Treasury to pay 1 trillion in interest in 2024!

The "Treasury Financing Program," which includes developments from 2023 and projections for 2024, has been published on the Ministry of Treasury and Finance's website.

According to a report by Halktv; based on the Medium-Term Program and Central Government Budget projections, the average maturity of cash domestic borrowing, which was 70 months last year, became 65 months in the January-October period of this year. The average cost of fixed-income Turkish Lira-denominated domestic borrowing, which was 16.3 percent, was realized at the 18 percent level in the same period.

In order to expand the investor base and diversify borrowing instruments, lease certificate issuances, which were first carried out in 2012, were continued in 2023. In this context, a total of 107.4 billion liras worth of Turkish Lira-denominated lease certificates were issued in the domestic market during the period in question.

1 TRILLION OF THE 2.2 TRILLION LIRAS IS INTEREST

According to the program's 2024 projections, it is planned to carry out debt servicing amounting to 2 trillion 213.2 billion liras, consisting of approximately 1 trillion 166.3 billion liras in principal and 1 trillion 46.9 billion liras in interest, with 1 trillion 565.2 billion liras of this to be made as domestic debt service and 648 billion liras as external debt service.

It is projected that 1 trillion 262.2 billion liras of the domestic debt service will consist of payments to be made to the market, and 303 billion liras will consist of payments for sales made to public institutions through non-competitive bids.

The total of non-borrowing resources to be obtained as a result of the cash-based primary balance, privatization revenues, 2B land sale revenues, resources to be transferred from the Savings Deposit Insurance Fund, and the return of transferred and guaranteed debt, as well as cash/bank usage, is expected to be minus 281 billion liras.