Wednesday , March 29 2023

Reduction of Treasury Department


Savings have reduced the need for funding. Treasury breathed borrowing. Three of the six auctions scheduled for the week will not be made. A trusted environment can lower costs.

The Treasury borrowed money into the overseas markets and government-led savings move provided bailouts. The Treasury Department and the Treasury anticipate that the new economic program (YEP) will set a target for the 77 billionth savings and revenue increase package yesterday.

The Treasury announced that three out of the six bids announced next week will not be submitted, the Finance Ministry said.

After the currency shock of August, we showed the results of the unused market decision in a series of prompt responses.

Saving effect

Treasury Secretary Berat Albayra asked YEP to reduce all ministry budget spending by 30%.

As a result of the state-led initiative, savings are expected to be implemented. In 2019, the goal is to create 76 billion liters of public resources through savings and income growth.

In this figure, 60 billion TL comes from savings and 16 billion TL due to income increase measures.

Relief of foreign relations eased the borrowing by the Ministry of Finance. The USD / TL test that tested 7.23 on August 10 is now 5.47s.

Interest rate decline

After a sharp rise in benchmark interest rates, 27.95% were withdrawn to 21 levels. The 10-year bond yield declined to 15.98 from 17.71, according to the Treasury Department's announcement, and moved to 16.19.

We see that the Treasury does not want to lend at a high interest rate of 10 years. So the Treasury did not borrow at 22% interest for 10 years. This step is expected to lower interest rates and inflation. The rise in borrowing costs due to tensions in foreign relations and currency shocks will be mitigated by the Treasury as the new trend normalizes.

& # 39; Long-Term & # 39; Cancellation

The Treasury issued a 10-year CPI index bond on November 12 and a 10-year fixed coupon bond on November 13, and a 7-year floating rate bond (FRN) to reduce domestic borrowing costs and reduce interest expenses ) Will be issued. It is not smooth. Coupon payments with fixed coupon bond will be re-exported.

not needed

According to a statement from the Treasury Department, the Treasury's financial assistance program in 2018 required a 6.5 billion dollar borrowing from the overseas market with a 1.5 billion euro bond issue completed on November 7, with a total external borrowing of $ 7.7 billion. Savings taken in 2018 in the New Economy Program reduced the need for funding.

There are three bids next week.

The Treasury is preparing three bids next week.

– December 13, 2019 will be issued as a 13-month coupon-free bond first.

– October 18 2023 bonus 5 year maturity coupon bonds paying 10.05% coupons will be issued within 6 months.

– Fixed coupon bond with 11.5% coupon payment will be reissued for 6, 20 and 2 year terms.

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