FOREIGN DEBT DYNAMICS OF THE TURKISH ECONOMY IN THE POST-LIBERALISATION ERA

Özet

The Turkish economy went through significant changes in the 1980s and onwardsfollowing the launch of the January 1980 Programme. The programme aimedfor financial liberalisation along with the liberalisation of international trade and this transformation had significant implications for external debt dynamics of the economy. During the 1990s external borrowing accompanied domestic borrowing of the public sector. Total foreign debt of the economy, more specifically, of the private sector, has increased further and reached high levels leading to serious concerns along with high current account deficits and high domestic debt stock of the private sector. This study aims to examine the changing nature and dynamics of the external debt issue in the Turkish economy in the last few decades.