Turkish private sector external debt down $87 million

The Turkish private sector's long-term external debt reduced to $195.6 billion, compared January 2015, with an $87 million decrease.

The Central Bank of the Republic of Turkey (CBRT) announced the developments related to private sector's external debt from January 2016. The private sector's long-term external debt reduced to $195.6 billion as of January 2016 with a $87 million decrease, compared January 2015 while the short-term external debt, with the exception of commercial loans, reduced to $20.7 billion decreasing $108 million.

Considering the distribution regarding debtors, the long-term debts of banks decreased $189 million and the long-term bonded debts of banks decreased $43 million compared to late-2015.

Within the same period, the external debts of other non-bank financial institutions decreased $262 million while their bond debts reached $3.4 billion. During the same period, external debts of non-financial institutions increased $478 million while their bond debts reached $5.7 billion.

The short-term external debts of banks reduced to $14.5 billion with a $389 million decrease while the short-term external debts of non-financial institutions reached $2.6 billon increasing $600 million compared to the previous year.

Considering the distribution regarding creditors, the long-term external debts for private creditors increased $164 million while their short-term external debts increased $344 million compared to the previous year.

Regarding the currency composition, the total $195.6 billion of long-term external debts was 59.7 percent in dollars, 33.2 percent in euros, 5 percent Turkish lira and 2.1 percent other currencies. The total amount of $20.7 billion of short-term external debts was 53.6 percent in dollars, 28.3 percent in euros, 17.8 percent in Turkish lira and 0.3 percent in other currencies.

When sectoral distribution is considered, as of the end of January, 53.3 percent of the total amount of $195.6 billion of long-term external debts belonged to financial institutions and 46.7 percent belonged to non-financial institutions. Within the same period, $18 billion of external debt of financial institutions generated 86.7 percent of the total amount of short-term external debt. When the total amount of external debts of the private sector is examined according to the remaining term as of the end of January, the total amount of principal repayment that is due in a year was calculated as $70.6 billion.