Page 26 - Turkey Outlook 2025

particularly smaller ones, pay higher fees.
During the autumn season in 2024, the spreads for the 367-day tranches fell sharply by 175bp compared to a year previously, and by 75bp compared to the spring season. (See full list here.)
The costs of the 734-day tranches stood at the guaranteed overnight financing rate (SOFR) plus 2.25% and the euro interbank offered rate (Euribor) plus 2.00%.
The costs of the 1,101-day tranches were, meanwhile, released at SOFR+2.35% and Euribor+2.10%.
Central bank chart: Top 10 Turkish banks’ combined syndicated loan renewal rates and costs.
Benchmarks declining
In addition to the significant recovery in spreads, the benchmarks are also falling. See Section 3.0 above for latest developments in the global easing process.
SOFR, meanwhile, dropped below the 5% level and it is going through the 4%-level. It stood at 0.05% in October 2021.
12-month Euribor fell below the 3% level but still compares as significantly high in terms of the minus 0.5% recorded in October 2021.
As things stand, the Fed and the ECB will deliver some rate cuts throughout 2025. Benchmarks will fall further in parallel with the policy rates.
Rollover rates
In the autumn season of 2024, a total of nine Turkish banks rolled a combined sum of $6bn at a combined rollover rate of 127% in obtaining a combined sum of $7.4bn via 10 facilities.
In the spring season of 2025, 11 banks will roll a combined sum of
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