Short-term external debt hits record in June

According to the data of the Central Bank (CBRT), as of the end of June 2024, the short-term external debt stock according to the remaining maturity, calculated using external debt data with 1 year or less remaining maturity, regardless of the original maturity, increased to 236.6 billion.

In June last year, this figure was 206.2 billion dollars. In May, the external debt rose to 235.3 billion dollars.

The $20.9 billion portion of the stock in question consists of debts of banks resident in Turkey and the private sector to their foreign branches and affiliates. When evaluated on a debtor basis, it was observed that the public sector had a 23.0 percent share in the total stock, the Central Bank had a 18.9 percent share, and the private sector had a 58.1 percent share.

INCREASE IN BANKS’ EXTERNAL DEBT

As of the end of June, short-term external debt stock amounted to 180.5 billion dollars, an increase of 2.5 percent compared to the end of 2023.

During this period, short-term external debt stock originating from banks increased by 10.2 percent to 75.4 billion dollars, while short-term external debt stock of other sectors decreased by 1.6 percent to 60.4 billion dollars.

Short-term loans used by banks from abroad increased by 38.7 percent compared to the end of 2023, reaching 17.5 billion dollars. Foreign exchange deposit accounts of non-residents excluding banks decreased by 5.8 percent to 18.8 billion dollars, and deposits of banks resident abroad decreased by 4.9 percent to 19.7 billion dollars.

In addition, TL-denominated deposits of foreign residents increased by 28.2 percent compared to the end of last year, reaching 19.4 billion dollars.

IMPORT DEBTS 53.2 BILLION DOLLARS

Import debts under other sectors decreased by 1.9 percent compared to the end of 2023 and amounted to 53.2 billion dollars.

When examined on a debtor basis, the short-term debt of the public sector, which consists entirely of public banks, increased by 11.1 percent compared to the end of 2023, reaching 38.3 billion dollars, while the short-term external debt of the private sector increased by 2.3 percent, reaching 97.5 billion dollars.

When examined on a creditor basis, short-term debts to monetary institutions under the heading of private creditors increased by 3.4 percent compared to the end of the year, reaching 99.3 billion dollars, while debts to non-monetary institutions decreased by 2.4 percent, reaching 76.7 billion dollars.

Short-term bond issuances, which were $1.2 billion at the end of 2023, amounted to $4.4 billion as of the end of June 2024. In the same period, short-term debts to official creditors amounted to $165 million.

As of the end of June 2024, the foreign exchange composition of the short-term external debt stock consisted of 49.5 percent in dollars, 21.5 percent in euros, 13.4 percent in Turkish liras and 15.6 percent in other currencies.