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Investor interest in Türkiye is increasing, says Finance Minister Şimşek
ISTANBUL
Investors‘ interested in Türkiye continues to increase thanks to the economic program that the government implements, Minister of Finance Mehmet Şimşek said.
“Our cost of borrowing is falling as [Türkiye’s] The CDS risk premium continues to decline,” Şimşek wrote on social media platform X.
Treasury bond rates are declining in line with falling risk premiums and improving inflation expectations, the minister added.
The interest rate on the benchmark Turkish lira-denominated bond maturing in two years has fallen by approximately 1,000 basis points compared to March, while the interest rate on dollar-denominated bonds maturing in five and 10 years has fallen by approximately 50 basis points since April, according to Şimşek.
“With our macroeconomic indicators improving further during the disinflation process, our borrowing costs will continue to fall and the positive outlook on public finances will strengthen,” Şimşek said.
Consumer prices rose 1.64 percent month-on-month in June, easing a 3.37 percent monthly increase in May. July inflation also fell short of market expectations for a 2.2 percent increase.
The annual inflation rate slowed to 71.6 percent from 75.45 percent, Turkish Statistical Institute (TÜİK) data showed earlier this week.
Şimşek praised the inflation data, saying that “the disinflation process has begun.”
Commenting on the inflation figures, the minister reiterated that the government will continue to implement the economic program with determination until price stability is achieved.