Investors’ interest in Türkiye continues to increase thanks to the economic program the government implements, Finance Minister Mehmet Şimşek has said.
“Our cost of borrowing is falling while Türkiye’s CDS risk premium continues to decline,” Şimşek wrote on social media platform X.
Treasury bond rates are decreasing in line with declining risk premiums and improvement in inflation expectations, the minister added.
The interest rate on the two-year Turkish Lira-denominated benchmark bond decreased by approximately 1,000 basis points compared to March, while the interest rate on five- and 10-year dollar-denominated bonds has fallen by approximately 50 basis points since April, according to Şimşek.
“With our macro indicators improving further during the disinflation process, our borrowing costs will continue to decline and the positive outlook in public finance will strengthen,” Şimşek said.
Consumer prices advanced 1.64 percent in June month-on-month, easing the monthly increase of 3.37 percent in May. The July inflation was also below market expectation of a 2.2 percent rise.
The annual inflation rate slowed from 75.45 percent to 71.6 percent, data from the Turkish Statistical Institute (TÜİK) showed earlier this week.
Şimşek hailed the inflation data, saying that “the disinflation process has begun.”
Commenting on the inflation numbers, the minister reiterated that the government would continue to implement the economic program with determination until price stability is achieved.
Source: hurriyetdailynews