ISTANBUL
Private sector in Turkey shifted its borrowing instrument and issued bore bonds after 2010. Bonds issued in the first 9 months of 2013 reached nearly 18 billion dollars, which is a massive increase comparing to the 1.2 billion issued in the same period of 2010.
According to the data of Central Bank of the Turkish Republic (TCMB), foreign long term credit loan increased by 6.2 percent in the third quarter of this year, totaling to 147.8 billion dollars.
Bond issue increased its portion in Turkish private sector's loans from abroad, while the amount of credit loans decreased. The credit loan was 99 percent of private sector's foreign long term loaning in 2010.
In the last three years, Turkey's private sector rapidly decreased its need for credit loan, increasing bonds' portion in finding financial sources.
Looking at Turkey's private sector's foreign long term loaning of 119 billion 792 million 248 thousand dollars in 2010, 70.6 percent of this amount was supplied from Europe, 14.7 percent from Asia and 13.6 percent was from US. While in 2013, the total amount of 147 billion 764 million 896 thousand dollar of loan was 61.3 percent from Europe, 14.5 percent from Asia and 11.6 percent from US.
- “No problems in governing the debts"
Serhat Gurleyen, Director of Research in Is Investment, cited that Turkish banks and major companies provide most of their finance needs from abroad because of the big difference between the investments (20% of the Gross National Product) and the savings (12% of Gross National Product).
Gurleyen, added: "The foreign channel for borrowings kept open even in the crisis period because of the strength of their balance structure and long term relations. A fluctuation was observed after May because of the expectation of FED’S decrease in asset purchasing. The medium and long term interest rates grew up."
Ali İhsan Çamcı, The Director of Treasury of Halk Investment, said Turkey’s foreign loaning was eased between 2002 and 2008 adding that “after 2008, together with the global crisis a decrease was observed in Turkish Private sector’s foreign loaning. We can say that Turkey is in a normalization process at the moment”.
englishnews@aa.com.tr
