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Geleneksel Repo Ihaleleri Ortalama Basit Faiz: Traditional repo auctions average uncompounded rate, Next scheduled rate-setting meeting will be held on October 22, Fonlama Kompozisyonu: funding composition, Hedefli Likidite: targeted liquidity introduced for COVID-19 crisis funding, GLP: late liquidity window (by Cumhur Ornek of BloombergHT).
At traditional repo auctions, the rates are set by bank bids and they had already reached 11.42% by September 23.
On September 24, the authority opened a TRY10bn traditional repo auction, as it generally does each day, with a few exceptions made for TRY5bn auctions on some days. The latest auction saw the rate rise further to 11.59%.
Funding via the late liquidity window at 11.25% (it will move up to 13.25% starting from September 25) reached TRY41bn, or 14.5% of overall funding.
As a result, the WACF rose to 10.69%.
When funding via USD-TRY swaps is taken into account, calculating the real funding rate becomes a knottier feat. In the chart below, shared on September 10 by @e507, Haluk Burumcekci of Burumcekci Consulting calculates the overall funding rate, including swaps, at 9.44% as of September 8 versus a WACF of 10.15%.
Fonlama Kanalları: Funding channels, API: open market operations.
The lira rates at USD-TRY swap auctions continued to rise in the following days, reaching 10.20% in the 3-month auction held on September 22.
6.3 International ratings
Fitch Ratings on August 28 revised the outlooks on Turkey’s largest telco Turk Telekom and largest mobile operator Turkcell to ‘Negative’ from ‘Stable’ and affirmed the operators at ‘BB-’.
37 TURKEY Country Report October 2020 www.intellinews.com
