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Turkish borrowers’ total loan issuance fell by $8bn y/y to $15bn in 2019, according to Global Capital.
6.0 Public Sector 6.1 Budget
Budget deficit leapt 70% y/y to TRY123.7bn, about 2.9% of forecasted GDP, in 2019 as the government cranked up spending in the face of a recession. Cash budget ran a deficit of TRY130.5bn (€19.9bn) in 2019 versus a TRY70.35bn shortfall in 2018. In the government’s new economic programme, released in September, officials forecast a budget deficit of TRY125bn for 2019.
The deficit target for 2020 is TRY139bn, or 2.9% of GDP, excluding additional transfers from the central bank. Haluk Burumcekci of Burumcekci Consulting, said in January that 2019 revenues had been boosted by central bank profits, transfers from legal reserves, one-off contributions and tax restructurings. For 2020, he said, “the [deficit] target of 2.9% does not look realistic without additional measures”.
Total transfers from the central bank amounted to TRY90bn in 2019. Bankers calculated that the central bank would transfer a total TRY50-55bn to the Treasury throughout 2020.
31 TURKEY Country Report OUTLOOK 2020 www.intellinews.com
