Türkiye's Economy Minister Ali Babacan announced on 14 January 2005 that the country had gained firmer control over its debt load, crediting a disciplined fiscal program supported by the International Monetary Fund. Domestic borrowing rates on the local currency averaged 24.7 percent in 2004, down sharply from 62.7 percent in 2002, when Türkiye was enduring its deepest recession in decades.
Secondary-market interest rates fell below 20 percent, which Babacan called the lowest levels ever recorded for the Turkish treasury. Total borrowing in 2004 reached roughly 159.5 billion new Turkish liras (about 117 billion dollars), while total debt service came to 183.9 billion liras.
The gross public debt as a share of GDP was expected to settle at 74.5 percent, nearly five percentage points below the 2003 level. Net public debt relative to GDP was projected at roughly 64 to 65 percent, about 6.5 points lower than the prior year.
For 2005, the treasury projected total borrowing of 172.6 billion liras and debt service of 200.3 billion liras. Separately, Türkiye recently concluded a new 10-billion-dollar standby agreement with the IMF, pending parliamentary approval of draft laws covering financial services, social security, and tax administration.
Historical summary. TurkishPress restated this AFP wire report, first published in January 2005, in its own words.