Page 29 - TURKRptMay20

Also on April 2, Yildiz Holding-owned Ulker Biskuvi, a biscuit and confectionery producer that is one of Turkey’s largest food companies, said that it obtained a $455mn syndicated loan with a maturity of three years. Ulker will use the loan to refinance a $375mn syndicated loan maturing in April, suggesting a renewal rate of 121% (See Section 9.2.6 for details).
“Argentina, Turkey, Chile and Colombia have seen the sharpest build-up in FX debt [among emerging markets] since 2009. Heavy reliance on FX debt represents a significant liquidity and solvency risk for some EM corporates and sovereigns, while leaving them more exposed to sudden shifts in global risk appetite,” the Institute of International Finance (IIF) said on April 7 in April version of its Global Debt Monitor report entitled “COVID-19 Lights A Fuse”.
Real sector’s FX debt​. The Turkish real sector’s FX debt amounted to 27.3% of the country’s GDP and was 12.2% USD-denominated and 14.5% EUR-denominated as of Q4 2019 while the Turkish government’s FX debt stock stood at 16.2% of GDP, with shares of 9.5% USD and 4.9% EUR.
The Turkish financial sector’s FX debt stood at 20.3% of GDP, at 15.8% USD and 4.5% EUR, while Turkish households had no FX debt thanks to one of the rare accurate policy steps taken by the government following the 2008 global crisis.
The IIF data suggested that Turkey’s overall FX debt amounts to 64% of GDP versus the official figure of 58% as of Q4.
29​ TURKEY Country Report​ May 2020 ​ ​www.intellinews.com