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Private sector external debt declined in April

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The Central Bank of the Republic of Turkey (CBRT) has published private sector loan debt developments from abroad for the period of April 2022.

As a result, at the end of April, total private sector debt from abroad decreased by $ 5.3 billion from the end of 2021 to $ 163.7 billion. When analyzed by maturity, compared with the end of 2021, long-term loan debt decreased by $ 5.5 billion to $ 156.0 billion; short-term loan debt (excluding commercial loans) increased by $ 218 million to $ 7.7 billion.

Long-term debt has decreased

Looking at the breakdown by borrower, as far as long-term financial debt is concerned, bank lending in the form of loans decreased by $ 1.5 billion compared to the end of the previous year, while their loans in the form of bond issues they fell by $ 2.0 billion to $ 18 billion. Over the same period, loans in the form of loans from non-bank financial institutions fell by $ 331 million, while the bond stock fell by $ 5 million to $ 1.8 billion. Non-financial corporate lending in the form of loans declined by $ 1.5 billion over the period, while bonds increased by $ 234 million to $ 10.3 billion. As for short-term financial debt, bank lending in the form of loans increased by $ 379 million compared to the end of 2021 to $ 5.1 billion; Loans from non-financial corporations in the form of loans increased by $ 148 million to $ 1.0 billion.

Analyzing the distribution by creditor, debt to private creditors excluding bonds at the end of April decreased by $ 2.8 billion from the end of the previous year to $ 104.6 billion. In terms of short-term debt, debt to private creditors excluding bonds increased by $ 276 million from the end of the previous year and amounted to $ 7.4 billion.

63.8 percent of the debt is in dollars

Looking at the currency composition, 63.8% of the long-term debt of $ 156.0 billion is in dollars, 32.7% in euros, 1.7% in Turkish lira and 1.8% in other currencies and $ 7.7 billion of short-term debt, 37.2% of the debt is in dollars, 40.3% in euros, 18.7% in Turkish lira and 3.8% in other currencies.

Analyzing the sector breakdown, at the end of April, 38.9 percent of total long-term loan debt of $ 156.0 billion was financial institution debt and 61.1 percent of it was non-financial institution debt. . Over the same period, 81.4% of total short-term loan debt of $ 7.7 billion was financial institution debt and 18.6% non-financial institution debt.

Analyzing the total debt of private sector loans from abroad on the basis of the residual maturity at the end of April, it is observed that the main repayments to be made within 1 year amount to a total of 45.9 billion dollars.

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