ANKARA
A new regulation providing the Turkish Treasury guarantees for bonds issued by public entities -- known as subnationals -- is positive for funding, credit agency Fitch Ratings said in a statement Friday.
Under Law 4749 Debt Management and Borrowing Principals, subnationals' bond issuance in the external capital markets will be backed by the Treasury's repayment guarantee.
In Fitch's view, this will help attract a diversified investor base at favorable market conditions.
This should also be positive for the subnationals' funding profiles over the medium to long term.
