Finance Minister Mehmet Şimşek Announces Reduction in Borrowing Interest Rates
Finance Minister Mehmet Şimşek has announced a reduction in borrowing interest rates, attributing the decrease to the government’s ongoing fiscal program. According to Şimşek, the country’s investment appeal has grown, and the Credit Default Swap (CDS) risk premium continues to decline. He stated, “Thanks to our program, investor interest in our country is increasing, and our CDS risk premium continues to fall. Due to the decreasing risk premium and declining inflation expectations, treasury bond interest rates are dropping.”
Minister Şimşek highlighted that the interest rate for the 2-year benchmark Turkish Lira bond has dropped by approximately 1000 basis points since March. He also noted that the interest rates for 5-year and 10-year dollar-denominated bonds have decreased by about 50 basis points since April.
Şimşek emphasized that the disinflation process will further improve macroeconomic indicators and continue to lower borrowing costs. He expressed confidence that these positive developments will strengthen the positive outlook in public finance.