By the end of March, the debt stock of the Central Bank of the Republic of Turkey (CBRT) had reached a staggering 1.16 trillion Lira ($209 billion). The figure was shared by the Ministry of Treasury and Finance on Monday, which further announced 592,8 billion Lira of the total debt stock is in Turkish currency.
Despite this, Turkish consumers’ confidence in the economy showed a strong recovery at 63.5 percent as it rose by 6.9 percent in April, from 59.4 in March, the index value is jointly calculated by the Turkish Statistical Institute (TUIK) and CBRT.
However, the general index level remains significantly below, compared to last year’s peak of 72.7, Para Analiz website reported.
In 2018, the index value recorded a high of 72.7 in July, and a low 57.6 in October.
Turkey’s ruling Justice and Development Party’s (AKP) high amount of spending during the local election campaign before 31st March and CBRT’s interference of London swap market to keep the Lira stable are some of the actors that negatively affected consumer confidence, Para Analiz analyzed.
Berat Albayrak, the Treasury and Finance Minister, came up with a reform package that is clearly failing to regain investors’ confidence. Albayrak met about 400 international investors at a Washington hotel ahead of the International Monetary Fund (IMF) and World Bank spring meetings on 11 April.
Many investors found Albayrak’s package lacking in detail. “I don’t think he persuaded anybody, it did not go well,” an anonymous investor told Reuters at a conference hosted by investment bank JPMorgan. Albayrak is President Recep Tayyip Erdogan’s son-in-law.
The Turkish Treasury borrowed some 3.22 billion Turkish Liras ($552 million) from domestic markets through action. “The total tender for the bonds was 4.63 billion Turkish Liras ($794 million) with a 69.5 percent accepted/tendered rate,” the Treasury and Finance Ministry announced.