EUR 115.21 For Business Accounts Only

BANK SYNDICATION PAYMENTS

Turkey’s external debt payment schedule is to increase in September and especially October, which comes at a tough time of decreasing tourism revenues and weakening economic activity. Led by financial companies, external loan repayments will total US$7.7bn in September and then US$10.6bn in October. Banks’ syndication rollovers will be the most timely indicator of how rollovers are going, although not being a perfect indicator as syndications are relatively short-term and highly dependent on banking relationship and side businesses. For example, back during the ’08-09 crisis, syndication rollover ratios remained at 100% levels throughout 2008, before having dropped to 60% levels at the worst point in April 2009. Whereas, banks’ total long-term borrowing rollover ratios had dropped to as low as 40% levels as early as 4Q18.