Tuesday 14 February 2012

Record Redemptions Loom Amid Akbank $1.3 Billion Loan Talks: Turkey Credit - Bloomberg

Turkish companies have a record 307 billion liras ($174 billion) of debt maturing this year just as their domestic borrowing costs rise to the highest in almost three years and HSBC Holdings Plc predicts foreign bank loans will shrink.
Companies from Citigroup Inc.’s Akbank (AKBNK) TAS to Yapi & Kredi Bankasi AS must repay an average 56 percent more local and international obligations than in 2011, according to 386 earnings statements on Bloomberg. Lira loan rates climbed to an average 15.7 percent on Feb. 3 from 8.2 percent a year ago after the currency fell the most in emerging markets last year, central bank data show. The cost of overseas loans to Turkish companies jumped to 125 basis points above the London Interbank Offered Rate yesterday from 115 on Sept. 30. The rate for Russian companies is 251 basis points, the data show.

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