Page 25 - Turkey Outlook 2025

Turkey, meanwhile, rolls over a combined sum of around $150-200bn worth of external debt each year.
Since the currency crisis in 2018, some anxieties have been regularly raised over the prospect of a Turkish default. No such default has occurred.
In 2024, fresh funds came thanks to the shift to economic orthodoxy. As a result, the banking industry’s debt rollover rates as well as the volume of combined eurobond sales (by the Treasury, banks and corporates), subordinated eurobond sales by banks and debut eurobond sales broke records.
The share of syndicated loans in the composition of the external funding of Turkey and Turkish banks has declined in recent years.
Despite the lower share in the composition, the banks’ syndicated loan renewals are a good indicator for tracking developments in the sustainability of Turkey’s external debt burden.
Longer maturities
By the autumn seasons of 2024, Turkish banks were known for obtaining 367-day (a ‘trick’ maturity for registering loans as long-term that uses two extra days) syndicated loans twice a year, with one season in spring (April-July) and the other in the autumn (October-November).
Thanks to the ongoing positive impacts of the monetary normalisation process, 371-day, 734-day and 1,101-day tranches emerged as a new phenomenon in the autumn season of 2024.
Costs down sharply
The banks release identical costs, while some of the lenders,
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