Breaking the record: Turkey's foreign debt 'highest in history'
Turkey's foreign debt increased $49.9 billion in 2013, breaking national records as the highest single-year increase in foreign debt in the history of the Turkish Republic, according to the "89th Economic Outlook Report," published by the opposition Republican People's Party (CHP) on Monday.
Per-capita foreign debt rose significantly from $1,963 in 2002, when the ruling Justice and Development Party (AK Party) came to power, to $5,105 last year. The increase occurred in spite of a population growth of 10 million people during the 11-year period. Fifty-seven percent of last year's accrued debt was short-term. This pushed short-term foreign debt to 33 percent of Turkey's total foreign debt, breaking another record.
The open foreign exchange position increased dramatically from $6.5 billion in 2002 to $173.2 billion last year, according to the report, which warned that forecasts for Turkey's growth, inflation and unemployment did not look promising and that the country's analysts are expecting a period of economic pain.