Demand strong for new bonds, says Nebati

ADANA

Demand has been strong for the newly introduced revenue-indexed domestic bonds, Treasury and Finance Minister Nureddin Nebati has said.

“We started to collect bids for the bonds on June 15 and the book-building period will continue next week until June 22,” Nebati said at a meeting in the southern province of Adana, reiterating that the revenue-indexed bonds are part of the instruments designed to encourage people to invest their savings in Turkish liras assets.

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

The yield of these bonds is indexed to the revenues of state-owned enterprises General Directorate of State Airports Authority (DHMİ) and General Directorate of Coast Safety (KIYEM), which are transferred to the state’s budget.

“We will continue to provide support to our citizens, without compromising on budget discipline,” the minister said, adding that the Türkiye Economic Model, which promotes the production, exports, investments and employment, is being implemented successfully.

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

“There have been speculations about the scheme’s cost on the budget. However, the FX-protected deposit scheme’s cost on the budget has been limited. And the payments made for this scheme from the budget is 21.1 billion liras since so far,” Nebati said.