Posted by meb at October 24th, 2008

The rising currency rates have also created a threat of repayment failure of short-term external debts in the private sector, which are near $56 billion as of August, according to recent statistics from the central bank.

While increasing the risk by the rising amount of debts denominated in YTL, the debt burden is at the same time trapping the private sector, by reducing the chances of finding resources from abroad due to diminishing liquidity everywhere amid the global financial meltdown.

The same figures also show that the short-term external debt stock of the private sector has increased by $14.3 billion during the eight months between January and August 2008. Of the total short-term debt, $24.9 billion belongs to banks while $29.1 billion makes up the liabilities section of the balance sheets of other companies.
source: Today’s Zaman

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