Turkish Firms’ Hard Currency Borrowing at Home Hits 5-Year High

Turkish companies are betting on lira stability as they accumulate the highest levels of foreign-currency debt in five years.

Domestic firms are opting for loans in euros and dollars to avoid lofty interest payments at home as Turkey’s central bank keeps its benchmark rate over 40% to control inflation. Foreign-currency loans taken locally reached the equivalent of $170.4 billion at the end of January — up almost a third from a year earlier — according to the most recent data from the nation’s banking regulator.