Firms' short-term foreign debt rises $11 bln to hit $42 bln in November

Rising $11 billion from the end of 2012 to last November, the short-term foreign debt owed by Turkey's private sector totaled $42 billion, central bank data released on Friday showed.The $42 billion figure excludes short-term commercial loans. Short-term debt in the banking sector rose $7.4 billion from end-2012 to November and the debt of all nonbank financial institutions rose $2.1 billion. The private sector's overall foreign debt increased $12.3 billion from end-2012 to November to hit $151.5 billion. In the same period, the banks' debt liabilities rose $6.1 billion, while bond issues rose $4.7 billion. Also, loan liabilities of nonfinancial institutions fell $543 million; nonfinancial institutions' bond liabilities remained at $1.5 billion.Regarding currency composition, 57.3 percent of the country's long-term external debt stock was denominated in US dollars; 35.5 percent was in euros; and all other currencies, 7.2 percent. Observers say that data should serve as a wake-up call; the Turkish lira is losing value against the US dollar and the large amount of external debt in US dollars is a concern for Turkish businesses that borrow money in dollars while earning lira.Regarding the sectoral distribution of long-term loans in the private sector, by the end of November, 56.7 percent of liabilities, or $85.9 billion, belonged to nonfinancial institutions. While 62.4 percent of the loans were taken out by service-sector businesses, 37.1 percent of the loans went to the industrial sector. Only 0.5 percent of the loans went to the agriculture sector.At the end of November, principal repayments on the private sector's total outstanding loans issued by foreigners amounted to $73.5 billion for the next 12 months on a remaining maturity basis.Turkey's lira weakened to a record low to exceed 2.217 against the US dollar on Friday. The Borsa İstanbul (BIST-100) benchmark stood at 2.208 to the dollar on closing on Thursday.Number of new companies increases by 26 pct in 2013The number of companies established in 2013 rose by 26.05 percent compared to a year before, data released by the Turkish Union of Chambers and Commodity Exchanges (TOBB) showed on Friday.Meanwhile, the number of companies that were closed down also increased by 9.67 percent year-on-year. A total of 49,028 new companies were established in 2013 while 15,538 companies were closed down.Looking at monthly figures, the number of new companies established in December came to 4,295, a decline of 7.59 percent compared to November, when the figure stood at 4,648. However, the number of companies that were closed down in December came to 2,400, a 131.44 percent decrease compared to the previous month. In December, 340 foreign-funded companies were established while the figure for the whole year stood at 3,875. Out of the 340 companies in December, 51 were established by Syrian capital, 32 by German capital and 20 by capital from the Netherlands. In addition, out of the total number of foreign-funded companies in 2013, 489 of them were Syrian, 394 were German and 280 were Iranian.Taking into consideration the provincial distribution of newly established companies in December, 39.76 percent are located in İstanbul, 11.19 percent in Ankara and 6.21 percent in İzmir. The provinces of Ardahan, Bayburt, Kırşehir and Tunceli did not see any new companies being set up.
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