Turkey: Treasury borrows nearly $215M through auction

By Gokhan Ergocun

ISTANBUL (AA) - The Turkish Treasury borrowed nearly 1.2 billion Turkish liras ($214.6 million) from domestic markets, according to an official statement Tuesday.

An auction was held for two-year fixed coupon bonds (reopen, fourth issuance), the Treasury and Finance Ministry announced.

The government bonds will be settled on Wednesday and mature on Aug. 12, 2020, while the total tender was over 11 billion Turkish liras ($2 billion) with a 10.3-percent accepted/tendered rate.

The interest rate of the 637-day bonds was accepted at a 8.99-percent term rate, with annual simple and compound interest rates of 17.98 and 18.79 percent, respectively.

On Monday, the Treasury also held two auctions and borrowed 1.96 billion Turkish liras ($360 million) from domestic markets.

On Friday, the ministry announced that it cancelled three auctions due to a high demand from international markets and austerity measures announced in the New Economy Program.