Private sector's foreign credit debt decreased in October

The total credit debt of the private sector from abroad decreased by $7.5 billion compared to the end of 2021, reaching $160.9 billion in October. The Central Bank of the Republic of Turkey (CBRT) published the developments in the credit debt of the private sector from abroad for the period October 2022. Accordingly, the total credit debt of the private sector from abroad decreased by $7.5 billion compared to the end of 2021, falling to $160.9 billion in October. During this period, the long-term credit debt of the private sector from abroad decreased by $8.3 billion to $152.7 billion, while short-term credit debt (excluding commercial loans) increased by $779 million to $8.2 billion. While banks' long-term borrowing in the form of loans decreased by $4.2 billion in October compared to the end of 2021, bond issuance borrowing decreased by $5.1 billion to $14.9 billion. During the same period, non-bank financial institutions' borrowing in the form of loans decreased by $147 million, while their bond stock increased by $42 million to $1.9 billion. During this period, non-financial institutions' borrowing in the form of loans increased by $1.3 billion, while their bond stock increased by $180 million to $10.2 billion. Banks' short-term borrowing in the form of loans increased by $501 million compared to the end of 2021 to $5.2 billion, while non-financial institutions' borrowing in the form of loans increased by $628 million to $1.5 billion. - Principal repayment in one year is $40.4 billion When we examine the distribution of long-term credit debt by creditor, debts to private creditors excluding bonds decreased by $1.2 billion compared to the end of 2021 to $105.8 billion. During the same period, short-term debt to private creditors excluding bonds increased by $899 million to $8 billion. Of the long-term credit debt, 64.8 percent was in dollars, 31.8 percent in euros, 1.7 percent in Turkish lira, and 1.7 percent in other currencies. Of the short-term credit debt, 41.6 percent was in dollars, 38 percent in euros, 18.4 percent in Turkish lira, and 2 percent in other currencies. On the other hand, 36 percent of the total long-term credit debt was in financial institutions, and 64 percent in non-financial institutions. Of the total short-term credit debt, 76.2 percent was in the debts of financial institutions, and 23.8 percent in the debts of non-financial institutions. When the total credit debt of the private sector obtained from abroad was examined according to the remaining maturity as of the end of October, it was calculated that the total principal repayments to be made within 1 year were at the level of 40.4 billion dollars.