UPDATE 1-Turkish private sector long-term debt $139.4 bln

(Adds details, background)

ISTANBUL, Dec 23 (Reuters) - Turkish private sector long-term foreign debt reached $139.414 billion in October while banks' short-term foreign debt, excluding commercial loans, was $9.404 billion, the Central Bank said on Tuesday.

The Central Bank data showed that the Turkish private sector's long-term foreign debt was $120.864 billion at the end of last year.

Economists are worried about large private sector debt, which has been accumulated over the years as high interest rates in Turkey forced its firms to borrow abroad.

Turkey is currently holding talks with the International Monetary Fund to prevent future balance of payments difficulties as credit has dried up due to the global financial crisis.

The Central Bank said short-term foreign debt, which it defines as debt maturing within one year, for the non-banking sector amounted to $1.706 billion at the end of October.

A large share of the debt is in the form of syndicated and other loans extended to Turkish firms and banks from foreign banks and other financial institutions.

Other debt was in the form of loans extended from international lenders such as the European Investment Bank and the International Finance Corporation to Turkish banks and firms.

Long-term foreign debt stood at $139.414 billion in October, with the financial sector, including banks, holding $43.54 billion of this. The non-banking sector firms held $95.87 billion in long-term foreign debt. (Reporting by Selcuk Gokoluk; editing by Stephen Nisbet)