Turkey's private sector obliged to pay $76 billion in one year

Total outstanding loans received from abroad, based on a remaining maturity basis, that the Turkish private sector is obliged to repay within 12 months -- by the end of next May -- is $75.9 billion, the central bank has announced in its Outstanding Loans Received from Abroad by Private Sector statistics for May 2014.

Total private sector liabilities were up 5.2 percent in the first five months of the year over the end of last year to $208 billion, corresponding to an accrual of roughly $10 billion in the volume of debts. Of this amount, $5.9 billion was long-term and $4.3 billion was made up of short-term debts.

In the aforementioned five-month period, long-term loans obtained by private sector companies from lenders abroad reached $163.2 billion, while short-term debts from financial institutions reached $44.7 billion, according to central bank figures.

Non-banking sectors were active in soliciting financing from abroad, as 53.7 percent of debts -- $87.6 billion -- were acquired by them. Of these companies, the service sector's share was the largest at 58.7 percent. Of these companies, 40.8 percent were listed under the category of “industry,” while companies operating in the agricultural sector had a very small share -- 0.5 percent -- of loans secured from abroad.

Regarding the currency composition of the total of $44.7 billion, 51.0 percent consists of USD, 38.1 percent consists of euros, 10.5 percent lira and 0.4 percent other currencies.

From the side of creditors, liabilities to private creditors, which account for 88.9 percent of the outstanding long-term loan stock, excluding bonds, increased by $4 billion, whereas liabilities to official creditors, which account for 11.1 percent of the outstanding long-term loan stock, excluding bonds, rose by only $39 million.