Turkey required to repay $ 179 billion external debt

SANAA, Aug. 29 (YPA) – JP Morgan estimated Turkey’s external debt matures in the year to July 2019 at about $179 billion, equivalent to almost a quarter of the country’s annual economic output, indicating the risk of a sharp contraction in the economy, which is suffering from the crisis.

Most of the debt, about $ 146 billion, is owed by the private sector, especially banks.

JP Morgan said in a note on Wednesday that the government needs to repay only $ 4.3 billion or extend the amount, while the rest is dues on public sector entities.

The issue has emerged into the spotlight as the lira fell 40 percent this year amid fears of political interference in monetary policy and a dispute with the United States over the detention of the American priest Andrew Branson by Turkey.

The currency’s collapse has raised fears that companies may have difficulty repaying their debts in hard currency, and has also put pressure on European banks’ shares exposed to Turkey.

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