Treasury unveils financing program for 2020

0
66

The Turkish Treasury and Finance Ministry has unveiled its financing program for 2020.

The ministry projects that total amount of debt service will be 352.1 billion Turkish Liras, comprising the payments of 222.6 billion liras in principal and another 129.4 billion liras in interest.

“Total domestic debt service is expected to realize as 287 billion liras while total external debt service is expected to realize as 65.1 billion liras,” the ministry said in a statement.

The ministry plans a 299.6 billion lira of domestic borrowing for next year.

The statement added that the Treasury plans to raise $9 billion equivalent external funding in 2020 through bond issuances from international capital markets.

“In addition to bond/lease certificate issuances, the total amount of external financing is planned to reach at most $9.6 billion via project and program loans from international financial institutions,” it said.

According to the ministry, the main pillars of borrowing strategies for 2020 are to borrow mainly in Turkish liras, borrow in foreign currencies besides the U.S. dollar in international markets for market diversification, keep the share of debt maturing within 12 months, and keep a certain level of cash reserve in order to reduce the liquidity risk associated with cash and debt management.

The ministry noted that the average maturity of cash domestic borrowing, which was 59.3 months in 2018, came down to 28.2 months in the period of January and October 2019 while the average cost of fixed-rate domestic borrowing, which was 17.5 percent in 2018, was realized as 20.2 percent in the first 10 months of this year.

Depending on the redemption profile in 2020, the lira denominated fixed-rate coupon bonds with various maturities will continue to be issued as “benchmark bonds,” the statement added.

Hurriyet Daily News

LEAVE A REPLY

Please enter your comment!
Please enter your name here