Decline in CDS proves confidence in program, says Şimşek

ISTANBUL

Türkiye’s credit debt swap (CDS) fell below 250 basis points, Finance Minister Mehmet Şimşek said, adding that this shows confidence in the government’s economic program.

The country’s CDS has dropped to its lowest level since February 2020, Şimşek wrote on social media platform X.

“While the decrease in May 2023 was an average of 49 basis points in developing countries, it was 456 basis points in our country,” he noted.

The decline in Türkiye’s CDS is one of the most concrete indicators of confidence in “our economic program and its achievements,” Şimşek said.

With the decline in CDS, access to external financing is becoming easier, and the cost of external financing is decreasing, he added.

Meanwhile, speaking at the Doha Forum 2024, Şimşek said that Türkiye has become an important global production hub, noting that the country has made substantial investments in preparation for artificial intelligence technologies.

"This includes investments in digital infrastructure such as fiber optic lines, internet access, and broadband subscriptions, as well as in human capital,” he explained.

According to the IMF's Artificial Intelligence Readiness Index covering 174 economies, Türkiye is above the average of developing countries, Şimşek said, noting that more investments should be made in data centers in the country.