Treasury Anticipates Domestic Borrowing of 2 Trillion 845.5 Billion TL by 2025

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Treasury Anticipates Domestic Borrowing of 2 Trillion 845.5 Billion TL by 2025

Foreign Exchange - The Ministry of Treasury and Finance projects a domestic borrowing of 2 trillion 845.5 billion TL in 2025.

The Ministry of Treasury and Finance has published the "Treasury Financing Program," which includes developments for 2024 and projections for 2025. Accordingly, in 2025, a total debt service of 3 trillion 241.9 billion TL is planned, comprised of 1 trillion 373.2 billion TL in principal and 1 trillion 868.7 billion TL in interest. It is anticipated that 2 trillion 385 billion TL of this debt service will be for domestic debt, while 856.9 billion TL will be for external debt service.

The domestic debt service is expected to include 2 trillion 229 billion TL from payments to be made to the market and 156 billion TL from sales to public institutions conducted via non-competitive bidding. The cash-based primary balance is projected to be -62.9 billion TL, considering privatization revenues, 2/B sale revenues, resources to be transferred from the Savings Deposit Insurance Fund, and non-debt resources generated from revolving and guaranteed loan repayments and cash/bank usage.

In 2025, it is anticipated that financing will be secured through the issuance of bonds and lease certificates amounting to 11 billion USD from international capital markets. In line with these projections, domestic borrowing of 2 trillion 845.5 billion TL is planned for 2025.

  • 2025 Borrowing Strategy - The Treasury has outlined the main components of strategic criteria to be continued in 2025. Accordingly, borrowing will predominantly be made in TL, and in terms of market diversification, issuances in other currencies will also be made depending on availability alongside the US dollar in international markets. The optimal management of interest expenses will be sought through a suitable combination of instruments and maturities, maintaining a certain level of short-term debt securities due within 12 months, and holding a strong cash reserve to minimize potential liquidity risk in cash and debt management.

Domestic borrowing transactions in 2025 will be conducted within the framework of the following issuance plan:

  • The issuance of fixed coupon "benchmark bonds" in TL will be regularly continued within market conditions.
  • Coupon and zero-coupon bonds and securities in TL, variable-rate bonds with different maturities, inflation-indexed bonds, gold bonds, and gold-backed lease certificates may be issued based on the redemption calendar and market conditions.
  • The issuance of lease certificates in TL is also planned to continue in 2025. Additional demands from market participants will be considered.
  • To address temporary mismatches between cash inflows and outflows observed monthly, short-term Treasury bills and financial instruments mentioned in the "Regulation on Financing to be Provided through Money Market Cash Transactions" may be used.
  • To ensure a balanced distribution of debt servicing across periods and enhance price efficiency in the secondary market, exchanges and buyback tenders may be conducted based on market conditions.
  • Details of the tenders will be announced to the public at least one business day before the tender day.

External borrowing transactions in 2025 will be carried out within the framework of the following issuance plan:

  • To secure financing from international capital markets, conventional bonds, lease certificates, green bonds, social bonds, and/or sustainable bonds with various maturities may be issued, depending on market conditions.
  • To ensure market diversification, issuances in other currencies will also be possible in international markets alongside the US dollar, if available.
  • To develop investor relations and strengthen the perception of our country among investors in international capital markets, meetings with international investment banks, credit rating agencies, and international investors will continue.

DISTRIBUTION OF DEBT SERVICE BY RECIPIENTS IN 2025 (1) COMPOSITION OF DEBT SERVICE IN 2025 BY CURRENCY-INTEREST (1)