Economics

Turkey's Bill for Debt-Fueled Economic Growth Starts to Fall Due

Yildiz $7 billion refinancing set to be completed Friday
Corporate FX liabilities reach record as lira slumps

Godiva chocolates sit on the shelf inside a Boston, Massachusetts Godiva Boutique Friday, August 10, 2007. Campbell Soup Co. may sell its Godiva chocolate brand to focus on increasing global sales of healthier soups, snacks and beverages.Photographer: JB REED

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By Constantine Courcoulas and Asli Kandemir

March 29, 2018 at 7:30 AM UTC

This article is for subscribers only.

The bill for Turkey’s growth boom is finally coming due.

With the lira plunging and the nation’s current account deficit ballooning, the cost of corporate Turkey’s foreign-currency debt -- equal to about 40 percent of economic output -- is climbing every day, putting the nation’s companies in a tight spot.