Page 59 - TURKRptFeb20

30-Jan
31/01/2022
Gold-backed bond (kg) (6-month coupon)
14.7
0.38
3-Feb
14/04/2021
434-day Zero Coupon (re-open)
3-Feb
04/11/2026
7-year floating semi-annual (re-open)
4-Feb
20/10/2021
2-year Fixed Semi-annual (benchmark) (re-open)
4-Feb
15/01/2025
5-year CPI-indexed semi-annual (re-open)
11-Feb
09/02/2022
2-year lease certificate (direct sale) (semi-annual)
9-Mar
09/06/2021
455-day Zero Coupon (new)
9-Mar
29/01/2025
5-year CPI-indexed semi-annual (re-open)
10-Mar
20/10/2021
2-year Fixed Semi-annual (benchmark) (re-open)
10-Mar
04/11/2026
7-year floating semi-annual (re-open)
17-Mar
16/03/2022
2-year lease certificate (direct sale) (semi-annual)
Domestic borrowing market remains almost idle following a series of huge mistakes since 2018 while external borrowing channels are also not promising.
The 2020 is supposed to be a trouble year for the government financing.
Erdogan has the power so far to order the local private lenders and pension funds to finance the government and the central bank reserves but a crowding-out for 2020 seems already in the pocket.
Budget deficit is booming, borrowing plan for 2020 is up 50% y/y, it is raining tax and prices hikes and there are fresh plans to transfer more money from the central bank.
Turkish central bank valuation account decline prompts worries national lender may transfer funds to government.
Meanwhile, official inflation and interest rates have nosedived, lira remains stable.
Highlights from the Treasury Financing Program for 2020, which was prepared based on the Medium Term Program and Central Government Budget projections:
● Average maturity of domestic borrowing fell from 59.3 months in 2018 to 28.2 months in January - October 2019.
● Average cost of fixed rate domestic borrowing rose from 17.5% in 2018 to 20.2% in January - October 2019 but interest rates have been under mounting pressure as the government aims single digit borrowing rates in the dry market.
59 TURKEY Country Report OUTLOOK 2020 www.intellinews.com