EVALUATION OF BRICS COUNTRIES AND TURKEY'S FOREIGN DEBT ACCORDING TO RATIOS AND MULTICRITERIA DECISION-MAKING METHODS

Today, the external debt problem is not only a problem for Developing Countries but also for Developed Countries. Countries may resort to external borrowing in cases where they have a savings deficit, experience resource shortages in external debt repayments or fail to maintain the current account balance. The external borrowings should be used in productive areas with high marginal returns. If the borrowed credits are used for consumption expenditures, external debt payments or in areas with low returns, countries may face the risk of entering an external debt spiral. Therefore, the management of external debt is important. The situation is similar for the BRICS countries and Turkey, which are among the Developing Countries. In order to compare the indebtedness of BRICS countries and Turkey between 2010 and 2023, the countries' indebtedness was assessed using ratios such as the ratio of total external debt to gross domestic product, the ratio of total external debt to exports, the ratio of external debt service to exports, and the current account balance. Research conducted on BRICS countries and Turkey shows that China, India and Russia will not face problems with external debt and that their external debt is sustainable, while South Africa, Turkey and Brazil need to be more cautious in managing their external debt.