Public finance deterioration accelerated in the 1990s as a result of the structural problems of the Turkish economy and reached its peak level when the financial crisis occurred in 2001.

By means of the economic program, the worsening of the trend has been completely reversed and budgetary discipline has been established.

Thanks to the recent economic program, the total public net debt stock standing at 61.5 per cent of GDP in 2002 decreased to 29.1 per cent at the end of 2007.

As for public sector, at the end of 2007, total outstanding external debts amounted to $ 69.2 billion (YTL 97.3 billion) whereas total domestic debt stock amounted to $ 189.2 billion (YTL 265.9 billion).

On the other hand, EU defined debt stock to GDP ratio has decreased to 38.8 per cent of GDP at tha end of 2007 from 73.7 per cent in 2002 and met Maastricht Criteria.

Real interest rates have plunged to single digit levels since the last quarter of 2004. Please note that real interest rates were more than 30% in the last decade. Thus, Treasury decreased its domestic borrowing costs substantially.

Public sector borrowing requirement, as a share of GDP, has decreased significantly since 2001.

EU defined General Government budget deficit to GDP ratio has also decreased significantly since 2001, and met Maastricht criteria.

The average maturity in Treasury domestic debt auctions held in 2007 surpassed the average level attained in 2006.

In 2007, the public sector primary surplus (IMF definition) was 3.5% of GDP.

In January 2007, Turkish Treasury reopened the bonds due 26 September 2016 and 17 March 2036. The bonds due 2016 and 2036 have been increased by a further USD 500 million.

In February, the first Euro denominated Global bond of the year, as part of the 2007 external borrowing programme, was issued. The bond had 12 years to maturity with a nominal amount of EUR 1.25 billion. In February, Turkish Treasury also reopened the bond due 5 June 2020. The bond has been increased by a further USD 750 million.

Turkish Treasury released one more issue in October amounting USD 1.25 billion.

Approximately USD 4.6 billion of funds have been raised via the Bond issuances in 2007.

EUROBOND ISSUANCES IN 2006, 2007, 2008

For further information, please click on the followings:

Debt stocks
Budget revenues and expenditures
Other public finances