Decline in Real Sector Bond Issuances and Central Bank Step

According to data from the Central Bank of the Republic of Turkey, the real sector's bond issuances declined to the level of 172.5 billion TL as of October 16. Following this drop in the bond size, which had previously reached a record level of 185.4 billion TL, and liquidity concerns in the market, new steps were taken by the CBRT and economic management.

Minister of Treasury and Finance Mehmet Şimşek had also drawn attention to a Credit Guarantee Fund-focused plan for private sector bonds in a special interview he attended on Bloomberg HT. Stating that the size of the private sector bond market is approximately 1 trillion TL, Şimşek noted that the portion maturing by the end of the year is 26.5 billion liras, that no public funds will be used, and that they could look favorably upon it if the Credit Guarantee Fund creates a credit framework from its own equity.