record in short-term external debt

The short-term external debt, which was 206.2 billion dollars in June, rose to 210 billion dollars in July, reaching a new record level. The previous record was recorded in May at 207.3 billion dollars.

According to data from the Central Bank (TCMB), as of the end of July 2023, the short-term external debt stock based on remaining maturity—calculated using external debt data with a maturity of 1 year or less, regardless of the original maturity—rose to 210 billion dollars.

As of the end of July, the short-term external debt stock increased by 11.2 percent compared to the end of 2022, rising to 165.8 billion dollars.

During this period, the short-term external debt stock originating from banks increased by 4 percent to 64.8 billion dollars, while the short-term external debt stock of other sectors increased by 1.1 percent to 54.6 billion dollars.

LIMITED INCREASE IN TL DEPOSITS

A portion of 16.7 billion dollars of this stock consisted of debts owed by banks resident in Turkey and the private sector to their foreign branches and affiliates.

When evaluated by borrower, it was observed that the public sector held a 19.9 percent share, the Central Bank held a 22.1 percent share, and the private sector held a 58 percent share of the total stock.

Short-term loans used by banks from abroad increased by 7.9 percent compared to the end of 2022, reaching 11.6 billion dollars.

Excluding banks, foreign residents' foreign currency deposit accounts decreased by 4.4 percent to 20.7 billion dollars, while deposits of foreign resident banks increased by 12.9 percent to 19 billion dollars.

Additionally, deposits of foreign residents in TL increased by 3.2 percent compared to the end of last year, reaching 13.6 billion dollars.

PUBLIC SECTOR DEBT INCREASED BY 10.8 PERCENT

Import debts under other sectors decreased by 0.5 percent compared to the end of 2022, falling to 48.5 billion dollars.

When examined by borrower, the short-term debt of the public sector, which consists entirely of public banks, increased by 10.8 percent compared to the end of 2022 to 32 billion dollars, while the private sector's short-term external debt decreased by 0.0 percent to 87.4 billion US dollars.

When examined by creditor, short-term debts to monetary institutions under the private creditors heading increased by 23.6 percent compared to the end of the year to 91.9 billion dollars, while debts to non-monetary institutions decreased by 1.7 percent to 72.8 billion dollars.

48.4 PERCENT IS IN US DOLLARS

Short-term bond issuances, which were 676 million US dollars at the end of 2022, reached 914 million dollars as of the end of July 2023.

In the same period, short-term debts to official creditors amounted to 236 million US dollars.

As of the end of July 2023, the currency composition of the short-term external debt stock consisted of 48.4 percent US dollars, 25.2 percent Euro, 9.1 percent TL, and 17.3 percent other foreign currencies.

News Source: 12punto