Strong demand for new bonds, says Nebati

ADANA

Demand has been strong for the new national income-linked bonds, Treasury and Finance Minister Nureddin Nebati said.

“We started collecting offers for the bonds on June 15 and the bookbuilding period will continue next week until June 22,” Nebati told a meeting in the southern province of Adana, reiterating that income-linked bonds are part of the instruments intended to encourage individuals to invest their savings in Turkish lira assets.

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The government announced the new domestic debt instruments earlier this month.

The yield on these bonds is indexed to the income of the state-owned enterprises Directorate General of National Airports Authority (DHMİ) and Directorate General of Coastal Safety (KIYEM), which are transferred to the state budget.

“We will continue to support our citizens, without compromising fiscal discipline,” the minister said, adding that Turkey’s economic model, which promotes production, exports, investments and employment, is being successfully implemented.

Foreign-currency-protected lira deposit accounts have enhanced financial stability and helped stabilize exchange rates, the minister noted.

“There has been speculation about the cost of the program to the budget. However, the budgetary cost of the exchange-protected deposit system has been limited. And the payments made for this program from the budget amount to 21.1 billion lira since so far,” Nebati said.

Turkey, Economy, Bond,

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