Turkish Finance Minister: Country’s Risk Premium Hits Four-Year Low
Turkish Finance Minister Mehmet Şimşek announced that the Credit Default Swap (CDS) values, which indicate the country’s risk premium, have reached their lowest level in the last four years.
Şimşek emphasized that while the improvement in country risk premiums over the past year has been around 50 basis points on average in developing countries, Turkey’s improvement has exceeded 400 basis points. The Minister highlighted that the implementation of correct policies played a significant role in this decline.
He stated that this reduction has decreased the external borrowing costs for both the public and private sectors, making access to external financing easier.
Source: Ministry of Finance