Turkey's Foreign Debt Stock Rises 3.5%: Private Sector Debt Hits 318 Billion USD

Data released by the Central Bank of the Republic of Turkey (CBRT) shows that Turkey's foreign debt stock reached 539 billion USD in the second quarter of 2026, a 3.5% increase compared to the previous quarter. Short-term foreign debt increased by 2.5% to 170.7 billion USD, while long-term debt rose by 3.9% to 368.2 billion USD.

Private Sector Debt Surge

■Private sector foreign debt increased by 4.2% to 318 billion USD compared to the previous quarter.

■Public sector debt rose by 3.3% to 197.9 billion USD.

■CBRT's foreign liabilities decreased by 4.8% to 23.1 billion USD.

Debt Structure Reallocation

■46.2% of foreign debt stock is held in loans.

■Debt securities account for 19.5%, while deposits make up 17.2%.

■USD constitutes 48.9% of foreign debt, followed by euros at 28.8%.

Payment Profile Shift

■Principal repayments are concentrated in 24-month and longer terms.

■Short-term (0-12 months) repayments are primarily driven by private sector loans.

The primary drivers behind the debt growth include financial struggles in the private sector and increased foreign capital inflows to Turkey. This could lead to currency depreciation and tighter credit access. Investors should exercise caution as this trend may threaten long-term financial stability.