ISTANBUL: Trkiye’s five-year credit default swaps (CDS) dropped below 282 on Tuesday for the first time since Feb. 2021.
Trkiye’s CDS – a form of insurance for bondholders – dropped to 281.75 basis points, over a three-year low.
Economy management’s efforts to reduce uncertainties regarding the Turkish economy spurred interest in Turkish lira assets and received an international response.
While the Central Bank of Trkiye hiked the interest rates gradually to 50% from 8.5%, the economy management has also shown its determination in the fight against inflation.
Previously, Treasury and Finance Minister Mehmet Simsek noted that the growing confidence and predictability in the Turkish economy also positively impact receiving external financing.
“While there was a net portfolio outflow of $2.9 billion in the first five months of 2023, there was a net portfolio inflow of $16.8 billion in the June 2023-February 2024 period,” he added.
On Friday, Standard and Poor’s (S and P) upgraded Trkiye’s credit rating fro
m B to B+ on economic rebalancing, keeping its outlook positive.
In March, Fitch Ratings raised the country’s credit rating from a ‘B’ to a ‘B+’ and its outlook from stable to positive
In January, Moody’s revised Trkiye’s outlook to “positive” from stable, affirming its “B3” credit rating.
Source: Anadolu Agency