Turkish Halkbank authorizes general directorate for 15 billion TL debt plan

Halkbank authorized its general directorate to issue debt instruments up to 15 billion Turkish Lira domestically
Thursday, 09 August 2018 21:17

One of the largest Turkish state-owned bank Halkbank aims to prevent capital outflow by issuing domestic bonds by authorizing its general directorate to issue debt instruments worth 15 billion Turkish Lira.

Turkish banks are raising funds by issuing bonds in foreign markets or by taking syndicated loans. In overseas markets, Turkey is evaluated as a highly risky country. With devaluated TL, the capital inflow was more difficult than in the past.

Halkbank's domestic bond issuance up to 15 billion TL is aimed for attracting foreign capital with high interest rates on TL basis or preventing money outflow.

At the same time, it is predicted that the source to be created with this instrument will be used in the private sector’s debt stock cycle, especially debt restructuring.

It is believed that other public banks may apply the same method. In this way offering higher returns to foreign capital is possible without raising policy interest rates of the Central Bank.