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Turkey’s Domestic Sectors’ Total Financial Assets Reach 114 Trillion Lira

In the third quarter of 2024, the total financial assets of Turkey’s domestic sectors amounted to 114 trillion lira, while liabilities stood at 123 trillion lira, according to the “Financial Accounts Report” published by the Central Bank of the Republic of Turkey (CBRT).

Key Highlights from the CBRT Report

  • Net Financial Position: The net financial position deficit of Turkey’s economy decreased by 6 percentage points compared to the previous period, reaching 23.3% of Gross Domestic Product (GDP).
  • Net Borrower Status: In terms of net financial transactions, the overall economy transitioned from being a net lender (0.11% of GDP in the previous quarter) to a net borrower (3.4% of GDP) in this quarter.

Breakdown of Domestic Economy’s Financial Positions

  • Overall Financial Borrowing: The analysis of sectoral financial balances shows that the total domestic economy remained in a financially indebted position.
    • Households: Positioned as creditors to other domestic sectors and the rest of the world.
    • Non-financial Corporations and General Government: Positioned as debtors to other sectors.
    • Financial Institutions: Played a balancing role, maintaining a near-neutral net financial position due to their financial intermediation role.
  • Household Financial Assets:
    • Cash and Deposits: Represented approximately 60% of total financial assets.
    • Liabilities: Nearly all liabilities consisted of loans.
  • Non-Financial Corporations:
    • Key Asset and Liability Items:
      • 64% of assets: Comprised of trade receivables between firms.
      • 49% of liabilities: Consisted of trade payables.

Debt-to-GDP Comparison

When comparing sectoral debt ratios internationally, the total debt of Turkey’s domestic sectors was observed to be at a relatively low level.

  • The ratio of total debt—including loans and debt securities—to GDP stood at 92% in the third quarter of 2024, reflecting a decrease from the previous quarter.

Source: Bloomberght/ Prepared by: İlayda Gök

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