Turkish Treasury to repay $7.13bn of debt this year

ANKARA

Turkey’s Treasury plans to pay back 21.4 billion Turkish liras ($7.13 billion) of debt, including 3.5 billion liras ($1.16 billion) of foreign debt between October and December 2016, the Treasury said Friday.

According to figures released on the Treasury's official website, the domestic debt redemption projected for October till December 2016 is 18 billion liras ($6 billion), while domestic borrowing amounts to 17 billion liras ($5.66 billion).

The Treasury will not borrow money from foreign sources during this period.

The domestic debt redemption for the month of October will be 2.1 billion liras ($700 million), while domestic borrowing is expected to be 1.9 billion liras ($633 million).

In November 2016, the domestic debt is projected to be 10.6 billion liras ($3.53 billion), while domestic borrowing is projected to reach 10 billion liras ($3.33 billion).

In December 2016, the domestic debt is anticipated at 5.3 billion liras ($1.76 billion) and domestic borrowing at 5.1 billion liras ($1.69 billion).

The Treasury will also hold nine bond auctions between Oct. 25 and Dec. 13 to generate income and reduce debt.

- Investor confidence despite rating downgrade

The country’s Treasury’s debt auctions attracted strong bids on Thursday, underlining investors’ continuing confidence in the Turkish economy despite the failed July 15 coup attempt in July and Moody’s recent credit rating cut.

The Treasury has borrowed 3.95 billion Turkish liras ($1.32 billion) through the auction of two bonds, according to the Treasury.

The first auction saw five-year semi-annual bonds with a 4.60-coupon rate sold at 9.08 simple interest and at a 9.28 percent compound interest rate.

The second auction was for six-year fixed semi-annual bonds, which was sold at a 5.54 percent periodic compound interest rate.