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Erdogan’s IMF Triumph Masks Surge in Private Debt: Turkey Credit

Turkey paid its last loan installment to the International Monetary Fund after a 52-year relationship, a triumph for Prime Minister Recep Tayyip Erdogan as government debt falls even as private borrowing surges.

The Treasury completed a payment of $412 million to the IMF today, Erdogan said in televised remarks from Ankara. A decrease in government debt to about 40 percent of gross domestic product from 78 percent when he came to power a decade ago has helped drive lira borrowing costs below higher-rated countries including India, Russia, Brazil and Chile.