Turkish cenbank says short-term debt stock drops to $121.7 bln in June after revisions

Credit: REUTERS/Umit Bektas

Turkey's short-term external debt stock dropped to $121.7 billion at the end of June, from $144.9 billion a month earlier, the central bank said, after it revised its data gathering method.

By Nevzat Devranoglu and Ali Kucukgocmen

ISTANBUL, Aug 19 (Reuters) - Turkey's short-term external debt stock dropped to $121.7 billion at the end of June, from $144.9 billion a month earlier, the central bank said, after it revised its data gathering method.

The aim of the revisions in four data points include correcting inconsistencies by raising data quality and increasing compatibility with international standards in securities statistics, the bank has said.

Data from the bank showed trade credits due to imports dropped to $30.9 billion in June after the revisions, compared to $56.5 billion in May.

The biggest impact on the foreign debt data is due to the revisions in trade credits, which include the data being collected directly through company reports, compared to the customs declarations used previously.

A forex trader said the foreign debt levels that seemed higher than their actual level were already taken into account in market analyses, and were unlikely to lead to a positive development in the Turkish lira.

"The Turkish central bank's generally weak credibility could increase the risk of the data quality being questioned," the trader said.

The central bank said the drop in foreign debt levels was expected to impact Turkey's current account, which is seen standing at $22 billion by the year-end, according to the median estimate in a Reuters poll this month.

The bank has said it expects the current account to post a surpluses every month for the rest of the year, which would bring the annual deficit to around $11-13 billion, almost half of the median expectation, according to economists' calculations.

The current account will also be supported tourism revenues this year, which the bank expects to be around $20 billion, higher than market estimates.

Companies' net forex deficit dropped to $127.98 billion at end-June, compared to $168.6 billion in May, before the revisions, central bank data also showed.

The net international investment position, the difference between Turkey's external assets and liabilities, stood at $280.6 billion, compared to $327.8 billion in May.

(Reporting by Nevzat Devranoglu and Ali Kucukgocmen; Editing by Dominic Evans)

((ali.kucukgocmen@thomsonreuters.com , @alikucukgocmen; +905319306206; Reuters Messaging: Reuters Messaging: ali.kucukgocmen.thomsonreuters.com@reuters.net))

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