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Turkey to Repay $166b in Foreign Debt

Turkey to Repay $166b in Foreign DebtTurkey to Repay $166b in Foreign Debt

As of the end of August, Turkey has accrued $166.6 billion in foreign debt that has to be paid within a year, according to recent figures from the Central Bank of Turkey.

A total of $129.8 billion in short-term debt that must be paid within a year was accrued in Turkey as of the end of this August, in addition to $36.8 billion of existing long-term debt, which also must be paid within a year’s time, Today’s Zaman reported.

The private sector is expected to pay off $140.5 billion of this debt, while the public sector will pay $24.3 billion and the central bank $1.8 million. As of the end of August, $92.5 billion worth of bank-based short-term debt had accumulated in Turkey, a 1.6 percent rise compared to the end of 2013, while short-term debt in other sectors reached $36.9 billion, a 1.7 percent drop from the end of last year.

The amount of debt held by public banks exhibited a sharp rise by the end of August, increasing to $18.9 billion, a 7.4 percent increase from the end of last year.

Meanwhile, bond issues rose sharply, nearly doubling between the end of last year and the end of this August from $1.5 to $2.9 billion. Fifty-two percent of short-term foreign debt stock was denominated in US dollars, while 33.5 percent was held in euros, 11.7 percent in Turkish lira and 2.8 percent in other currenies.

Financialtribune.com