Turkey projects foreign debt payment at $10.9B in 2018

By Tuba Sahin and Dilara Zengin

ANKARA (AA) – The Turkish Treasury said Tuesday it is projecting foreign debt at $10.92 billion as part of 163.8 billion liras ($43.1 billion) in debt service in 2018.

"The total domestic debt service is expected to reach 122.4 billion liras ($32.2 billion) while the total external debt service is expected at 41.5 billion liras ($10.92 billion)," it said in a press release.

According to the program, payments of principal would total 97.2 billion liras ($25.6 billion) with interest at 66.7 billion liras ($17.6 billion).

"Considering these projections, total domestic borrowing is planned as 134.3 billion liras ($35.4 billion) in 2018," it said.

The Treasury said it plans to provide the equivalent of $6.5 billion in external funding next year through bond issuances in international capital markets.

The total borrowing amount was estimated at 162.3 billion liras ($42.7 billion), of which 128.5 billion would be domestic and 33.8 billion external by the end of 2017, according to the program.

“Due to the increase in total debt service and developments in non-borrowing resources in 2017, the total borrowing amount increased compared to the initial announcement,” the Treasury said.

The Treasury now estimates that total borrowing for 2017 will increase to over 140 billion lira from 133 billion as first planned.