Turkish private sector foreign debt rises $8.4 billion

Turkish private sector foreign debt rises $8.4 billion

The Turkish Central Bank disclosed that the private sector saw its long-term foreign debt increase to $164.8 billion since December 2013.
turkish-private-sector-foreign-debt-rises-84-billion Date Added : 19 December 2014 Friday

Turkish private sector’s long-term foreign debt rose by $8.4 billion in November to $164.8 billion since December 2013, the country's central bank disclosed Tuesday.

The sector's short-term foreign debt - debt that must be paid in the next 12 months - also increased by $4.6 billion to $46.1 billion over the same period.

Data released by the bank indicated that more than half of Turkey's private sector long-term debt was in dollars, at 60.6 percent, with 31.9 percent in euros and 6.2 percent in Turkish lira.

Moreover, 53.4 percent of short-term debt was in dollars, with 37.7 percent in euros and 8.6 percent in Turkish lira.

Turkish lira at 11-month low

The Turkish lira dropped after weaker-than-expected unemployment figures from the Turkey’s main statistical body were revealed Monday.

Meanwhile, the exchange rate of the Turkish lira against the U.S. currency has risen at the highest level in last 11 months on Monday, to 2.3761 per dollar on Monday after September’s official figures indicated a significant increase of the unemployment rate - at 10.5 percent, according to the Turkish Statistical Institute.

The dollar value against the Turkish lira is vital for Turkey's private sector as most of its borrowing is in dollars but the earnings are in Turkish lira.

Last week, the exchange rate was 2.2983 lira per dollar following the release of positive data concerning U.S. retail sales and declining requests for unemployment benefits.

The U.S. Federal Reserve monetary policy committee will meet Tuesday and Wednesday to make a decision on whether to start raising short-term interest rates in 2015.

Higher U.S. interest rates could spur a flight of investments from Turkey and other emerging markets. 

 

source : bgnnews.com

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