The Turkish Treasury finalized a Japanese-yen market bond issue transaction for an amount of 60 billion yen ($533 million), a coupon rate of 1.81 percent and a maturity of three years, it said in a statement on Friday.
“With this transaction, the amount of funds that has been raised from the international capital markets in 2017 has reached a total of approximately $9.7 billion,” the treasury said.
The treasury also said “the strong interest from investors is an important indication of positive investor perception towards Turkey in the Japanese yen market, a market of strategic importance for the Treasury’s investor diversification goals”.
This transaction also contributes to a further advance of the ongoing economic cooperation between Turkey and Japan, it added.
Turkish banking sector to stay resilient: Central Bank
Turkish banking sector will remain resilient against global risks since it has a strong capital base, stable asset quality and adequate level of liquid assets, according to the Central Bank Thursday."Despite the positive outlook in the global economy and financial markets, risks related to the upcoming period remain intact.“The developments in the monetary policies of advanced countries, global geopolitical risks and political developments in the Euro Area are among the possible factors of fragility for the financial system," the bank said in its November financial stability report.It noted that the recovery in the global economy continued since its previous Financial Stability Report released in May."In Turkey, thanks to the macro prudential policies that have been implemented in tandem with public financial incentives and support, credit growth has exhibited a stronger outlook than in previous years and economic activity has accelerated," it explained.The bank's report said strong outlook in economic activity continued in the third quarter.Turkey’s economy grew 5.2 percent in the first quarter of this year and 5.1 percent in the second quarter, compared with the same periods in 2016, according to the Turkish Statistical Institute (TurkStat).Profitability of firms increased, liquidity indicators improved and balance sheets remained robust on the back of a strong growth performance of second quarter of 2017, the bank said."The banking sector preserves its strong liquidity position against possible shocks," it said.The report showed the banks' liquid assets in gold and foreign exchange that they held in the Central Bank under the framework of the Reserve Options Mechanism facility had recently increased."Despite the recent increase in credit growth, strong growth in deposits offers banks an additional protection for their liquidity positions and supports credit supply," it said.The bank noted that asset quality of the banking sector is strong."With the revitalization of the credit channel and the pick-up in economic activity, the decreasing amount of additions to Non-Performing Loans (NPLs) and write-offs as well as the rising amount of receiving compared to the previous report period contributed to the preservation of asset quality."It added the banking sector sustains its strong capital structure.Profitability developments also support the equity and capital adequacy levels in the banking sector, it also said.
Turkish exports rise 9 percent in October
Turkish exports reached $13.9 billion in October, rising 9 percent year-on-year, the Turkish Statistical Institute (TurkStat) announced Thursday.Turkey's imports were also up in the same period, increasing by 25 percent to $21.3 billion, TurkStat said.The country's foreign trade deficit totalled $7.3 billion in October, marking an increase of 73.9 percent compared with the same month last year.Exports to the EU, the country's main trading partner, went up 11.4 percent to $6.9 billion, with Germany being the largest export market with $1.45 billion.Germany was followed by the U.K with $890 million, U.S. with $771 million and Italy with $746 million.Most imports came from China ($2.11 billion) followed by Germany ($2.33 billion), Russia ($1.793 billion) and Italy ($1.79 billion).- First 10 monthsTurkey's exports in the first 10 months rose 10.3 percent, totalling $129 billion, according to the figures.Imports, on the other hand, stood at $190.2 billion, marking an increase of 16 percent in the same period.The foreign trade deficit also rose 32.1 percent year-on-year to $61.2 billion, TurkStat showed.
Turkey looks forward to 2018 customs union deal update
Turkey hopes an update to the customs union deal will be on the agenda of the first European Council meeting due in the spring of 2018, Economy Minister Nihat Zeybekci said on Wednesday."Majority of EU member countries, 25 or 26, have the opinion that updating customs union deal is firstly in favor of the EU then Turkey.“They are supporting Turkey so that this positive platform will not get spoiled."Regarding the U.K.'s Brexit, Zeybekci said the U.K was Turkey’s second biggest trading partner after Germany. "We are approaching the trade volume target of $20 billion," he said.Zeybekci said both countries have carried out joint studies regarding Brexit process.He said there was a framework to deal with the post Brexit situation and Turkish technical teams had carried out their work in this regard swiftly."Official negotiations was started on Nov. 9. Both sides have carried out studies to prevent any gap that may occur after Brexit," he added.