ANKARA: Turkey’s construction sector has shouldered around 15 billion Turkish Liras ($6 billion) of extra debt over the last 2.5 years due to the lira’s losses against the US dollar.
The lira’s loss in value over the last two-and-a-half years has hit a number of sectors, causing their debt burdens to increase, including the construction sector.
The lira was around 1.79 against the dollar in mid-2012. The construction sector took out 10 percent of the $111 billion in banking loans in foreign currencies at the time, and the sector’s debt would have increased to around $16 billion if the lira’s value had remained at 1.79 to the dollar. However, the sector’s debts to banks have increased up to $29 billion (40 billion liras), as the value of the lira is now at around 2.47 to the dollar. Additionally, the sector has taken $5 billion in loans from banks in the last 2.5 years, adding an extra $1.3 billion interest burden on the sector.
