Turkish companies’ foreign loans shrink to $198.5 billion

The long-term foreign currency loans of Turkish companies fell to $198.5 billion in July, the central bank said on Wednesday.

Loans from abroad decreased from $201.7 billion reported in June. They had totalled $209.7 billion at the end of 2018.

Turkish firms are cutting back on foreign borrowing after a currency crisis last year made the loans more expensive to repay. Foreign banks are also lending less as risks to repayment increase.

Banks’ loan liabilities abroad dropped $6.6 billion compared to the end of 2018, while non-financial institutions’ liabilities dropped $1.7 billion, the central bank said.

Short-term loans, excluding trade credits, rose to $12.9 billion from $12.4 billion in June. They had stood at $15.4 billion at the end of last year.