Download public debt management report - Undersecretariat of Treasury

Republic of Turkey
Prime Ministry
Undersecretariat of Treasury
PUBLIC DEBT MANAGEMENT REPORT
February 2005
This report has been drawn up in accordance with Article 14 of Law No. 4749 on the
Regulation of Public Financing and Debt Management. This issue of the Report
contains the developments and assessments regarding the period of JanuaryDecember 2004, and does not contain developments in the following periods.
Information contained in this report can be used provided that the source is cited.
For further information:
(312) 212 9045
(312) 212 8911
(312) 204 6167-204 6157
e-mail: [email protected]
CONTENTS
CONTENTS............................................................................................................................... i
TABLES ................................................................................................................................... iv
GRAPHS .................................................................................................................................. vi
1 CONSOLIDATED BUDGET............................................................................................ 1
2 DEBT MANAGEMENT.................................................................................................... 6
2.1 BORROWING LIMIT.................................................................................................... 6
2.2 DOMESTIC DEBT MARKETS .................................................................................... 7
2.2.1 DOMESTIC BORROWING ........................................................................................... 7
2.2.2 DOMESTIC DEBT SERVICE........................................................................................ 7
2.2.3 CURRENCY, INTEREST-TYPE AND MATURITY STRUCTURE OF DOMESTIC
BORROWING ........................................................................................................................... 9
2.2.4 SECONDARY BOND MARKETS .............................................................................. 12
2.3 EXTERNAL DEBT MARKETS .................................................................................. 18
2.4.1 PROGRAM FINANCING ............................................................................................ 19
2.4.1.1
International Capital Markets.................................................................................... 19
2.4.1.2
International Institutions ........................................................................................... 21
2.4.2 PROJECT FINANCING ............................................................................................... 23
2.4.3 EXTERNAL DEBT SERVICE ..................................................................................... 27
2.4.4 SECONDARY MARKETS........................................................................................... 29
2.4.5 CREDIT RATING......................................................................................................... 31
3 DEBT STOCK .................................................................................................................. 33
3.1 CHANGES IN DEBT STOCK ..................................................................................... 33
i
3.1.1 DOMESTIC DEBT ....................................................................................................... 33
3.1.2 EXTERNAL DEBT....................................................................................................... 34
3.2 STRUCTURE OF CONSOLIDATED BUDGET DEBT STOCK ............................ 36
3.2.1 DOMESTIC DEBT ....................................................................................................... 37
3.2.2 EXTERNAL DEBT....................................................................................................... 38
4 DEBT SERVICE PROJECTION ................................................................................... 40
5 GRANTS ........................................................................................................................... 44
5.1 GRANTS AWARDED .................................................................................................. 44
5.2 GRANTS RECEIVED .................................................................................................. 44
6 CONTINGENT LIABILITIES....................................................................................... 46
6.1 REPAYMENT GUARANTEES................................................................................... 46
6.1.1 TREASURY GUARANTEED EXTERNAL DEBT STOCK ..................................... 46
6.1.2 REPAYMENT GUARANTEES ISSUED .................................................................... 49
6.2 INVESTMENT GUARANTEES ................................................................................. 50
6.3 REPAYMENTS FOR CONTINGENT LIABILITIES .............................................. 50
6.4 REPAYMENT PROJECTION OF TREASURY GUARANTEED DEBT .............. 55
7 FINANCIAL RECEIVABLES ...................................................................................... 57
7.1 TREASURY RECEIVABLES STOCK....................................................................... 57
7.2 OUTSTANDING OVERDUE RECEIVABLES......................................................... 60
7.3 PROJECTED RECEIVABLES ................................................................................... 63
7.4 COLLECTIONS............................................................................................................ 65
8 RISK MANAGEMENT................................................................................................... 69
8.1 BENCHMARKS FOR 2005.......................................................................................... 69
8.2 AVERAGE TIME TO MATURITY OF STOCK....................................................... 70
ii
8.2.1 AVERAGE TIME TO MATURITY OF DOMESTIC DEBT STOCK........................ 70
8.2.2 AVERAGE TIME TO MATURITY OF EXTERNAL BOND STOCK ...................... 71
8.3 DURATION ................................................................................................................... 71
8.3.1 DURATION OF TL-DENOMINATED CASH DOMESTIC DEBT STOCK............. 71
8.3.2 DURATION OF EXTERNAL BOND STOCK............................................................ 72
8.4 REAL INTEREST RATE OF DOMESTIC DEBT STOCK ..................................... 73
8.5 PUBLIC SECTOR NET DEBT STOCK ..................................................................... 74
APPENDICES ........................................................................................................................ 76
APPENDIX 1: DEFINITIONS ............................................................................................. 76
APPENDIX 2: METHODOLOGY ....................................................................................... 82
APPENDIX 2: PUBLIC FINANCE DATA ......................................................................... 89
iii
TABLES
Table 1: Budget Realization .................................................................................................... 1
Table 2: Budget Realization .................................................................................................... 3
Table 3: Consolidated Budget Financing ............................................................................... 5
Table 4: 2004 Net Borrowing Limit........................................................................................ 6
Table 5: 2004 Net Borrowing .................................................................................................. 6
Table 6: Domestic Borrowing.................................................................................................. 7
Table 7: Domestic Debt Service ............................................................................................ 8
Table 8: Currency and Interest Rate Composition of Domestic Market Borrowing ....... 9
Table 9: The Composition of Domestic Debt Stock Held by the Market ......................... 16
Table 10: Maturity Composition of Domestic Debt Securities Held by Retail Investors in
Bank Accounts ....................................................................................................................... 17
Table 11: External Debt Disbursements for Consolidated Budget ................................... 18
Table 12: Eurobond Issuance In 2004 .................................................................................. 19
Table 13: Disbursements of World Bank Credits ............................................................... 23
Table 14: Distribution of Project Credits by Sector ........................................................... 24
Table 15: Distribution of External Project Credits Disbursements by Lenders .............. 24
Table 16: Repayments of Consolidated Budget External Debt in 2004 ........................... 28
Table 17: Currency Composition of Repayments of Consolidated Budget ...................... 28
Table 18: Yield Comparison with Peer Group Countries .................................................. 31
Table 19 : Developments in the Credit Rating of Turkey .................................................. 32
Table 20: Consolidated Budget Debt Stock ......................................................................... 33
Table 21: January-December Consolidated Budget Domestic Debt Stock Change........ 34
Table 22: October-December Consolidated Budget Domestic Debt Stock Change......... 34
Table 23: January-December Consolidated Budget Foreign Debt Stock Change ........... 35
Table 24: October-December Consolidated Budget Foreign Debt Stock Change ........... 35
Table 25: Currency Composition of Consolidated Budget Debt Stock............................. 36
Table 26: Currency Composition of Consolidated Budget External Debt Stock............. 39
Table 27: Grants Awarded by Treasury in 2004................................................................. 44
Table 28: Grants Received by Treasury in 2004 ................................................................ 45
Table 29: Breakdown of the Grants Received and Used by Treasury in 2004................. 45
Table 30: Treasury Guaranteed External Debt Stock ........................................................ 46
Table 31: Treasury Guaranteed Debt Issued in 2004 ......................................................... 49
iv
Table 32: Risk Account ......................................................................................................... 51
Table 33: Treasury Receivables Stock ................................................................................. 57
Table 34: Breakdown of Treasury Receivables Stock by Sources..................................... 58
Table 35: Breakdown of Treasury Receivables Stock ........................................................ 60
Table 36: Outstanding Overdue Receivables ...................................................................... 60
Table 37: Breakdown of Outstanding Overdue Receivables by Source ........................... 61
Table 38: The Stock of Projected Receivables..................................................................... 63
Table 39: Breakdown of Projected Receivables by Source ................................................ 64
Table 40: Interest Composition of Projected Receivables .................................................. 65
Table 41: Breakdown of Collections by Borrower.............................................................. 66
Table 42: Breakdown of Collections by Source................................................................... 67
Table 43: Breakdown of Beneficiary Payments by Source ................................................ 67
Table 44: Breakdown of Collection by Type of Payment ................................................... 67
Table 45: Breakdown of Collection by Accounts ................................................................ 68
Table 46: Average Time to Maturity of Domestic Debt Stock ........................................... 70
Table 47: Average Time to Maturity of External Bond Stock .......................................... 71
Table 48: Annual Compounded Real Interest of Total Domestic Debt Stock
Jan.-Dec. 2004 ........................................................................................................................ 74
Table 49: Public Sector Net Debt Stock .............................................................................. 74
Table 50: Public Sector Net Debt Stock ............................................................................... 90
Table 51: FX and Interest Rate Composition of Consolidated Budget Debt Stock ......... 91
Table 52: Holders of Consolidated Budget of Debt Stock ................................................. 92
Table 53: Domestic Debt Stock 1990-2004 .......................................................................... 93
Table 54: Outstanding External Debt By Borrower ........................................................... 94
Table 55: Outstanding External Debt By Lender ............................................................... 95
Table 56: Outstandig Bond Stock ......................................................................................... 96
Table 57: Exchange Rate Effect and Currency Composition of Outstanding External
Debt.......................................................................................................................................... 97
Table 58: Treasury Guaranteed External Debt Stock ........................................................ 99
Table 59: Payments Undertaken Due to Treasury Guarantees ....................................... 102
Table 60: Projects That Has Been Guaranteed By the Treasury .................................... 104
Table 61: The Stock of Receivables as of the end of 2004 ............................................... 105
Table 62: Outstanding Overdue Receivables..................................................................... 106
Table 63: Collections in 1997- 2004 ................................................................................... 107
v
Table 64: 1990- 2003 Consolidated Budget Realizations ................................................. 109
Table 65: 1990- 2003 Consolidated Budget Realizations ................................................. 110
GRAPHS
Graph 1: Breakdown of the Consolidated Budget Financing .............................................. 5
Graph 2: Domestic Debt Service in 2004 ............................................................................... 9
Graph 3: Breakdown of Domestic Borrowing by Issue Type in 2003 and 2004............... 10
Graph 4: Weighted Cumulative Average Maturity of Domestic Borrowing Raised
Through The Market ............................................................................................................. 11
Graph 5: Weighted Average Cost of Zero-Coupon TL-Denominated Domestic
Borrowing ............................................................................................................................... 11
Graph 6: Weighted Average Cost of USD-Denominated Domestic Borrowing ............... 12
Graph 7: Interest Rates in the Secondary Markets of Government Securities ............... 13
Graph 8: Daily Data for the ISE Bonds and Bills Outright Purchases and Sales Market
and Interest Rates Determined in Treasury Auctions ........................................................ 14
Graph 9: The Purchase Performance of Primary Dealers in the Auctions ...................... 15
Graph 10: Interest Rates and Total Transaction Volume in the Secondary Market for
Government Securities........................................................................................................... 15
Graph 11: Percentage Distribution of Domestic Debt Securities Held by Retail Investors
in Bank Accounts.................................................................................................................... 17
Graph 12: Percentage Distribution of Domestic FX Debt Securities Held by Retail
Investors in Bank Accounts................................................................................................... 18
Graph 13: Risk Premiums Paid for International Bond Issuance..................................... 20
Graph 14: Repayments of Consolidated Budget External Debt in 2004........................... 27
Graph 15: Currency Composition of Repayments of Consolidated Budget..................... 29
Graph 16: Secondary Market Performance of USD Denominated Eurobonds ............... 30
Graph 17: Secondary Market Performance of Euro Denominated Eurobonds .............. 30
Graph 18: EMBI+ and EMBI+ Turkey Subindex .............................................................. 31
Graph 19: Currency Composition of Consolidated Budget Debt Stock ........................... 37
Graph 20: Interest Composition of Consolidated Budget Debt Stock .............................. 37
Graph 21: Currency Composition of Consolidated Budget DomesticDebt Stock ........... 38
Graph 22: Interest Composition of Consolidated Budget Debt Stock .............................. 38
vi
Graph 23: Currency Composition of Consolidated Budget External Debt Stock ........... 40
Graph 24: Interest Composition of Consolidated Budget External Debt Stock .............. 40
Graph 25: Pre-Determined Domestic Debt Payments for 2005 ........................................ 41
Graph 26: TL/FX Composition of Pre-Determined Domestic Debt Payments for 2005 . 41
Graph 27: Projection of Consolidated Budget External Debt Repayments in 2005 ........ 42
Graph 28: Projection of Consolidated Budget External Debt Payment .......................... 43
Graph 29: Treasury Guaranteed External Debt Stock by Lender.................................... 47
Graph 30: Institutional Breakdown of Treasury Guaranteed Debt Stock ....................... 48
Graph 31: Institutional Breakdown of the Treasury Guaranteed Debt Stock of the SOEs
by the end of September 2004 ............................................................................................... 48
Graph 32: Institutional Breakdown of the Treasury Guaranteed Debt Stock of the Local
Administrations by the end of September 2004................................................................... 48
Graph 33: Currency and Interest Rate Composition ......................................................... 49
Graph 34: Treasury Guarantees By Lender........................................................................ 50
Graph 35: Proportion of Returns to Payments .................................................................. 52
Graph 36: Principal-Interest Breakdown of Projected Guaranteed Debt Service ......... 55
Graph 37: Guaranteed External Debt Servicing Projections by Budget Categories....... 56
Graph 38 :Breakdown of Receivables Stock by Budget Type ........................................... 58
Graph 39: Breakdown of Receivables Stock by Sources .................................................... 59
Graph 40: Breakdown of Receivables Stock by Institutions.............................................. 59
Graph 41: Breakdown of Outstanding Overdue Receivables Stock by Budget Type ..... 61
Graph 42: Breakdown of Outstanding Overdue Receivables Stock by Sources.............. 62
Graph 43: Outstanding Overdue Receivables Stock .......................................................... 62
Graph 44: Breakdown of Projected Receivables by Budget Type..................................... 63
Graph 45: Breakdown of Projected Receivables by Source............................................... 64
Graph 46: Interest Composition of Projected Receivables ................................................ 65
Graph 47: Breakdown of Collections by Institutions ........................................................ 66
Graph 48: Duration of the TL-Denominated Cash Domestic Debt Stock ....................... 72
Graph 49: Duration of the External Bond Stock ............................................................... 73
Graph 50: Public Sector Net Debt Stock ............................................................................. 75
vii
1
1 CONSOLIDATED BUDGET
In 2004,
consolidated
budget revenues
were
TL109.9
quadrillions,
representing an increase by 18.7 percent in nominal and 7.3 percent in real terms over
the 2003 figure. The ratio of the consolidated budget revenues to GNP has been 25.9
percent in 2004.
Consolidated budget expenditures were TL140 quadrillions,
representing an increase by 5.6 percent in nominal and a decrease by 4.6 percent in
real terms over the 2003 figure. The ratio of budget expenditures to GNP has been
33.1 percent in 2004 (Table 1, Table 2).
Table 1: Budget Realization
CONSOLIDATED BUDGET REVENUES
Tax Revenues
Direct Taxes
Indirect Taxes
Other
Non-Tax Revenues
Capital Revenues
Grants and Aid
Collection of Receivables
Annexed Budget
Trillion TL
Realization /
Program (%)
Trillion TL
Realization /
Program (%)
GNP Ratios (%)
October December
2004
October December
2004
January December
2004
January December
2004
2004
30,109
28.92
109,887
105.55
25.91
25,242
28.40
90,093
101.35
21.24
8,194
30.82
28,036
105.45
6.61
17,048
27.36
62,057
99.60
14.63
4,867
31.99
19,794
130.08
4.67
4,225
30.36
17,065
122.65
4.02
52
10.31
161
32.00
0.04
108
-
755
-
0.18
0
0.00
0
0.00
0.00
483
60.36
1,813
226.64
0.43
CONSOLIDATED BUDGET EXPENDITURES
39,342
26.24
140,200
93.50
33.06
PRIMARY EXPENDITURES
28,029
33.41
83,712
99.78
19.74
Personnel
6,994
24.49
28,948
101.36
6.83
Social Security Contributions
1,194
32.92
4,023
110.89
0.95
Purchase of Goods and Services
7,316
60.72
12,560
104.24
2.96
11,313
17.13
56,488
85.52
13.32
Interest Payments
Domestic Debt
9,656
16.55
50,053
85.81
11.80
Foreign Debt
1,545
22.65
6,057
88.81
1.43
112
12.46
379
42.10
0.09
6,670
24.29
27,659
100.71
6.52
0.09
Discount and Short Term Cash Operations
Current Transfers
SEE Duty Losses
Transfer to Social Security Institutions
Agricultural Subsidies
Other
90
25.94
381
109.38
4,413
22.67
18,893
97.06
4.45
376
11.70
3,079
95.77
0.73
1.25
1,790
40.37
5,306
119.64
Capital Expenses
4,737
73.92
7,972
124.40
1.88
Capital Transfers
265
65.59
437
108.14
0.10
Lending
852
25.57
2,075
62.32
0.49
0
0.00
37
1.81
0.01
BUDGET BALANCE
-9,233
20.14
-30,313
66.13
-7.15
PRIMARY BALANCE
2,080
10.29
26,175
129.49
6.17
Contingencies
GNP
424,129
Source: Public Accounts Bulletin, Ministry of Finance
1
As a result of the performance in revenues and the expenditures compared to
the program figures, budget deficit has realized at TL30.3 quadrillions, which is
lower than the program figure.
In the period of January-December 2004, the primary surplus has reached
TL26.2 quadrillions, which is over the program target by 29.5 percent (Table 1).
While the interest expenditures have decreased by 12.8 percent, the non-interest
expenditures have increased by 2 percent in real terms, in 2004. The increase in
primary surplus has been 28.6 percent, compared to the same period of the last year
(Table 2).
In the last quarter of 2004, consolidated budget revenues and expenditures
stood at TL30.1 quadrillions and the TL39.3 quadrillions, respectively. As a result of
above mentioned developments on the revenues and expenditures, the consolidated
budget deficit reached TL9.2 quadrillions. 27.4 percent of total revenues and 28.1
percent of total expenditures realized in the last quarter of 2004.
The primary
surplus of this quarter was TL2.1 quadrillions that was 10.3 percent of total primary
surplus target (Table 1).
In the last quarter of 2004, while the budget revenues increased by 3.7 percent,
budget expenditures decreased by 2.7 percent in real terms over the figures of 2003.
In the same period, whereas non-interest expenditures increased by 3 percent,
interest expenditures decreased by 14.3 percent in real terms. As a result of the
developments on the revenues and expenditures, the increase in primary surplus has
realized 14 percent in real terms (Table 2).
2
Table 2: Budget Realization
(Change, in trillion TL)
October December 2003 *
REVENUES
Tax Revenues
Non-Tax Revenues
EXPENDITURES
PRIMARY EXPENDITURES
INTEREST EXPENDITURES
PRIMARY BALANCE
26,476
22,147
4,328
36,855
24,811
12,044
1,665
January December 2003 *
REVENUES
Tax Revenues
Non-Tax Revenues
EXPENDITURES
PRIMARY EXPENDITURES
INTEREST EXPENDITURES
92,618
76,684
15,934
132,823
74,213
58,609
October December 2004
30,109
25,242
4,867
39,342
28,029
11,313
2,080
January December 2004
109,887
90,093
19,794
140,200
83,712
56,488
Nominal
Change (%)
13.72
13.97
12.45
6.75
12.97
-6.07
24.95
Nominal
Change (%)
18.65
17.49
24.22
5.55
12.80
-3.62
Real Change**
(%)
3.71
3.94
2.54
-2.65
3.02
-14.34
13.95
Real Change ***
(%)
7.29
6.24
12.33
-4.55
2.00
-12.84
PRIMARY BALANCE
18,405
26,175
42.22
28.61
(*) Tax rebates (except tax rebates for pensioners) of the year 2003 were substracted from both Revenues and Expenditures in order to harmonize
those figures with 2004 Analytic Budget System.
(**) Deflated by CPI.
9.66%
October-December 2004 Average CPI Index / October-December 2003 Average CPI Index =
(***) Deflated by CPI.
10.58%
January-December 2004 Average CPI Index / January-December 2003 Average CPI Index =
3
Program Defined Primary Balance1
In 2004, the program defined primary balance increased by 24.1 percent compared to 2003 figure.
Trillion TL
2003(*)
2004
100,250
1,242
39
0
0
175
109,887
3,540
0
0
1,116
250
2. Program Defined Consolidated Budget Revenues (1-a-b-c-d-e)
98,794
104,981
3. Consolidated Budget Primary Expenditures (Public Accounts Bulletin)(*)
f. Risk Account (-)
g. Difference of Cash Transfers to Social Security Institutions (+)
81,846
925
306
83,712
485
-54
4. Program Defined Consolidated Budget Primary Expenditures (3-f+g)
81,227
83,173
18,405
26,175
17,567
21,808
1. Consolidated Budget Revenues (Public Accounts Bulletin)
a. Interest Receipts (-)
b. Central Bank Profit & Revaluation (-)
c. Privatization (-)
d. Dividend Payments from State Banks (-)
e. Carry Over from Special Revenues (-)
Primary Balance (Public Accounts Bulletin) (1-3)
Program Defined Primary Balance (2-4)
(*) Final figures.
NOT: In 2003, tax rebates are included in expenditures, and budget revenues are recorded on a gross basis. In
2004, tax rebates are deducted from revenues, in lieu of expenditures as in 2003, and recorded on a net basis. Therefore, a
comparison has to be done between primary balances but not between revenues and expenditures of following years.
In 2004, the financing requirement shrunk to TL30.4 quadrillions compared to
its 2003 figure by TL43.1 quadrillions (Table 3).
1
For further information on the program defined primary balance see the Public Debt Management Report dated
February 2004.
4
Table 3: Consolidated Budget Financing
(in trillion TL)
BUDGET BALANCE
DEFERRED PAYMENTS
OTHER DEFERRED PAYMENTS
ADVANCES
CASH BALANCE
FINANCING
BORROWING (Net)
FOREIGN BORROWING (Net)
Receipts
Payments
DOMESTIC BORROWING (Net)
Receipts
Payments
G-BONDS (Net)
Receipts
Payments
T-BILLS (Net)
Receipts
Payments
RECEIPTS FROM ON-LENDING
CURRENCY / DEPOSIT AND OTHER TRANSACTIONS
2003
2004
-40,204
-30,313
-247
-786
-1,839
-170
2,940
-2,874
-43,076
-30,418
43,076
30,418
44,304
1,420
11,907
-10,486
42,884
148,762
-105,878
54,856
93,064
-38,208
-11,973
55,697
-67,670
1,264
-2,492
33,831
3,072
12,876
-9,804
30,759
158,114
-127,355
25,900
96,536
-70,636
4,859
61,578
-56,719
943
-4,356
Although the share of the foreign borrowing in the budget financing has
increased to 10.1 percent in 2004 from 3.3 percent in 2003, the main financing source
has been the domestic borrowing by 101.1 percent, in 2004 (Graph 1).
Graph 1: Breakdown of the Consolidated Budget Financing (in percent)
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
-20.00
2003
-40.00
Foreign Borrow ing
G-Bonds
2004
T-Bills
Receipts f rom On-Lending
5
Currency / Deposit and Other Transactions
2 DEBT MANAGEMENT
2.1 BORROWING LIMIT
The annual borrowing limit is defined as the difference between the total
initial appropriations and the estimated revenues indicated in the budget law
(Article 5 of Law no. 4749 pertaining to “Public Financing and Debt Management”).
For the year 2004, a net borrowing limit of TL45.8 quadrillion TL was ascertained
(Table 4).
Table 4: 2004 Net Borrowing Limit
(Quadrillion TL)
Estimated Budget Incomes
Initial Budget Appropriations
Borrowing Limit
104.1
149.9
45.8
In 2004, net domestic borrowing and net external borrowing reached TL30.8
quadrillion and TL3.1 quadrillion, respectively, amounting a total net borrowing of
TL33.8 quadrillion. As a result, total net borrowing realized under the borrowing
limit (Table 5). In this period, the falling of borrowing interest rates, the lengthening
of borrowing maturities, and the declining of foreign exchange rates reduced cash
interest payments with regard to expectations and in this context, borrowing
requirement realized under the borrowing estimations held at the beginning of the
year.
Table 5: 2004 Net Borrowing
(Quadrillion TL)
Net Borrowing
Net Domestic Borrowing
Borrowing
Re-Payment
Net External Borrowing
Borrowing
Re-Payment
6
33.8
30.8
158.1
127.4
3.1
12.9
9.8
2.2 DOMESTIC DEBT MARKETS
2.2.1
DOMESTIC BORROWING
In the period of October–December 2004, an amount of TL43.6 quadrillion
domestic borrowing was realized, thus a total of TL160.4 quadrillion domestic
borrowing was undertaken for the entire year of 2004. TL148.6 quadrillion (93
percent) of domestic borrowing was comprised of borrowing through auctions and
direct sales in 2004 (Table 6).
Table 6: Domestic Borrowing (Trillion TL) (*)
155,879.0
117,704.4
17,063.8
7,250.3
5,989.2
7,075.0
796.3
Jan-March
41,968.1
38,035.0
0.0
1,516.1
2,417.0
0.0
0.0
April-June
33,746.3
29,757.7
0.0
2,184.8
1,803.8
0.0
0.0
2004
July-Sept
41,091.7
40,329.0
0.0
762.7
0.0
0.0
0.0
Oct-Dec
43,618.6
40,501.8
0.0
775.9
0.0
2,340.9
0.0
Jan-Dec
160,424.7
148,623.4
0.0
5,239.6
4,220.8
2,340.9
0.0
148,804.0
41,968.1
33,746.3
41,091.7
41,277.7
158,083.8
2003
DOMESTIC BORROWING (**)
Auction, TAP, Public Offer, Direct Placement
Cumposury Saving Scheme
Switching Auctions+Post auction Switchng
Restructuring of Securities Issued to Public Banks
Private Placement Onlent
Private Placement
For Info: Borrowing excluding Private Placement Onlent
(*) Provisional
(**) Excluding FX Differences.
In the year 2004, a total amount of TL5.2 quadrillion of government bonds
issued through swap auctions and post-auction switching transactions, and TL775.9
trillion of this amount was realized in the period October – December (Table 6).
In the last quarter of 2004, there was not any domestic bond issued for the
purpose of restructuring the securities held by public banks. In 2004, total amount of
securities issued for this purpose has been TL4.2 quadrillion.
In October 2004, a private placement was on-lent to Savings Deposit Insurance
Fund (SDIF) in an amount of TL2.3 quadrillion for the transfer of Pamukbank to
Halkbank, while no private placement securities were issued in 2004.
2.2.2
DOMESTIC DEBT SERVICE
In the period of October – December 2004, TL44 quadrillion of domestic debt
payment was realized. Within this total, the principal and interest payments has been
TL34.3 quadrillion and TL9.6 quadrillion respectively. An amount of TL35.7
quadrillion of domestic debt payment consisted of repayments of borrowings
through auctions, TAP, public offerings and direct sales; TL1,2 quadrillion consisted
7
of early redemptions to Compulsory Savings Fund (CSF); TL0.8 quadrillion consisted
of swap transactions; and the rest consisted of payments for government bonds
issued as private placement(Table 7).
Table 7: Domestic Debt Service (Trillion TL)
107,072.8
81,804.1
10,914.6
5,125.4
3,303.4
2,956.3
2,969.1
Jan-March
31,527.0
26,986.4
930.8
1,375.5
1,671.9
531.1
31.3
April-June
29,632.0
23,692.6
1,010.9
1,718.4
1,319.0
764.0
1,127.1
2004
July-Sept
33,805.1
31,531.2
965.8
697.4
0.0
610.7
0.0
Oct-Dec
34,307.7
28,262.2
959.7
712.2
0.0
4,373.6
0.0
Jan-Dec
129,271.9
110,472.3
3,867.2
4,503.6
2,991.0
6,279.3
1,158.4
105,855.1
31,427.0
27,785.1
33,805.1
34,307.7
127,324.9
DOMESTIC DEBT INTEREST PAYMENT (***)
Auction, TAP, Public Offer, Direct Placement
Cumposury Saving Scheme
Switching Auctions+Post auction Switchng
Restructuring of Securities Issued to Public Banks
Private Placement Onlent
Private Placement
52,636.0
25,219.1
4,002.2
2,124.9
2,685.9
1,295.5
17,308.4
13,039.8
9,551.2
124.2
197.0
745.1
273.9
2,148.4
13,393.6
9,282.3
169.1
421.7
484.8
683.4
2,352.3
13,972.0
11,188.9
184.2
61.6
0.0
445.7
2,091.6
9,647.5
7,481.5
250.3
62.7
0.0
146.9
1,706.1
50,052.9
37,504.0
727.8
743.0
1,229.8
1,549.9
8,298.3
TOTAL DOMESTIC DEBT SERVICE
Auction, TAP, Public Offer, Direct Placement
Cumposury Saving Scheme
Switching Auctions+Post auction Switchng
Restructuring of Securities Issued to Public Banks
Private Placement Onlent
Private Placement
159,708.8
107,023.2
14,916.8
7,250.3
5,989.2
4,251.8
20,277.5
44,566.8
36,537.6
1,055.0
1,572.6
2,417.0
805.0
2,179.6
43,025.6
32,974.9
1,180.0
2,140.1
1,803.8
1,447.4
3,479.4
47,777.1
42,720.1
1,150.0
759.0
0.0
1,056.4
2,091.6
43,955.2
35,743.7
1,210.0
774.9
0.0
4,520.4
1,706.1
179,324.7
147,976.3
4,595.1
5,246.7
4,220.8
7,829.2
9,456.7
2003
DOMESTIC DEBT PRINCIPAL PAYMENT
Auction, TAP, Public Offer, Direct Placement
Cumposury Saving Scheme
Switching Auctions+Post auction Switchng
Restructuring of Securities Issued to Public Banks
Private Placement Onlent
Private Placement
For Info: Borrowing excluding Private Placement Onlent
(*) Provisional
(**) Include the bond remittance of TL100 trillion of SDIF in January 2004 and TL1.85 quadrillion of Ziraat Bank in June 2004.
These amounts can not be seen in budget figures.
(***) Because of the periodical differences in the accounting records, principal payments may show differences from the figures
at Table-3.
(****) Excluding General and Discount Expenses.
In 2004, TL179.3 quadrillion of domestic debt service was realized. Of this,
TL129.3 quadrillion consisted of principal and TL50.1 quadrillion of interest
payments. Hence, due to the decrease in interest rates, the share of interest payments
in domestic debt service has fallen from 33 percent in 2003 to 28 percent in 2004
(Graph 2, Table 7).
8
Graph 2: Domestic Debt Service in 2004
Interest
28%
Principal
72%
2.2.3
CURRENCY, INTEREST-TYPE AND
MATURITY STRUCTURE OF
DOMESTIC BORROWING
In 2004, the shares of fixed and floating rate securities in total borrowing
through direct sales and auctions, has been 84 percent and 16 percent respectively.
While 90.3 percent of the total amount of borrowing via direct sales and auctions
consisted of TL-denominated borrowing, the share of foreign exchange denominated
borrowing was 9.7 percent (Table 8).
During the last quarter of 2004, the shares of fixed and floating rate securities
in total borrowing via direct sales and auctions, has been 92.1 percent and 7.9 percent
respectively. While 83.2 percent of the borrowing via direct sales and auctions in this
period has been TL-denominated, 16.8 percent consisted of foreign exchangedenominated borrowings.
Table 8: Currency and Interest Rate Composition of Domestic Market Borrowing (%)
2003
Fixed Rate
Jan-March
2004
July-Sept
April-June
Oct-Dec
Jan-Dec
94.0
75.4
88.3
81.1
92.1
84.0
6.0
24.6
11.7
18.9
7.9
16.0
TL Denominated
87.2
94.3
98.2
87.7
83.2
90.3
FX Denominated
12.8
5.7
1.8
12.3
16.8
9.7
Floating Rate
9
In 2004, a large amount (76 percent) of domestic borrowing via auctions and
direct sales consisted of TL-denominated discounted bonds auctions. The share of
floating rate securities in total domestic borrowing from the market, increased to 11.2
percent in 2004, from its 5.9 percent level in 2003. The share of fixed coupon bonds
remained at 3 percent in 2004 (Graph 3).
Graph 3: Breakdown of Domestic Borrowing by Issue Type in 2003 and 2004 (*)
2003
Direct Sales
2.0%
Fixed-Coupon TL
Auctions
2.5%
FX-Denominated Fixed
RateAuctions
11.6%
TAP Sales
0.5%
Floating Rate Note
Auctions
5.9%
Zero-coupon TL
Auctions
77.5%
2004
Direct Sales
2.0%
Fixed-Coupon TL
Auctions
2.6%
Floating Rate Note
Auctions
11.2%
FX-Denominated Fixed
RateAuctions
3.7%
Fx Denominated
Flaoting Rate Auctions
4.4%
Zero-coupon TL
Auctions
76.1%
(*) Excluding switching auctions and post-auction switching
Compared to 2003, the average maturity of domestic cash borrowing has been
lengthened significantly and reached a level of 14.7 months (Graph 4). Most
influential effects in maturity lengthening were the issuance of TL-denominated zero
coupon bonds with a maturity of 17 months and more, and the issuance of TL
denominated floating rate bonds with a maturity of 2 years. In addition to this,
during the year, USD-denominated floating rate bonds with a maturity of 3 years
10
were issued, and for the first time in October, TL-denominated fixed coupon bond
with a maturity of 3 years were issued.
Graph 4: Weighted Cumulative Average Maturity of Domestic Borrowing Raised
Through The Market
24
2004 (annual average: 14,7 months)
21
18
Month
15
12
9
2003 (annual average: 11,5 months)
6
3
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2003
9.5
9.4
9.9
8.6
10.8
12.7
9.5
11.0
18.3
13.3
11.9
15.9
2004
14.8
13.4
16.0
13.1
9.4
14.5
13.1
14.0
14.8
18.6
12.1
20.2
Compared to 2003, the cost of domestic borrowing has decreased to almost
half of its previous value in 2004. In the year 2004, the cost of TL-denominated zero
coupon bonds which made up three-fourth of the total borrowings from the market,
was realized at about 24.7 percent in average terms (Graph 5).
Graph 5: Weighted Average Cost of Zero-Coupon TL-Denominated
Domestic Borrowing
Compound Interest (%)
70
60
50
2003 (Annual Avg: 45,5)
40
30
20
10
2004 (3 Month Avg: 24,7)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2003 56.8
55.3
59.9
57.5
51.1
46.0
46.2
38.7
32.2
29.3
28.6
27.9
2004 25.5
24.0
24.4
23.2
28.8
27.5
26.3
24.9
25.4
22.8
22.9
23.1
11
Parallel to the cost of TL-denominated bonds, the average cost of dollar
denominated domestic bonds has decreased by 1 percentage point and reached a
level of 4.5 percent in the year of 2004 compared to 2003 (Graph 6).
Graph 6: Quarterly Weighted Average Cost of USD-Denominated Domestic
Borrowing2
Conpounded Interest (%)
8.0
7.0
6.0
5.0
4.0
3.0
2.0
03
20
2.2.4
1
Q
03
20
2
Q
03
20
3
Q
03
20
4
Q
04
20
1
Q
04
20
2
Q
04
20
3
Q
04
20
4
Q
SECONDARY BOND MARKETS
Even if the interest rate of Domestic Government Bonds on the secondary bond
markets fluctuated due to developments in foreign markets from time to time, it showed a
declining trend in overall in year 2004. Within the framework of current economic program
there had been positive improvements in macro economic indicators and the decline in rates
of inflation. As a result of these developments, the Central Bank had reduced short-term
interest rate for four times (Graph 7).
2
Since the dolar denominated domestic bond issues are not held monthly, the graph is presented in quarterly
basis.
12
Graph 7: Interest Rates in the Secondary Markets of Government Securities (*)
32.00
30.00
28.00
26.00
24.00
22.00
20.00
Interest Rates in Secondary Markets
16
/1
2/
04
18
/1
1/
04
18
/1
0/
04
20
/0
9/
04
20
/0
8/
04
23
/0
7/
04
25
/0
6/
04
28
/0
5/
04
29
/0
4/
04
31
/0
3/
04
03
/0
3/
04
30
/0
1/
04
02
/0
1/
04
18.00
CBT O/N Rate
(*) Based on the interest rate of the most traded securities
When the developments related to interest rate of Domestic Government
Bonds in the last quarter of 2004 was examined, it could be seen that in October the
most traded Domestic Government Bonds’ rates declined from 24.4 percent at
beginning of the month to 22.5 percent at the end of the month. The effect of the
European Commission report which was issued on October 6th, the positive
expectations on the maintenance of the fiscal discipline in the upcoming period and
possible agreement on the “Stand By” arrangement with IMF were main essentials in
this decline. In November, the most traded Domestic Government Bonds’ interest
rates followed flat movement within the 22-24 percent interval. In December, the
announcement regarding the agreement with IMF on the new program and the
stand-by arrangement was evaluated positively by markets. In addition to this, after
the decision that Turkey would start full membership negotiations with EU at
December 17 summit, the Central Bank made last interest rate reduction of the year
and the most traded Domestic Government Bond’s annual compounded interest rate
declined to %20.3 at the end of the year.
As a result of the economic developments, secondary markets’ trade volume
increased. The average daily trade volume on net basis in the Istanbul Stock
Exchange (ISE) Outright Purchases and Sales market, which was TL852 trillion (580
million USD) in 2003, increased to TL1.5 quadrillion (1 billion USD) in 2004 (Graph
8).
13
On the ISE Repo-Reverse Repo market the net based daily average trade
volume, which used to be TL4.2 quadrillion in 2003, was realized as TL6.2
quadrillion, by showing an increase of 48 percent. This was accepted as a sign of
increasing market liquidity parallel to the positive economic developments.
Graph 8: Daily Data for the ISE Bonds and Bills Outright Purchases and Sales Market
and Interest Rates Determined in Treasury Auctions(*)
32
3,500
3,000
2,500
28
2,000
26
1,500
24
Trillion TL
Annual Compounded Rate %
30
1,000
22
500
Secondary Markets Interest Rates
04
04
D
ec
14
04
N
ov
24
02
N
ov
04
04
O
ct
12
04
Se
p
22
04
Se
p
02
04
A
ug
12
23
Ju
l
04
04
Ju
l
05
Ju
n
04
ISE Net Trade Volume
15
04
M
ay
26
05
M
ay
04
A
pr
14
25
M
ar
04
M
ar
05
04
Fe
b
16
04
Ja
n
Ja
n
22
02
04
04
20
Treasury Auction Rates
(*) Excluding 3 month T-bill reference auctions and including fixed rate TL denominated security auctions.
Within the framework of Primary Dealership System which is being
implemented since 2002 September, efficiency in the issuance of domestic
government bonds was increased, liquidity increase on the secondary market was
achieved, volatility on the market was reduced. While the Primary Dealer banks’
purchases in the auctions were around 70 percent before the Primary Dealership
System, these banks’ purchases in the auctions increased to 80 percent during the
Primary Dealership period and it was realized as 92 percent average in 20043 (Graph
9).
3
The detailed information regarding Primary Dealership System can be found in the Public Debt Management
Report, November 2004.
14
Graph 9: The Purchase Performance of Primary Dealers in the Auctions
100
97,3
95
Pre Primary Dealership
Period
91,5
89,5
90
86,4
91,4
87,6
92,8
85,5
91,4
87,4
88,5 88,4
87,0
85
92,2
90,2
93,9
90,8
86,7
94,5
93,9
88,5
86,4
81,4
%
80
81,1
74,1
75
69,1
70
80,0
79,8
76,5
72,6
71,5
84,4
71,5
69,6
66,2
67,9
65
J F M A M J
J A S O N D J F M A M J
J A S O N D J F M A M J
J A S O N D0
02 02 02 02 02 02 02 02 02 02 02 02 03 03 03 03 03 03 03 03 03 03 03 03 04 04 04 04 04 04 04 04 04 04 04
Note: Including 3 month reference T-bill auctions, excluding Non-competitive bids and After Auction
Bids.
Since the launching of Primary Dealership System, it was observed that
trading volume of Domestic Government Bonds had an increasing trend in the
secondary markets (Graph 10).
Graph 10: Interest Rates and Total Transaction Volume in the Secondary Market for
Government Securities
Trillion TL
%
3,800
73
3,400
68
3,000
63
58
2,600
53
2,200
48
1,800
43
1,400
38
33
1,000
28
600
Daily Volume (Left Axis)
Avr. Comp. Yield of Benchmark Sec. (Right Axis)
15
18
December-04
October-04
November-04
September-04
September-04
July-04
August-04
May-04
June-04
April-04
March-04
January-04
February-04
December-03
October-03
November-03
September-03
July-03
August-03
May-03
June-03
April-03
March-03
January-03
February-03
December-02
October-02
October-02
September-02
November-02
23
200
Aylık Ortalama İşlem Hacmi (Sol Eksen)
The share of domestic debt stock held by non-bank sector in total market
domestic stock has increased by 2.9 percentage points as of the end of 2004,
compared to the 2003 year end figure. In this period, the share of non-financial
corporate sector has increased by 2.5 percentage points; while retail investors’ share
has decreased by 3.9 percentage points. Gradual increases in quarterly periods have
been observed throughout 2004 and the share of the stock held by non-residents has
reached 8.8 percent level by the end of 2004 with a 4.3 percentage points increase
compared to the end of 2003 (Table 9).
Table 9: The Composition of Domestic Debt Stock Held by the Market (*)
(%)
Banking Sector
1
Non Bank Sector
Retail Investors
Corporate Investors
Non Residents 2
Securities Mutual Funds3
Total
(Quadrillion TL)
4,5
Market Value of Securities in the Market (Quadrillion TL)
5
Principal Value of Securities in the Market (Quadrillion TL)
Dec-03
Mar-04
Jun-04
Sep-04
48.0
49.0
44.9
45.8
Dec-04
45.2
41.2
26.6
10.1
39.8
24.6
9.9
44.8
27.5
11.3
44.2
25.5
11.1
44.1
22.6
12.6
4.5
5.3
6.1
7.5
8.8
10.8
11.2
10.2
10.0
10.8
100.0
100.0
100.0
100.0
100.0
119.4
134.7
139.5
147.1
153.5
101.8
119.2
125.7
135.4
141.1
(*) Provisional. For Domestic Debt Stock held by the market, issuance data is used. Datas related to non-bank sector
and mutual funds, are provided by CBT.
1) Non-bank sector includes legal entities except SDIF, CSF and Unemployment Fund.
2) Based on the reports of the banks who give custody services to non-residents.
3) From March 5, 2004, the custody accounts of mutual funds at ISE Settlement and Custody Bank Inc. are based on
calculation. Before this date, the related data is collected from Capital Markets Board sources.
4) Market value of the market securities based on Official Gazette prices.
5) Securities of TL6,7 quadrillion issued to SDIF for the deposits at Imar Bank are followed in securities in the market
since January, 2004.
As of the end of 2004, in terms of the term structure of domestic debt securities
held by retail investors in bank accounts, it can be seen that longer term TL securities
have started to be preferred by investors, and the share of securities with maturities
longer than one year has increased considerably. In 2003, the share of securities with 1-2
year maturities had an increase by 17.5 percentage points; while this increase was 1.4
percentage points for securities with maturities of longer than two years, after the 3 year
fixed coupon bond issuance in October (Table 10, Graph 11).
16
Table 10: Maturity Composition of Domestic Debt Securities Held by Retail Investors in
Bank Accounts (*)
TL Securities
0-1 Month
Percent Share
26-Dec-03
26-Mar-04
25-Jun-04
24-Sep-04
31-Dec-04
2.6
8.8
13.6
4.9
9.5
1-3 Month
33.3
20.9
23.3
27.6
13.2
3-6 Month
21.9
28.4
22.9
19.9
18.4
FX Denominated Securities
6-12 Month
32.3
25.7
24.3
23.6
30.0
1-2Year
9.6
15.8
15.9
24.0
27.1
2 Year +
0.4
0.4
0.0
0.0
1.8
0-1 Month 1-3 Month 3-6 Month6-12 Month
27.3
13.1
0.0
21.6
0.0
20.4
22.9
9.8
0.0
24.1
1.0
36.9
0.0
1.0
13.1
75.1
0.0
9.1
24.5
56.6
1-2Year
38.0
46.4
37.3
7.8
2.3
2 Year +
0.0
0.5
0.7
2.9
7.5
(*) Provisional. The maturity structures have been calculated for TL and FX securities seperately and maturities are calculated according
to day to maturities.
Nominal values of the securities have been used.
Note: Domestic and foreign branches have been consolidated.
Source: BRSA
Graph 11: Percentage Distribution of Domestic Debt Securities Held by Retail
Investors in Bank Accounts
13.2
9.5
1-Dec-04
4.9
1-Sep-04
18.4
27.6
13.6
1-Jun-04
0
23.6
22.9
20.9
1-Dec-03 2.6
20
25.7
40
0.0
24.0
21.9
30
1.8
15.9
0.0
15.8
0.4
24.3
28.4
33.3
10
27.1
19.9
23.3
8.8
1-Mar-04
30.0
32.3
50
60
70
9.6
80
90
0.4
100
%
0-1 Month
1-3 Month
3-6Month
6-12 Month
1-2 Year
2 Year +
On the other hand, parallel to the lengthening of overall borrowing maturities
the maturity profile of domestically issued FX securities has also shifted towards
longer maturities. The share of FX denominated debt securities with maturities of
less than one month has come down to zero as of the end of 2004; compared to its
27.3 percent level at 2003 year end. Besides, the share of domestically issued FX
securities with maturities of longer than 2 years, owned by retail investors has gone
up to 7.5 percent by the end of 2004 after the 3 year USD denominated variable rate
bond issuances in March, August and November, while this figure was almost zero
by the end of December 2003 (Graph 12).
17
Graph 12: Percentage Distribution of Domestic FX Debt Securities Held by Retail
Investors in Bank Accounts
9.1
1-Dec-04
24.5
56.6
13.1
1-Sep-04
2.3
75.1
7.8
7.5
2.9
1.0
24.1
1-Jun-04
36.9
0.7
37.3
1.0
20.4
1-Mar-04
22.9
27.3
1-Dec-03
0
9.8
13.1
20
0.5
46.4
21.6
38.0
40
60
0.0
80
100
%
0-1 Month
1-3 Month
3-6Month
6-12 Month
1-2 Year
2 Year +
2.3 EXTERNAL DEBT MARKETS
The external borrowing performed for program financing in the consolidated
budget reached USD5.8 billion in the year of 2004. At the same period, USD2.1 billion
total drawing amount that provided from sources of international institutions was
performed for the aim of program financing.
In terms of project financing, USD1.9 billion was drawn in 2003 while USD2
billion was through in 2004. The drawing amounts for 2004 was provisional because
of the delay on getting data from the related institutions. So, the released figure for
the year of 2004 does not contain entire drawing information (Table 11).
Table 11: External Debt Disbursements for Consolidated Budget (*)
USD Million (1)
2004
Apr-Jun
Jul-Sep
2003
Jan-Dec
Jan-Mar
Oct-Dec
Jan-Dec
Total
Program Financing
Bond Issuance
International Institutional
8.861
6.953
5.273
1.680
3.048
2.755
2.755
..
2.058
1.725
750
975
2.445
1.907
745
1.162
2.316
1.500
1.500
..
9.866
7.887
5.750
2.137
Project Financing (2)
1.908
293
333
538
815
1.979
(*) The credit agreements which were signutered before but the actual drawings performed after January 2005 were not
taken into consideration.
(1) The amounts were converted into dollars on the basis of the Central Bank of Turkey exchange rates dated as transaction
bases.
(2) Some part of drawings of consolidated budget in 2004 has not recorded into the accounting system yet.
18
2.4.1
PROGRAM FINANCING
2.4.1.1 International Capital Markets
In 2004, approximately USD5.75 billion of external debt was raised from
international capital markets through bond issuances. Throughout 2004, a borrowing
strategy that is considerate of the cost and risk conditions of the portfolio was
followed while developments in international capital markets were monitored
closely (Table 12).
Table 12: Eurobond Issuance In 2004
Yield-to-Investor
14.01.2004
Maturity
(year)
30+ 1 m
Amount
(million)
1.500
USD
Coupon
(%)
8,000
10.02.2004
10
1.000
EUR
6,500
Issue Date
Currency
(%)
Spread
8,230
UST + 316
6,625
Bund + 246
24.06.2004
7
750
USD
9,000
9,250
UST + 493
21.09.2004
5
600
EUR
5,500
5,750
Bund + 238
07.10.2004
10+ 5 m
1.000
USD
7,250
7,450
UST + 333
24.11.2004 (*)
10+ 4 m
500
USD
7,250
6,974
UST + 286
5.750
USD
2004 Total (**)
UST : United States Treasury bond yield
Bund : German Treasury Bond yield
bp : Basis point (100 bp = 1%)
(*) Reopening of the bond issued on Oct 7, 2004.
(**) As of issue date cross rates
65% of the bonds issued in 2004 was USD denominated and the remaining
35% was denominated in Euro.
The average maturity of USD denominated bond issues, which stood at 8.6
years in 2003, increased to 17.6 years in 2004. The average maturity of Euro
denominated bond issues, on the other hand, rose by two years to 8.2 years
compared to that of the previous year.
In terms of average borrowing costs, external debt was raised with lower costs
in 2004 compared to the previous year. Average borrowing costs of Dollar and Euro
denominated debt which were 10.1% and 9.9% in 2003, decreased to 8.1% and 6.3%
respectively in 2004.
Examining the risk premiums paid for international bond issues, it is noted
that the risk premium paid for the 10 year Euro denominated bonds posted a level of
19
246 basis points, while the premium on the USD denominated bonds with the same
maturity stood at 333 basis points in 2004 (Graph 13).
Graph 13: Risk Premiums Paid for International Bond Issuance
(bp)
800
700
672
662
642
600
550
493
500
400
333
300
246
238
200
100
0
Euro 5 yıl
Euro 7-10 yıl
USD 6-7 yıl
2003
USD 10 yıl
2004
While compared to the peer group countries in 2004, which have the same
rating and borrow in the similar frequency from the markets, it can be said that
Turkey has borrowed under more favorable terms and conditions. In the same
period, Turkey has become the second largest issuer after Mexico, with 15,6% share
of total bonds issued. In this respect, among the leading emerging market countries,
Turkey has been able to preserve its share in international markets for the last three
years in terms of total issuance.
Leading Emerging Market Countries’ Eurobond Issuances
(1995 - 2004)
(billion USD)
Argentina
Mexico
Brazil
Turkey
Russia
Colombia
Philippines
Venezuela
Poland
South Africa
Panama
Ukraine
Peru
Total
Turkey's Share (%)
1995
4,4
4,8
1,6
2,5
0
0,5
0
0,4
0,3
0,3
0
0
0
14,8
16,9
1996
9,9
13,5
1,3
2,8
1,0
1,3
1,1
0,4
0,2
0,8
0
0
0
32,3
8,7
1997
10,2
7,2
4,9
2,9
3,2
1,0
0
4,3
0,4
0,8
1,2
0
0
36,1
8,0
1998
10,6
1,5
2,7
2,7
11,7
1,4
0,5
0,5
0
0
0,3
0,6
0
32,5
8,3
1999
11,6
3,6
4,7
5,0
0
1,5
2,9
0,2
0
1,3
0,5
0,3
0
31,6
15,8
20
2000
9,2
4,9
6,8
7,5
0
1,5
1,7
0,5
0,6
0,8
0,4
1,1
0
35,0
21,4
2001
2,1
4,7
6,7
2,2
0
4,2
0,6
1,2
0,9
0,9
1,2
0
0
24,7
8,9
2002
0
4,0
3,9
3,3
0
1,0
2,9
0
2,7
1,3
0,6
0,4
1,9
22,0
15,0
2003
0
7,4
5,8
5,3
0
1,0
3,2
3,7
4,3
1,4
0,3
1,0
1,3
34,7
15,3
2004
0
7,7
5,7
5,8
0
1,4
4,1
4,0
3,7
1,0
1,2
1,1
1,3
37,0
15,6
Total
58,1
59,3
44,1
40,0
15,9
14,8
17,0
15,2
13,1
8,6
5,7
4,5
4,5
300,8
13,3
Leading Emerging Market Countries’ Eurobond Issuances
(billion USD)
40
36,1
35
35,0
32,5
32,3
34,7
37,0
31,6
30
24,7
25
22,0
20
15
14,8
10
5
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Turkey’s Share in Leading Emerging Market Countries’ Eurobond Issuances
(%)
25
21,4
20
16,9
15,8
15,0
15,3
15,6
2002
2003
2004
15
10
8,7
8,0
8,3
1996
1997
1998
8,9
5
0
1995
1999
2000
2001
2.4.1.2 International Institutions
Under the ongoing program, the Undersecretariat of Treasury disbursed a
total of USD1.2 billion for budget financing from the IMF in the second and third
quarters of 2004. In teh same year, the debt service to the IMF by Treasury amounted
to USD4.7 billion, of which USD3.7 billion was principal and USD936 million was
interest. USD3.5 billion of the principal and USD151 million of the interest is due to
the IMF credit on lent by the Central Bank of Turkey to the Treasury. The Central
Bank of Turkey’s debt service to the IMF during the same period was around USD1
billion (USD992 million principal and USD31 million interests).
21
Taking into consideration the payments made by the Central Bank of Turkey,
the total amount paid to the IMF in 2004 was USD5.7 billion, of which about USD4.7
billion was principal and USD967 million was interest. Hence, net repayment to the
IMF in 2004 was around USD4.5 billion.
International Monetary Fund Disbursements and Repayments
Million SDR
1999
2000
2001
2002
2003
Jan-Mar
2004
Apr-Jun
2004
Jul-Sept
2004
Oct-Dec
2004
Jan-Dec
2004
I. Disbursement
(*)
583
2.622
8.895
9.929
1.191
..
340
454
..
794
II. Debt Service
(*)
218
106
1.207
5.544
1.863
943
936,6
958,6
967
3.805
210
66
868
4.916
1.224
790
790
790
790
3.158
8
40
339
628
639
154
147
169
178
647
III. Net Financing (I-II)
365
2.516
7.688
4.385
-672
-943
-596,6
-504,6
-967
-3.011
Net Financing excluding
Interest
373
2.556
8.027
5.013
-33
-789,6
-449,6
-335,6
-790
-2.364
Principal
Interest
(**) Including the total amount used by the Undersecretariat of Treasury and the Central Bank
Million USD (*)
1999
2000
2001
2002
2003
Jan-Mar
2004
Apr-Jun
2004
Jul-Sept
2004
Oct-Dec
2004
Jan-Dec
2004
I. Disbursement
(*)
799
3.415
11.184
0
1.770
..
498
672
0
1.170
II. Debt Service
(*)
299
138
1.518
0
2.769
1.396
1.372
1.409
1.502
5.679
288
86
1.091
0
1.819
1.169
1.157
1.160
1.226
4.712
11
52
426
0
950
227
215
248
276
967
III. Net Financing (I-II)
500
3.277
9.666
0
-999
-1.396
-874
-736
-1.502
-4.509
Net Financing excluding
Interest
511
3.329
10.092
0
-49
-1.169
-658
-488
-1.226
-3.542
Principal
Interest
(*) On the basis of end period exchange r
(**) Including the total amount used by the Undersecretariat of Treasury and the Central Bank
In 2004 program financing amounting USD975 has been received from the
World Bank. The breakdown of the aforesaid financing is as follows: USD375 million
for
Economic
Reform
Credit,
USD100
million
for
Agricultural
Reform
Implementation Project (ARIP) and USD500 million for Programmatic Financial and
Public Sector Adjustment Loan (PFPSAL-III).
22
Table 13: Disbursements of World Bank Credits
USD Million
2004
JanuaryMarch
Economic Reform Credit
ARIP
PFPSAL-III
Total
..
..
..
..
AprilJulyJune September
375
100
..
475
..
..
500
500
OcoberDecember
JanuaryDecember
..
..
..
..
375
100
500
975
In this way, in year 2004, total use of external resources from international
institutions for budget financing amounted to USD2.1 billion, of which USD1.2
billion was borrowed from International Monetary Fund and USD975 milion was
borrowed from World Bank.
2.4.2
PROJECT FINANCING
In 2004, USD1.5 billion, USD436 million and USD28 million had been
disbursed in services, industry and agriculture sectors respectively. Thus, 76 %, 22
% and 1,4 % of total disbursements had been made in services, industry and
agriculture sectors (Table 14) .
Between October and December 2004 a sum of USD815 million had been
disbursed from the project loans that were provided by the Undersecretariat of
Treasury as the borrower, to finance central government budget. Of this amount
USD612 million, USD196 million and USD7 million had been disbursed services,
industry and agriculture sectors respectively (Table 14). In the same period the
largest amount of disbursement in services sector reached to USD72 million for the
mid-term financing of the Small and Medium Term Enterprises (SMEs). Almost all of
the disbursements in the industry sector were made in the energy sector. The largest
amount in the agricultural sector had disbursed from the World Bank Loan which
was borrowed to finance Agricultural Reform Implementation Project and Direct
Income Support to farmers.
23
Table 14: Distribution of Project Credits by Sector
USD Million (*)
Percentage (%)
2004
Total
Service Sector
Industry Sector
Agriculture Sector
2004
JanMar
AprJun
JulSep
OctDec
JanDec
JanMar
AprJun
JulSep
OctDec
JanDec
293
205
74
13
333
223
110
..
496
434
55
7
815
612
196
7
1.937
1.474
435
28
100
70
25
5
100
67
33
..
101
87,5
11,0
1,5
100
75,1
24,1
0,9
100
76,1
22,5
1,4
(*) At USD/TRL rates as of transaction dates.
The breakdown of total disbursements in 2004 consists of the loans in amounts
of USD1.3 billion, USD462 million and USD3 million from monetary institutions,
international institutions, governmental institutions and non-monetary institutions
respectively (Table 15).
In the last quarter of 2004, totally USD815 million was disbursed for project
financing by Treasury as a borrower within the context of consolidated budget. Of
this amount, USD612 million were allocated to service sector, USD196 million to
industry sector and USD7 million to agriculture sector (Table 14). At the same period,
the service sector with the aim of the medium term financing of the SMEs was listed
as the highest amount project credit with USD72 million. In the ındustry sector,
approximatelly all of the drawings was done for the energy sector. The highest
amount in the agriculture sector was allocated from the IBRD credit for the aim of
The Agricultural Reform Implementation Project and farmers’ direct incomes
support (Table 15).
Table 15: Distribution of External Project Credits Disbursements by Lenders
USD Million (*)
2004
Total
Government Institutions
(1)
Monetary Institutions
Non Monetary Institutions
International Institutions
Percentage (%)
2004
JanMar
AprJun
JulSep
OctDec
JanDec
JanMar
AprJun
JulSep
OctDec
JanDec
293
333
496
815
1.937
68
23
32
74
197
100
23
100
5
100
6,5
100
9,1
100
10,2
135
..
90
221
3
86
381
0
83
539
..
202
1.275
3
462
46
..
31
51
1
43
76,7
0,0
16,8
66,2
..
24,7
65,8
0,2
23,8
(*) At USD/TRL rates as of transaction dates.
(1) Commercial Banks and Non Banking Financial Institutions
24
Disbursements of Other Public Sector from External Project Loans
In 2004, disbursements from the other public sector’s external project loans amounted to
USD819 million. The breakdown of this amount by the disbursing agencies is as follows: USD415
million, USD313 million, USD89 million and USD2 million have been disbursed by Development and
Investment Banks, non-financial SEEs, local administrations and by extra budgetary funds
respectively.
The largest disbursement in the non-consolidated other public sector had been realized in the
first quarter of 2004 with an amount of USD253 million. Between October and December 2004
disbursements in the other public sectors out of central government budget had totalled USD149
million. The biggest share belongs to Development and Investment Banks with 77% while the smallest
share belongs to local administrations with 1 % of the above-mentioned amount.
USD Million (*)
2004
Total
Extra Budgetary Funds
Non Financial SOEs
T. Development and Investment Banks
Local Administrations
Percentage (%)
2004
JanMar
AprJun
JulSep
OctDec
JanDec
253
194
223
149
819
1
167
47
38
1
69
80
44
..
45
172
6
..
32
115
2
2
313
415
89
(*) At USD/TRL rates as of transaction dates.
25
Jan- AprMar Jun
100
0,4
66
19
15
100
0,4
36
41
23
JulSep
OctDec
JanDec
100
..
20,1
77,4
2,5
100
..
21,6
77,3
1,1
100
0,2
38,2
50,7
10,9
Project Loan Agreements Signed in 2004 in the Framework of the Central Government
Budget
The agreements signed in 2004 include the financing provided from commercial banks with an amount of
USD1.5 billion, international institutions with an amount of USD844 million and from governmental
institutions with an amount of USD14 million. The share of loans by commercial banks and international
institutions realized as 63 % and 36 % of the total commercial credits in the same period.
In the first quarter of 2004, no project loan agreement was signed. The amount of project financing loans
signed in each of second and third quarters of 2004 reached to USD1.1 billion. Of the total loans amounting to
USD96 million that were signed for project financing between October and December 2004, 79 % and 21 % had
been provided from commercial banks and international institutions respectively.
USD Million (*)
2004
Percentage (%)
2004
JanMar
AprJun
JulSep
OctDec
JanDec
JanMar
AprJun
JulSep
OctDec
JanDec
..
..
1.083
580
1.147
244
96
20
2.326
844
..
..
100
53,6
100
21,3
100
20,7
100
36,3
..
..
..
503
14
889
..
76
14
1.468
..
..
..
46,4
1,2
77,5
..
79,3
0,6
63,1
Project Financing
International Institutions
Government Institutions (1)
Commercial Banks
(*) At USD/TRL rates as of transaction dates.
(1) KFW
Throughout 2004, USD1.9 billion, USD338 million and USD49 million of credit agreements signed had
been provided for services, industry and agriculture sectors respectively. In the same period, the shares of
project financing loans by the services, energy and agriculture sectors realized in order as 83%, 15% and 2 %.
In the second quarter of 2004, project credits were allocated to service sector with 73 percent and to
industry sector with 25 percent respectively. In the third quarter, these percentages changed to 96 percent and
to 3 percent respectively. Examining new borrowings for project financing with respect to sectors, the highest
portion was service sector with USD50 million in the last quarter of 2004. In this sector, the new borrowings
were received for General Directorate of Highways in using “Eastern Black Sea Coastal State Roads Project”,
and “Düzce-Akçakoca Karadeniz Ereğlisi State Road Project” and “Yakakent Gerze State Road Project” and
for the Undersecretariat of Treasury using in “Bosphorus Tube Crossing a Loan”.
USD Million (*)
2004
Percentage (%)
2004
JanMar
AprJun
JulSep
OctDec
JanDec
JanMar
AprJun
JulSep
OctDec
JanDec
..
..
..
..
..
..
..
..
1.083
788
432
114
242
272
272
23
1.147
1.102
1.088
14
..
39
39
6
96
50
10
40
..
27
27
20
2.326
1.940
1.530
168
242
338
338
49
..
..
..
..
..
..
..
..
100
72,7
54,9
14,4
30,7
25,1
25,1
2,2
100
96,1
98,7
1,2
..
3,4
3,4
0,5
100
51,4
20,2
79,8
0,0
27,9
27,9
20,7
100
83,4
78,9
8,7
12,5
14,5
14,5
2,1
Total
Service
Transportation
Public and Social
Trade
Industry
Energy
Agriculture
(*) At USD/TRL rates as of transaction dates.
26
2.4.3
EXTERNAL DEBT SERVICE
In 2004, within the context of consolidated budget, a total of 16.1 quadrillion TL
(USD11.4 billion) in external debt repayment was carried out. This amount consisted
of TL9.9 quadrillion (USD7 billion) principal payment and TL6.3 quadrillion (USD4.4
billion) interest payment.
Throughout 2004, 38 percent share of repayments was performed for credit
dues, whereas, bonds repayments occupied 62 percent share of the total repayment
amount of TL16.1 quadrillion (USD11 billion) payment. In the same period,
repayments on principal made up 62 percent of the total, while payments on interest
making up 38 percent (Graph 14).
Graph 14: Repayments of Consolidated Budget External Debt in 2004
Interest
Loan
38%
38%
Bond
Principal
62%
62 %
In the October-December period of 2004, a total of TL3.8 quadrillion (USD3.8
billion) amount was repaid. TL2.2 quadrillion (USD1.5 billion) of the total
repayments was for loans, and TL1.6 quadrillion (USD1.1 billion) of it was for bond
issues. TL2.2 quadrillion (USD1.5 billion) of the total repayments was principal
payment, and TL1.6 quadrillion (USD1.1 billion) of it was interest payment (Table
16).
27
Table 16: Repayments of Consolidated Budget External Debt in 2004
Trillion TL (*)
2004
X
X
X
Loan
Principal
Interest
Bond
Principal
Interest
TOTAL
Principal
Interest
USD Million
2004
JanMar
AprJun
JulSep
OctDec
JanDec
JanMar
AprJun
JulSep
OctDec
JanDec
1.394
945
449
5.072
3.686
1.386
6.465
4.631
1.835
1.881
1.259
623
695
0
695
2.576
1.259
1.317
1.537
988
548
1.717
757
960
3.253
1.745
1.508
2.241
1.504
736
1.602
741
860
3.843
2.246
1.597
7.052
4.697
2.356
9.085
5.184
3.901
16.137
9.881
6.257
1.041
707
334
3.759
2.733
1.026
4.800
3.440
1.360
1.298
868
430
478
0
478
1.776
868
909
1.033
665
368
1.166
507
659
2.200
1.172
1.028
1.520
1.026
494
1.096
500
596
2.616
1.526
1.090
4.893
3.266
1.627
6.499
3.740
2.760
11.392
7.006
4.386
(*) The amounts were converted into dollars on the basis of the Central
Bank of Turkey exchange rates dated as transaction bases.
In 2004, within the framework of the consolidated budget, TL6.8 quadrillion
(USD4.7 billion) of the total repayment was realized in USD, TL5.9 quadrillion (USD
4.3 billion) in Euro, TL1.7 quadrillion (USD1.2 billion) in Japanese Yen, TL1.5
quadrillion (USD1 billion) in SDR and TL230 trillion (USD87 million) in other
currencies (Table 17).
Table 17: Currency Composition of Repayments of Consolidated Budget
Trillion TL (*)
2004
Jan-Mar Apr-Jun
Principal
Dollar
Euro
JPY
SDR
Other
X Interest
Dollar
Euro
JPY
SDR
Other
X TOTAL
Dollar
Euro
JPY
SDR
Other
X
4.631
448
3.541
482
91
70
1.835
726
815
49
236
8
6.465
1.175
4.356
530
327
78
1.259
820
188
115
90
45
1.317
688
316
36
251
25
2.576
1.509
505
151
341
71
USD Million
2004
Jul-Sep Oct-Dec
1.745
566
182
875
96
26
1.508
1.011
157
29
305
7
3.253
1.577
338
904
401
33
2.246
1.779
229
112
99
27
1.597
765
436
36
337
22
3.843
2.544
665
148
437
49
Jan-Dec
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Dec
9.881
3.614
4.139
1.584
376
168
6.257
3.191
1.725
150
1.130
63
16.137
6.805
5.864
1.733
1.505
230
3.440
337
2.657
364
67
15
1.360
537
609
36
176
3
4.800
874
3.266
400
243
17
868
576
126
81
66
19
908
474
227
26
173
8
1.776
1.050
354
107
239
27
1.172
382
124
586
67
15
1.028
691
106
19
207
5
2.200
1.073
230
605
273
19
1.526
1.207
159
76
67
17
1.090
531
297
25
230
7
2.616
1.738
457
101
296
24
7.006
2.501
3.066
1.107
267
65
4.386
2.234
1.239
106
785
22
11.392
4.735
4.306
1.212
1.051
87
(*) The amounts were converted into dollars on the basis of the Central Bank of
Turkey exchange rates dated as transaction bases.
Examining repayments in the framework of consolidated budget, the highest
shares in order were 42 percent for Euro, 35 percent for USD, 13 percent for Japanese
Yen, 9 percent for SDR and 1 percent for the other currencies (Graph 15).
28
Graph 15: Currency Composition of Repayments of Consolidated Budget
in 2004
JPY
13 %
Other
1%
SDR
9%
Dollar
35 %
Euro 42 %
2.4.4
SECONDARY MARKETS
Yields on Turkey’s bonds fell to historical lows in the first quarter of 2004.
However, in the second quarter of the year, there was a spike in the emerging market
bond yields accompanied with a period of volatility, mainly driven by the
expectations of increase in FED interest rates. This period continued until the date of
June 30, 2004 when FED raised short-term interest rates by 25 basis points and
reiterated its commitment to raise rates at a “measured” pace. After this date, a rapid
decline in yields was observed. However, following the FED chairman Alan
Greenspan’s testimony to Congress on July 20, 2004, where he stated that interest
rates can be raised at an increasing pace, emerging market bond yields increased
sharply. After the subsequent economic data which indicated a slow pace of growth
in U.S.A, yields started to fall again.
In the last quarter of 2004, markets continued to focus on the
developments in the U.S economy. Nevertheless, volatility was limited in this period
compared to the previous periods, due to both the economic data, supporting slow
pace of growth in U.S.A and the seasonal decline in liquidity. Turkey’s bond yields
continued with its downward trend and fell to its historical low levels depending on
the expectations and developments regarding the EU process and the new IMF
Stand-by arrangement. (Graph 16, Graph 17).
29
Graph 16: Secondary Market Performance of USD Denominated Eurobonds
yield (%)
11
US
US
Greenspan
US
December 17
Employment
Employmen
Testimony
Employment
EU Brussels
Data (Apr)
t Data (Jun)
Data (Jul)
Summit
$ 9.875% 2008
$ 11.0% 2013
10
$ 11.875% 2030
9
8
7
6
5
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Graph 17: Secondary Market Performance of Euro Denominated Eurobonds
yield (%)
10
US
US
Employment
Employment
Data (Apr)
Data (Jun)
Greenspan
Testimony
US
December 17
Employment
EU Brussels
Summit
Data (Jul)
€ 8.125% 2007
9
€ 9.25% 2010
€ 6.5% 2014
8
7
6
5
4
3
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
In light of those improvements, Turkish bonds were traded at lower yield
levels than those of its peer group countries (Table 18,Graph 18).
30
Table 18: Yield Comparison with Peer Group Countries (*)
USD Denominated Eurobonds
Country
Rating Coupon (%)
Turkey
Brazil
Colombia
Venezuela
Philippines
Euro Denominated Eurobonds
B1 / BBB1 / BBBa2 / BB
B2 / B
Ba2 / BB
Country
Rating Coupon (%)
Turkey
Philippines
Venezuela
Colombia
Brazil
Maturity Yield (%)
8,000
8,250
10,375
9,375
10,625
B1 / BBBa2 / BB
B2 / B
Ba2 / BB
B1 / BB-
2034
2034
2033
2034
2025
Spread (bp)
7,63
8,65
8,89
8,92
9,77
279
381
404
408
522
Maturity Yield (%)
Spread (bp)
9,500
9,125
11,125
11,500
9,500
2011
2010
2011
2011
2011
5,18
5,46
6,33
6,33
6,49
198
238
305
307
329
(*)As of end 2004
Graph 18: EMBI+ and EMBI+ Turkey Subindex
US
Employment
Data (Apr)
(bp)
US
Employment
Data (Jun)
Greenspan
US
December 17
Testimony Employment
EU Brussels
Data (Jul)
Summit
600
500
400
300
200
(EMBI+T urkey)-(EMBI+)
100
EMBI+
EMBI+ T urkey
0
-100
-200
Jan
2.4.5
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
CREDIT RATING
In the last quarter of 2004, Turkey’s credit ratings remained same. The current
credit ratings as of the end of 2004 are B1 (stable) by Moody’s, BB- (stable) by
Standard & Poor’s, B+ (positive) by Fitch, and B+ (positive) by JCR.
31
As regards the whole year 2004, Turkey’s credit ratings were on an improving
track. While Standard&Poor’s and Fitch upgraded Turkey’s sovereign credit rating,
JCR changed Turkey’s rating outlook from stable to positive. In the wake of S&P’s
upgrading of our credit rating, Turkey’s fx denominated long-term credit rating
increased to “BB” from “B” for the first time after ten years (Table 19).
Table 19 : Developments in the Credit Rating of Turkey
End of 2003
09.02.2004
08.03.2004
12.03.2004
17.08.2004
25.08.2004
End of 2004
Standard & Poor's
Moody’s
Fitch
JCR
B+ (stable)
..
B+ (positive)
..
BB- (stable)
..
BB- (stable)
B1 (stable)
..
..
..
..
..
B1 (stable)
B (positive)
B+ (stable)
..
..
..
B+ (positive)
B+ (positive)
B+ (stable)
..
..
B+ (positive)
..
..
B+ (positive)
32
3 DEBT STOCK
3.1 CHANGES IN DEBT STOCK
The consolidated budget debt stock, which was 314.8 quadrillion TL in
September 2004, grew by TL1.6 quadrillion during the last three months of the year,
reached TL316.4 quadrillion by the end of the year. In this context, the consolidated
budget debt stock amount for the end of 2004 was TL33.5 quadrillion greater than the
TL282.9 quadrillion of the previous year. In 2004, when compared to the year 2003,
the domestic debt stock and the external debt stock grew TL30.1 quadrillion and
TL3.4 quadrillion respectively (Table 20).
Table 20: Consolidated Budget Debt Stock (*)
2003
Quadrillion TL
2004
Billion USD
% Share
Quadrillion TL
Billion USD
% Share
TOTAL
282.9
202.7
100.0
316.4
235.7
100.0
DOMESTIC DEBT STOCK
194.4
88.5
37.5
51.0
139.3
63.4
26.8
36.6
68.7
31.3
13.2
18.1
224.5
91.9
39.8
52.0
167.3
68.5
29.7
38.8
71.0
29.0
12.6
16.5
EXTERNAL DEBT STOCK
BONDS
CREDITS
(*) Provisional, based on Central Bank of Turkey foreign exchange rates as of 31.12.2004
3.1.1
DOMESTIC DEBT
While the net domestic financing has realized TL30.8 quadrillions, the increase
in domestic debt has stood at TL30.1 quadrillions in 2004. The difference between the
stock and the financing figures has resulted from on-lending borrowing, return of the
domestic debt securities and the exchange rate differences amounting TL2.3
quadrillions, (-) TL1.9 quadrillions, (-) TL1.1 quadrillions, respectively (Table 21).
33
Table 21: January-December Consolidated Budget Domestic Debt Stock Change
(in trillion TL) (*)
2003 December Domestic Debt Stock
2004 January-December Change in Domestic Debt Stock
Budget Net Domestic Financing (+)
Non-Cash On-Lending (+)
Non-Cash On Account Net Borrowing (+)
Return of the Securities
Exchange Rate Difference (+)
Other (+)
2004 December Domestic Debt Stock
194,387
30,096
30,759
2,341
-1,947
-1,947
-1,057
0
224,483
* Provisional
While in September 2004, the consolidated budget debt stock was TL217.6
quadrillions, in December it had reached to TL224.5 quadrillions. Therefore, in the
last quarter of the year, domestic debt stock increased by TL 6.9 quadrillions. On the
other hand, the increase in domestic financing of the consolidated budget was TL7
quadrillions. The difference between the net domestic financing and the increase in
the domestic debt amounting TL0.1 quadrillion
has resulted from on-lending
borrowing by TL2.3 quadrillions, and exchange rate differences by (-) TL2.4
quadrillions (Table 22).
Table 22: October-December Consolidated Budget Domestic Debt Stock Change
(in trillion TL) (*)
2004 September Domestic Debt Stock
2004 October-December Change in Domestic Debt Stock
Budget Net Domestic Financing (+)
Non-Cash On Lending (+)
Non-Cash On Account Net Borrowing (+)
Return of Securities
Exchange Rate Difference (+)
Other (+)
2004 December Domestic Debt Stock
217,571
6,912
7,033
2,341
0
0
-2,399
-63
224,483
* Provisional
3.1.2
EXTERNAL DEBT
In 2004, while the external debt stock increased by TL3.4 quadrillions, the
increase in foreign borrowing of the consolidated budget stood at TL3.1 quadrillions.
The difference between the outstanding debt and the foreign financing figures,
34
amounting TL0.3 quadrillion has resulted from the unapproved foreign project credit
and the exchange rate amounting TL1 quadrillion and (-) TL0.7 quadrillion (Table
23).
Table 23: January-December Consolidated Budget Foreign Debt Stock Change
(in trillion TL) (*)
2003 December Foreign Debt Stock
2004 January-December Change in Foreign Debt Stock
Budget Net Foreign Financing (+)
Unapproved Foreign Project Credit (+)
Exchange Rate Difference (+)
2004 December Foreign Debt Stock
88,507
3,390
3,072
1,028
-709
91,897
* Provisional
The consolidated budget external debt stock, which was TL97.5 quadrillions in
September 2003, decreased by TL5.3 quadrillions during October-December,
reaching TL91.9 quadrillions. In the same period, foreign financing of the
consolidated budget stood at TL1 quadrillion. The difference between the increase in
external debt stock and the consolidated budget external financing, amounting TL6.3
quadrillions, has come from the unapproved foreign project credit and the exchange
rate amounting TL0.1 quadrillion and (-) TL6.4 quadrillions, respectively (Table 24).
Table 24: October-December Consolidated Budget Foreign Debt Stock Change
(in trillion TL) (*)
2004 September Foreign Debt Stock
2004 October-December Change in Foreign Debt Stock
Budget Net Foreign Financing (+)
Unapproved Foreign Project Credit (+)
Exchange Rate Difference (+)
2004 December Foreign Debt Stock
* Provisional
35
97,198
-5,301
1,023
129
-6,453
91,897
3.2 STRUCTURE OF CONSOLIDATED BUDGET DEBT STOCK
As a result of benchmark borrowing strategies4 applied in 2004, share of TL
denominated debt in the total debt stock which was 53,7 percent at the end of 2003,
has risen to 58,5 percent (Table 25, Graph 19). Likewise, 4.8 points decrease of the
share of FX denominated/FX indexed debt in the total debt stock compared to the
previous year was the result of Treasury’s heavy TL denominated borrowing.
Table 25: Currency Composition of Consolidated Budget Debt Stock (2003-2004)*
2003
(Quadrillion TL)
TOTAL
Domestic Debt Stock
External Debt Stock
TLdenominated
USDdenominated /
indexed
EUROdenominated /
indexed
151,8
151,8
0,0
65,2
29,3
35,8
28,1
4,8
23,3
SDR
31,8
8,5
23,4
53,7
78,1
0,0
23,0
15,1
40,5
9,9
2,5
26,3
11,3
4,4
26,4
Japanese
Yen
5,2
0,0
5,2
Other
0,8
0,0
0,8
Total
282,9
194,4
88,5
1,8
0,0
5,9
0,3
0,0
0,9
100,0
100,0
100,0
3,9
0,0
3,9
Other
0,7
0,0
0,7
Total
316,4
224,5
91,9
1,2
0,0
4,2
0,2
0,0
0,8
100,0
100,0
100,0
(% Share)
TOTAL
Domestic Debt Stock
External Debt Stock
2004
(Quadrillion TL)
TOTAL
Domestic Debt Stock
External Debt Stock
(% Share)
TOTAL
Domestic Debt Stock
External Debt Stock
TLdenominated
USDdenominated /
indexed
EUROdenominated /
indexed
185,0
185,0
0,0
69,2
30,2
39,0
29,1
5,6
23,5
SDR
28,5
3,7
24,8
58,5
82,4
0,0
21,9
13,5
42,4
9,2
2,5
25,6
9,0
1,6
26,9
Japanese
Yen
*Provisional, based on end period Central Bank of Turkey foreign exchange rates.
4
Information on 2004 benchmark borrowing strategies is given in Public Debt Management February 2004
Report.
36
Graph 19: Currency Composition of Consolidated Budget Debt Stock
2003
FX Den. /
Indexed
46,3%
2004
FX Den. /
Indexed
41,5%
TL Den.
53,7%
TL Den.
58,5%
Within the scope of minimizing interest at risk component of Treasury’s debt
portfolio strategy, share of floating interest debt in consolidated budget total debt
stock decreased 4.9 points and came to 46.2 percent at the end of 2004 compared to
2003 (Graph 20).
Graph 20: Interest Composition of Consolidated Budget Debt Stock
Floating
Rate
51,1%
3.2.1
2003
2004
Floating
Rate
46,2%
Fixed Rate
48,9%
Fixed Rate
53,8%
DOMESTIC DEBT
The share of TL denominated securities in domestic debt stock increased from
78.1 percent to 82.4 percent in 2004 when compared to 2003 (Graph 21). Treasury’s
borrowing strategies aiming to reduce FX risk and the appreciation of TL have been
the main reasons for the decrease in the share of FX denominated / indexed debt.
37
Graph 21: Currency Composition of Consolidated Budget DomesticDebt Stock
2004
2003
FX Den. /
Ind.
21.9%
TL
78.1%
FX Den. /
Ind.
TL
17.6%
82.4%
The share of floating rate notes in domestic debt stock has been 48.5 percent as
of 2004 and the remaining 51.5 percent consisted of fixed rate debt (Graph 22). The
decrease in the share of floating rate borrowing which had been 56.3 percent as of
2003, was realized due to fixed rate borrowing for the redemptions of floating rate
non-cash redemptions.
Graph 22: Interest Composition of Consolidated Budget Debt Stock
2004
2003
Floating
56,3%
3.2.2
Floating
Fixed
Rate
43,7%
48.5%
Fixed
Rate
51.5%
EXTERNAL DEBT
The consolidated budget external debt stock, which had been USD63.4 billion
at the end of 2003, reached to USD68.5 billion by the end of 2004. USD29.7 billion
(43%) bonds issued at external markets and USD38.8 billion (57%) credits made up
this mentioned amount (Table 26).
In line with the USD5.8 billion borrowing, netting repayments and
developments in foreign exchange rates, the external bond stock, which had been
USD26.8 billion at the end of 2003, reached to USD29.7 billion at the end of 2004. Of
USD29.7 billion external bond stock, USD17.2 billion was Dollar-denominated (58%)
38
and USD12.4 billion was Euro-denominated (42%) bonds. By the end of 2004, only
USD96.4 million (10 billion JPY) of Yen-denominated bond existed in the stock.
Within this context, in year 2004 net bond borrowing was heavily performed in USD
terms.
At credits side, like occurred in the year 2003, IMF credits took over the largest
component of credit stock by SDR18.5 billion.
Table 26: Currency Composition of Consolidated Budget External Debt Stock (2003-2004)
(Billion USD)*
TOTAL
BONDS
CREDITS
USD
25,7
14,0
11,7
2003
Euro
16,7
11,9
4,7
TOTAL
BONDS
CREDITS
USD
29,1
17,2
11,9
Euro
17,5
12,4
5,1
SDR
16,7
0,0
16,7
Japanese Yen
3,7
0,9
2,8
Other
0,6
0,0
0,6
Total
63,4
26,8
36,6
2004
SDR
18,5
0,0
18,5
Japanese Yen
2,9
0,1
2,8
Other
0,6
0,0
0,6
Total
68,5
29,7
38,8
*Provisional, based on end period Central Bank of Turkey foreign exchange rates.
Currency composition of the external debt stock in year 2004, showed no
significant change from 2003. 42.4 percent of USD-denominated obligations kept
being the greatest part of the total stock at the end of 2004. Euro-denominated and
the SDR-denominated obligations made up the 25.6 percent and 26.9 percent of the
external debt stock respectively (Graph 23).
39
Graph 23: Currency Composition of Consolidated Budget External Debt Stock
2003
SDR
26,4%
Euro
26,3%
Japanese
Yen
Other
5,9%
0,9%
2004
SDR
26,9%
Japanese
Other
Yen
0,8%
4,2%
Euro
25,6%
USD
40,5%
USD
42,4%
Fixed rate notes in the consolidated budget external debt stock slightly
decreased compared to 2003 and realized as 59.5 percent at the end of 2004. As the
foreign bonds making 43 percent of the consolidated budget external debt stock was
completely issued in fixed interest rates, consolidated budget external debt stock was
mostly build up by fixed rate debt instruments (Graph 24).
Graph 24: Interest Composition of Consolidated Budget External Debt Stock
Floating
Rate
39,8%
2003
Fixed
Rate
60,2%
Floating
Rate
40,5%
2004
Fixed Rate
59,5%
4 DEBT SERVICE PROJECTION
The pre-determined domestic debt payments as end of January 2005, TL150.1
quadrillion in total, will be consisting of TL112.7 quadrillion principal and of TL37.3
quadrillion interest. These amounts may change due to interest and exchange rate
realizations and new borrowings in time (Graph 25).
40
Graph 25: Pre-Determined Domestic Debt Payments for 2005 (*)
18
16
Quadrillion TL
14
12
10
8
6
4
2
Principal
N
ov
.0
5
D
ec
.0
5
5
A
ug
.0
5
S
ep
.0
5
O
ct
.0
5
Ju
l.0
Ju
n.
05
M
ay
.0
5
M
ar
/0
5
A
pr
.0
5
Ja
n.
05
Fe
b.
05
0
Interest
(*) As end of January 2005. Figure for January 2005 represents realization, while the figures for other
months represent projections.
The pre-determined payments of domestic debt are comprised of payments of
TL 127.5 quadrillion for the redemption of TL denominated securities and TL 22.6
quadrillion for the redemption of FX denominated and indexed securities (Graph 26).
Graph 26: TL/FX Composition of Pre-Determined Domestic Debt Payments for 2005 (*)
18
16
Quadrillion TL
14
12
10
8
6
4
2
TL
N
ov
.0
5
D
ec
.0
5
A
ug
.0
5
S
ep
.0
5
O
ct
.0
5
5
Ju
l.0
Ju
n.
05
A
pr
.0
5
M
ay
.0
5
M
ar
.0
5
Ja
n.
05
Fe
b.
05
0
FX Denominated/Linked
(*) As end of January 2005. Figure for January 2005 represents realization, while the figures for other
months represent projections.
A total of TL 25quadrillion (USD15.6 billion) repayment of external debt
projections in the year of 2005 includes total repayments of TL15.6 quadrillion
(USD9.6 billion) and TL9.4 quadrillion (USD6 billion) for credits and bonds
41
respectively. Out of these totals, repayments of TL17.6 quadrillion will be made (USD
10.9 billion) for principal, while the rest will be held for interest repayments (Graph
27).
A
ug
Se
p
O
ct
N
ov
D
ec
A
ug
Se
p
O
ct
N
ov
D
ec
Bond
Principal
Ju
l
Ju
n
M
ay
A
pr
M
ar
Fe
b
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Ja
n
quadrillion TL
Loan
Ju
l
Ju
n
M
ay
A
pr
M
ar
Fe
b
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Ja
n
quadrillion TL
Graph 27: Projection of Consolidated Budget External Debt Repayments in 2005
Interest
(*) As of end of January 2005. It shows the actual data for Jan 2005 and the rests are the projections.
It is estimated that a total of USD62.2 billion will be paid out within the
framework of consolidated budget foreign debt service in the period of 2005-2009. 75
percent of this amount (USD46.7 billion) will be performed for principal, while the 25
percent of it will be (USD15.6 billion) for interest. During the same period, 59 percent
(USD36.6 billion) and 41 percent (USD25.6 billion) of the total payments results from
credits and bonds respectively (Graph 28).
42
Graph 28: Projection of Consolidated Budget External Debt Payment (*)
b illio n USD
20,0
15,0
10,0
5,0
0,0
Total
2005
2006
2007
2008
2009
15,7
20,5
10,5
9,3
6,2
Interest
4,8
3,6
2,9
2,3
1,9
Principal
10,9
16,9
7,6
7,0
4,3
(*) The external debt projections of end of Dec 2004 calculated with 30.09.2004 exchange rates. The payments to IMF
are estimated bases.
Formatted: Bullets and
Numbering
43
5 GRANTS
5.1 GRANTS AWARDED
In 2004, the Republic of Turkey awarded a total of USD2.2 million of grants.
The largest share belongs to Afghanistan with an amount of USD1.1 million (Table
27).
Table 27: Grants Awarded by Treasury in 2004
Granted to
(Institution/Country)
Date
Explanation
Amount
Currency
Palestine
12/19/2004
Economic and Social Development
900,000
USD
Afghanistan
12/19/2004
Financing of Current Expenditures
100,000
USD
Afghanistan
12/19/2004
Economic and Social Development
1,000,000
USD
World Food Program
12/27/2004
Financing of the Activities of the World Food
Program in Tajikistan
150,000
USD
Total
2,150,000
Formatted: Bullets and
Numbering
5.2 GRANTS RECEIVED
In the last quarter of 2004, a total of USD35.1 million was provided to the
Republic of Turkey, of which USD28.1 million was denominated in Euro and the rest
in USD.
In 2004, the total amount of grants received was USD160.6 million. During this
period, the largest grant was obtained from the European Commission in the amount
of USD123.4 million. That was followed by the German Goverment and KFW grants
in the amount of USD26 million (Table 28).
44
Table 28: Grants Received by Treasury in 2004
Grant
Grants Received From
Date
Transferred To
Amount
Currency
Mersin Harbour Feasibility Study
Kingdom of Spain
1/19/2004
Ministry of Transportation/DLHI
259,630
EUR
Çandarlı Harbour Feasibility Study
Kingdom of Spain
1/19/2004
Ministry of Transportation/DLHI
261,393
EUR
Decreasing the Seismic Risk of Istanbul ve
Emergency Preperation Project
World Bank (Japan PHRD
Grant)
1/23/2004
Priministry Project Implementation Unit 927,500
USD
Strengthening Institutional Capacity Building for
Efficient Public Liability Management
World Bank Institutional
Development Fund (IDF)
3/9/2004
Undersecretariat of Treasury, Gen. Dir.
Of Public Finance
320,000
USD
Real Estate Information System Feasibility Study
United States Trade and
Development Agency
(TDA)
3/22/2004
Municipality of Küçükçekmece
114,000
USD
2003 Financial Memorandum
European Commission
6/21/2004
Central Finance and Contacts Unit
50,655,200
EUR
Eastern Part of Turkey Development Program
European Commission
6/4/2004
Central Finance and Contacts Unit
7,724,473
EUR
Technical Preperation for Municipal Services
Project
World Bank (IBRD)
5/5/2004
İller Bank
500,000
USD
Preperation for Restructuring of Railways
World Bank (IBRD)
6/11/2004
R.T. State Railways
700,000
USD
Technical Support of Judicial Reform
World Bank (IBRD)
5/5/2004
Ministry of Justice
460,000
USD
Batman Water Supply and Sewerage Project
German Government-KfW
7/7/2004
Municipality of Batman
9,041,820
EUR
Preperation for Energy Liberalization Project
World Bank (Japan PHRD
Grant)
9/22/2004
Ministry of Energy and Natural
Recourses
600,000
USD
Pre-accession Financial Aid/2002 Financial
Memorandum-Administrative Cooperation
Program
European Commission
7/22/2004
7/27/2004
9/8/2004
Central Finance and Contacts Unit
32,895,183
EUR
Emergency Measures Project for Van Water Supply
German Government-KfW
and Sewerage System
12/23/2004
Anatolian Water Basin Project
Global Environment Facility 10/4/2004
II. Administrative Cooperation Program , 2001
Accession to MEDA Program
European Commission
11/23/2004
12/21/2004
Municipality of Van
11,101,804
EUR
Ministry of Environment and Forestry,
Ministry of Agriculture and Rural
Affairs
7.000.000
USD
Central Finance and Contacts Unit
9,932,012
EUR
160,622,675
USD
Total
In 2004, the highest amount of grant was allocated to Central Finance and
Contracts Unit, categorized under “Other” item of Table 29.
Table 29: Breakdown of the Grants Received and Used by Treasury in 2004 (USD)
Grants Received From
Jan-March
April-June
July-Sept
Oct-Dec
Jan-Dec
Governments
Multilateral Organizations
European Commission
765,435
1,247,500
..
..
1,660,000
70,327,287
11,116,917
600,000
39,773,566
14,850,884
7,000,000
13,281,086
26,733,236
10,507,500
123,381,939
Grants Transferred To
Consolidated Budget (*)
Local Administrations
SOEs
Other
1,898,935
114,000
..
..
460,000
..
700,000
70,827,287
217,800
11,116,917
382,200
39,773,566
7,000,000
14,850,884
..
13,281,086
9,576,735
26,081,801
1,082,200
123,881,939
Total
2,012,935
71,987,287
51,490,483
35,131,970
160,622,675
(*) USD 217.8 thousand of the USD 600 thousand grant which was provided in July-Septemeber period, will be used jointly by Ministry of Energy and Natural
Resources and EUAS. As the amount which will be used by each party is not known, the total amount of the grant is shown in "Consolidated Budget" Section of the table.
45
Formatted: Bullets and
Numbering
6 CONTINGENT LIABILITIES
6.1 REPAYMENT GUARANTEES
6.1.1
TREASURY GUARANTEED EXTERNAL DEBT STOCK 5
As of September 2004, Treasury guaranteed external debt stock decreased by
0.7 percent to USD5.3 billion compared to that of the previous quarter (Table 30). As
of the end of the third quarter of 2004, although there has not been a major change in
the institutional breakdown of the stock, the increase in the share of development
and investment banks continued as in the previous period.
Table 30: Treasury Guaranteed External Debt Stock
End of June 2004
Trillion TL
Millon $
X
X
X
X
X
%
End of September 2004
Trillion TL
Millon $
7,953
5,352
100
7,958
5,313
100
SOEs
Local Government
Extra Budgetary Funds
Development and Investment Banks
4,278
1,829
722
1,124
2,879
1,231
486
756
54
23
9
14
4,184
1,764
697
1,312
2,794
1,178
466
876
53
22
9
16
(*) Provisional
(**) Exchange rates based on end of period bid rates
5
%
TOTAL
The guaranteed external debt stock is updated with a quarterly lag because the data is reported by the borrowers.
46
As of the third quarter of 2004, the share of private creditors6 declined. The
mentioned decreasing trend had started in 1996 and continued increasingly
beginning from 2000 (Graph 29). In the same period, while the share of the official
creditors in the Treasury guaranteed external debt stock remained same, an increase
was observed in the share of the multilateral organizations. This increase in the share
of the multilateral institutions and the drop in the share of the private creditors
resulted from the clear change taking place in the lenders’ breakdown of the
Treasury guaranteed debt provided since 2002. This change was a consequence of the
implementation of the partial guarantee7 scheme, which was applied to the
guaranteed credit claims except the ones obtained from the regional and
international lenders and from the official export credit agencies.
Graph 29: Treasury Guaranteed External Debt Stock by Lender*
7,000
6,000
million $
5,000
4,000
3,000
2,000
1,000
0
1996
1997
Official Creditors
1998
1999
2000
2001
Multilateral Organizations
2002
2003
2004 Ç3
Private Creditors
* Provisional
As of the end of September 2004, the main holders of Treasury guaranteed
external debt stock were Electricity Production Inc. (EÜAŞ) holding USD1.2 billion
and Turkish Airlines (THY) holding USD900 million (Graph 30).
6
Private creditors comprise the commercial banks, nonbank financial institutions and the non-monetary
institutions.
7
The partial guarantee practice was started according to the article 10 of the Regulation on the Principles and
Procedures for the Granting, Monitoring, Budgeting and Reporting of Treasury Guarantees (published in the
Official Gazette on April 12, 2002).
47
Graph 30: Institutional Breakdown of Treasury Guaranteed Debt Stock
by the end of September 2004
TÜPRAŞ
4%
OTHER
32%
EXİMBANK
6% DISF
9%
TSKB
9%
THY
17%
EÜAŞ
23%
*Provisional
As of the end of September 2004, the seven institutions holding the largest
shares within the guaranteed debt stock of the SOEs made up 97 percent of that
stock. Among these institutions, the largest share belongs to EÜAŞ (Graph 31).
Besides, Municipality of Adana Greater City and Municipality of Eskişehir Greater
City continue to hold the largest shares among the local administrations during the
same period (Graph 32).
Graph 31: Institutional Breakdown of the
Treasury Guaranteed Debt Stock of the SOEs by
the end of September 2004*
OTHER
3%
TELEKOM
1%TPAO
2%
TEİAŞ
BOTAŞ
5%
6% TÜPRAŞ
7%
Graph 32: Institutional Breakdown of the
Treasury Guaranteed Debt Stock of the Local
Administrations by the end of September 2004*
EGO
8%
"
"
EÜAŞ
44%
BUSKİ
6%
OTHER
49%
THY
32%
*Provisional
*Provisional
MUN. OF
İSTANBUL
G.C.
8%
MUN. OF
İZMİR G.C.
8%
MUN. OF
ADANA G.C.
11%
MUN. OF
ESKİŞEHİR
G.C.
10%
The evaluation of the currency composition of the Treasury guaranteed debt
stock showed that US dollar-denominated debt stock accounted for 63.6 percent and
Euro denominated debt stock accounted for 28.1 percent of the stock by the end of
September 2004. On the other hand, loans with variable interest rate accounted for
62.7 percent and fixed rate loans accounted for 35.7 percent of the guaranteed debt
stock (Graph 33).
48
Graph 33: Currency and Interest Rate Composition
of Guaranteed External Debt Stock as of the end of September 2004*
USD
63,6%
Variable
62,7%
OTHER
0,3%
JPY
6,1%
GBP
1,4%
EUR
28,1%
Mixed
1,6%
CHF
0,5%
Fixed
35,7%
* Provisional
6.1.2
* Provisional
Formatted: Bullets and
Numbering
REPAYMENT GUARANTEES ISSUED
In 2004, a total of USD808 million Treasury guanteed loan was provided by an
amount of USD607 million in the first quarter, USD201 million in the last quarter8
(Table 31).
In the last quarter of 2004, the liabilities arising from the USD1.8 million loan
that was provided to Milas Municipality were under 95 percent of guarantee9.
Table 31: Treasury Guaranteed Debt Issued in 2004
Agreement Date
Currency
Loan amount
Creditor
2/20/2004
USD
303,100,000
World Bank
3/4/2004
EUR
250,000,000
European Investment Bank
T. Sınai Kalkınma Bank (TSKB)
11/30/2004
EUR
150,000,000
European Investment Bank
Municipality of Milas
12/15/2004
USD
1,845,000
Commercial Bank
T. Sınai Kalkınma Bank (TSKB)
T. Sınai Kalkınma Bank (TSKB), T. Vakıflar
Bank, R.T. Ziraat Bank, T.Halk Bank, T.
Development Bank
Total in USD
807,635,000
The analysis of the Treasury guarantees between the years 1996-2004 shows
that there has been a decrease in the share of the private creditors and an increase in
the share of multilateral institutions especially after 1999. Starting from 2002, the
8
In 2004, the guaranteed debt limit was determined as USD1 billion in the budget law.
9
Treasury repayment guarantee is provided partially up to 95% of the total liability on price and/or amount
where the financial conditions for each guarantee claimed loan are to be defined. Similarly, Treasury investment
guarantee is provided partially up to 95% of the total liability on price/tariff, amount and duration for each
guarantee type. However, the loans received from international and regional institutions and the export credits
obtained from the official export credit agencies are exempt from partial guarantee scheme.
49
composition of Treasury guarantees by lenders changed drastically; all the Treasury
guaranteed loans provided in 2003 and 99.8 percent of the Treasury guaranteed loans
provided in 2004 were obtained from multilateral institutions (Graph 34).
Graph 34: Treasury Guarantees By Lender*
3,500
3,000
million $
2,500
2,000
1,500
1,000
500
0
1996
1997
Official Creditors
1998
1999
2000
Multilateral Organizations
2001
2002
2003
2004
Private Creditors
*Provisional
6.2 INVESTMENT GUARANTEES
Formatted: Bullets and
Numbering
During 1995-1999 period, Undersecretariat of Treasury provided investment
guarantees for one operating rights transfer (ORT) project and eleven build-operatetranfer (BOT) projects of which one for water supply and the remaining ten for
electricity generation purposes and for five build-operate (BO) projects (Table 60).
Between the years 1999-2004, no investment guarantee was provided.
There has not been any payments undertaken among the electricity sector
BOT/BO/ORT projects. On the other side, for the water supply BOT project,
payments are being undertaken in line with the “take-or-pay” agreement signed
between Municipality of İzmit Greater City and the BOT company.
6.3 REPAYMENTS FOR CONTINGENT LIABILITIES
In the last quarter of 2004, TL162.4 trillion payments have been realized from the
Risk Account10 due to the financial difficulties of the institutions.
10
In accordance with Article 13 of Law no. 4749 “Law on Regulating Public Finance and Debt Management”,
dated 28 March 2002, a Risk Account which belongs to the Treasury has been established at the Central Bank of
50
Formatted: Bullets and
Numbering
In the same period, the amount of collection was in the amount of TL37.9 trillion
and a big part of it11 was obtained from the SOEs and the local administrations which
have high proportion of undertaken payments (Table 32).
Table 32: Risk Account
(Billion TL)
Total Payments
SOEs
BOT
Local Administrations
Banks
EBFs
FX Differences
Total Income (-) *
SOEs
BOT
Local Administrations
Banks
EBFs
JAN-DEC 03
Jan-March
April-June
July-Sep
Oct-Dec
JAN-DEC 04
1,003,571
172,837
288,734
525,000
0
17,000
137,136
6,370
31,919
98,846
0
0
194,326
14,911
60,742
118,674
0
0
146,166
1,254
60,839
84,073
0
0
162,359
14,317
59,814
88,228
0
0
639,987
36,852
213,314
389,822
0
0
-91
104
9
0
47
159
78,747
47,388
66
30,750
543
0
36,867
27,016
41
9,717
93
0
59,292
25,445
229
33,562
56
0
29,279
9,861
44
16,852
2,522
0
37,911
16,133
1,245
20,161
372
0
163,348
78,455
1,560
80,292
3,042
0
Escrow Account*
1,088
Balance Carried Forward to 2005
Transfer from the Budget
8,674
924,839
484,277
In 2004, TL426.7 trillion of the payments made from the Risk Account belong
to the Treasury guaranteed external credits and TL213.3 trillion belong to the
guarantees provided for the BOT projects. In addition, TL161.8 trillion of the
collections received to the Risk Account came from the undertaken repayment
guarantees and TL1.5 trillion from the payments made for the investment guarantee
provided to the BOT project. In 2004 compared to 2003, there has been a decrease of
36 percent in the payments and an increase of 107 percent in the collection amount.
In 2003, TL 924.8 trillion has been used from the Risk Account appropriation
which was determined as TL1.15 quadrillion. In 2004, the said appropriation has
been set at TL 1.75 quadrillion and TL484.3 trillion has been used. The fact that the
realized values stayed below the appropriation amount show that the proportion of
undertaken payments realized less than expected while the collection rate turned out
higher than expected.
Turkey for the undertaking of the repayments by the Treasury for Treasury guarantees. Detailed information can
be obtained from the February 2004 report.
11
The number includes the collections realized against the repayments from the Risk Account as well as the onlent credit and guaranteed credit fees.
51
When we look at the quarterly developments of the proportion of returns to
the payments in the Risk Account in 2003 and 2004, the average rate which had been
9 percent in 2003 increased to 25 percent in 2004 (Graph 35).
Graph 35: Proportion of Returns to Payments *
40
31
27
30
23
20
15
% 20
10
2
14
4
0
2003 Q1
2003 Q2
2003 Q3
2003 Q4
2004 Q1
Income/Payment
*Provisional
52
2004 Q2
2004 Q3
2004 Q4
Total Treasury Guaranteed External Debt Repayments and the Undertaken
Amount by the Treasury in 2004
During 2004, within the context of Treasury repayment guarantees, a total of USD1.7 billion
payment has been made. USD1.4 billion of the mentioned amount was paid by the institutions
themselves while USD295 million was undertaken by the Treasury. Similar to the previous years, in
2004, the highest amount of Treasury undertaken debt payments belongs to the local administrations
with a share of 91 percent. In this period, no debt was undertaken on behalf of the development and
investment banks.
Repayment Guaranteed Debt Service Realized in 2004 *
1500
1250
million $
1000
750
500
250
0
EBFs
SOEs
Dev.& Inv.
Local
Banks
Admin.
-
Total
Undertaken by the Treasury
11
15
269
295
Paid by the Institution
149
963
127
114
1,353
Total
160
978
127
383
1,648
*Provisional
In 2004, 18 percent of the repayments for the Treasury guaranteed debt was made by the
Treasury. 70 percent of the guaranteed debt service of the local administrations, 7 percent of the
guaranteed debt service of the extrabudgetary funds and 2 percent of the guaranteed debt service of
the SOEs were realized by the Treasury.
Rate of Undertaken Debt in 2004 *
100
90
80
70
60
% 50
40
30
20
10
0
100
98
93
82
70
30
18
7
2
EBFs
SOEs
Dev .& Inv .
Banks
Undertaken by the Treasury
*Provisional
53
Local Admin.
Total
Paid by the Institution
Analysis of the Debt Undertaken by the Treasury due to the Treasury Guaranteed
External Debt, 1999-2004
Between the years 1999-2004, there is a declining trend in undertaken Treasury guarantees
starting from 2002. The said rate decreased to 18 percent starting from 2004.
Rate of Undertaken Debt Between 1999-2004
58
60
52
52
52
50
40
%
27
30
20
18
10
0
1999
*
2000
2001
2002
2003
2004
*Provisional
When the following figure shows that there is a decline in the payments for the SOEs
especially in the last three years. While the proportion of the SOEs’ guaranteed debt undertaken
remained at around 50 percent until 2003, this proportion decreased to 12 percent in 2003 and 2
percent in 2004. Similarly, the proportion of undertaken guaranteed debt payments for the local
administrations declined from 81 percent in 2003 to 70 percent in 2004.
Rate of Undertaken Debt by Budget Categories between 1999-2004
%
100
90
80
70
60
50
40
30
20
10
0
1999
Dev.& Inv.Banks
* Provisional
2000
EBFs
2001
SOEs
2002
Annexed Budget
54
2003
2004
Local Administrations
6.4 REPAYMENT PROJECTION OF TREASURY GUARANTEED
DEBT
Within the framework of Treasury guaranteed loans, a total debt service of
USD471.7 million is foreseen in the last quarter of 2004. This amount includes
USD397.9 million principal, USD73.8 million interest payments. Based on the
guaranteed debt stock as of September 2004, between October 2004 and 2008 a total
of USD3.8 billion debt service is foreseen of which USD3.2 billion in principal and
USD663 million in interest payments. Guaranteed external debt stock service in the
said period form 58 percent of the total guaranteed debt repayments. Similarly, the
principal repayments form 59 percent of the total principal repayments which are in
the amount of USD3.4 billion (Graph 36).
Graph 36: Principal-Interest Breakdown of Projected Guaranteed Debt Service12 *
1,250
1,000
million $
750
500
250
0
Oct-Dec 04
2005
2006
2007
2008
Total
471.7
1109.4
905.4
741.5
619.0
Principal
397.9
916.6
744.5
611.0
514.0
Interest
73.8
192.8
160.9
130.5
105.0
* Provisional
Payments in the amounts of USD2.2 billion for the SOEs, USD938 million for
the local administrations, USD300 million for the extrabudgetary funds and
USD436.2 million for the investment and development banks are expected to be
made between the last quarter of 2004 and 2008 (Graph 37).
12
Projections are based on commitments and they are calculated by using 06/30/2004 dated cross rates. Given
the guaranteed debt service projection of USD264 million for extrabudgetary funds, USD1.4 billion for the
SOEs, USD701.7 million for the investment and development banks and USD393.5 million for the local
administrations, a total of USD2.8 billion principal and interest payments are expected to be made for the period
2009 and on.
55
Formatted: Bullets and
Numbering
Graph 37: Guaranteed External Debt Servicing Projections by Budget
Categories*
1200
million $
1000
800
600
400
200
0
Oct-Dec 04
2005
2006
2007
2008
Dev. & Inv. Banks
7.3
130.7
137.1
82.8
78.4
EBFs
47.3
94.3
57.2
52.0
49.5
Local Administrations
97.4
295.1
241.6
178.8
124.7
319.6
589.3
469.5
427.8
366.4
SOEs
* Provisional
56
7 FINANCIAL RECEIVABLES
13
7.1 TREASURY RECEIVABLES STOCK
The stock of receivables were TL50.2 quadrillion by the end of 2003 while it
increased to TL67.4 quadrillion by the end of 2004 (Table 33). Increase in the debt of
Savings Deposit Insurance Fund (SDIF) to Treasury constituted 87 percent of this
TL17.2 quadrillion increase.
Table 33: Treasury Receivables Stock
(Trillion TL)
2003
Amount
2004
Percentage
Amount
Percentage
X EXTRA BUDGETARY FUNDS
31,040
61.9
45,746
67.9
X
X
X
X
X
X
X
X
X
LOCAL ADMINISTRATIONS
SOEs
BANKS (*)
ANNEXED BUDGET
NON PROFIT INSTITUTIONS
NON BANK FINANCIAL INSTITUTIONS
NON MONETARY INSTITUTIONS
GENERAL BUDGET
REGULARTY BODIES
12,109
5,377
1,281
112
64
54
70
51
0.4
24.1
10.7
2.6
0.2
0.1
0.1
0.1
0.1
0.0
14,455
5,439
1,347
95
123
52
79
48
0.4
21.5
8.1
2.0
0.1
0.2
0.1
0.1
0.1
0.0
TOTAL
50,159
100
67,385
100
(*) Includes investment, development, private and public banks.
The proportion of extra budgetary funds was 62 percent by the end of 2003
whereas it increased to 68 percent by the end of 2004. The main reason for this
increase, as indicated above, was a jump in the debt of SDIF to Treasury. In this
context, by the end of 2004, proportions of local administrations and SOEs in
Treasury receivables stock decreased to 22 percent and 8 percent respectively (Table
33, Graph 38).
13
Receivable stock and collection figures are provisional.
57
Graph 38 :Breakdown of Receivables Stock by Budget Type
2004
2003
Local
Admin.
24.1%
SOEs
10.7%
Banks (*)
Other
2.6%
0.7%
Local
Admin.
21.5%
SOEs
8.1%
Banks (*)
Other
2.0%
0.6%
Extra
Budgetary
Funds
67.9%
Extra
Budgetary
Funds
61.9%
(*) Includes investment, development, private and public banks.
By the end of 2004, Treasury receivables stock due to on lent domestic debt
increased by 50 percent compared to end of 2003 and reached TL45.2 quadrillion.
During that period, receivable stock due to external debts which also includes buildoperate-transfer projects increased by 11 percent and reached TL22.1 quadrillion
(Table 34).
Table 34: Breakdown of Treasury Receivables Stock by Sources
(Trillion TL)
2003
Amount
X
X
X
2004
Percentage
Amount
Percentage
EXTERNAL DEBT
- On-Lent
- Guaranteed
DOMESTIC DEBT
BUILD-OPERATE-TRANSFER PROJECTS
16,937
9,322
7,614
30,243
2,979
33.8
18.6
15.2
60.3
5.9
18,371
9,386
8,984
45,238
3,776
27.3
13.9
13.3
67.1
5.6
TOTAL
50,159
100
67,385
100
(*) Includes investment, development, private and public banks.
When the breakdown of the receivables stock is analyzed by sources, it can be
seen that proportion of on lent domestic debt which was 60 percent by the end of
2003 increased to 67 percent by the end of 2004. Share of undertaken guarantees and
on lent external debt which was 34 percent by the end of 2003 decreased to 27 percent
by the end of 2004. By the end of 2004, share of receivables due to build-operatetransfer projects which were 6 percent at the end of 2003 remained at the same level
(Table 34, Graph 39).
58
Graph 39: Breakdown of Receivables Stock by Sources
2004
2003
On-Lent
18.6%
Guaranteed
15.2%
Guaranteed
13.3%
On-Lent
13.9%
BOT
Projects
5.9%
BOT
Projects
5.6%
Domestic
Debt
60.3%
Domestic
Debt
67.1%
SDIF which had the highest share of 56 percent by the end of 2003 increased its
share to 65 percent by the end of 2004. Municipality of İzmit Greater City followed
SDIF with 7 percent and during that period proportion of the municipality in total
remained the same. In the same period while proportion of Electricity Production
Inc. decreased from 5 percent to 3 percent, proportion of Municipality of Ankara
Greater City was 3 percent (Graph 40).
Graph 40: Breakdown of Receivables Stock by Institutions
2003
2004
56%
65%
7%
26%
Savings Deposit Insure Fund
Electricity Production Inc.
Munic. of Ankara Greater City
3% 3%
5%
22%
Munic. of İzmit Greater City
Public Participation Fund
Other
Savings Deposit Insure Fund
Electricity Production Inc.
Other
3%
3%
7%
Munic. of İzmit Greater City
Munic. of Ankara Greater City
Proportion of outstanding overdue receivables which constituted 36 percent of
receivables stock by the end of 2003 increased to 47 percent by the end of 2004 (Table
35).
59
Table 35: Breakdown of Treasury Receivables Stock
(Trillion TL)
2003
Amount
2004
Percentage
Amount
Percentage
X OUTSTANDING OVERDUE RECEIVABLES
17,988
36
31,395
47
X PROJECTED RECEIVABLES
32,171
64
35,990
53
50,159
100
67,385
100
TOTAL
7.2 OUTSTANDING OVERDUE RECEIVABLES
Outstanding overdue receivables which were TL18 quadrillion by the end of
2003 increased about 75 percent and reached TL31.4 quadrillion in 2004 (Table 36). 69
percent of TL13.4 quadrillion increases in outstanding overdue receivables were due
to increase in outstanding overdue debt of SDIF to Treasury. Municipality of İzmir
Greater City which had no outstanding overdue receivables by the end of 2003 had
TL1.1 quadrillion outstanding overdue debts by the end of 2004. This development
was second important effect of increase in outstanding overdue receivables. On the
other hand in the mentioned period, outstanding overdue debt stock of Municipality
of İzmit Greater City had increased approximately to TL928 trillion.
Table 36: Outstanding Overdue Receivables (Trillion TL)
2003
Amount
X EXTRA BUDGETARY FUNDS
X LOCAL ADMINISTRATIONS
X SOEs
X ANNEXED BUDGET
X NON MONETARY INSTITUTIONS
TOTAL
2004
Percentage
Amount
Percentage
10,937
6,580
60.8
36.6
20,224
10,519
64.4
33.5
433
21
17
2.4
0.1
0.1
596
19
38
1.9
0.1
0.1
17,988
100
31,395
100
Extra budgetary funds continue to have the largest proportion in outstanding
overdue receivables in 2004 like in 2003; their proportion which was 61 percent by
the end of 2003 increased to 64 by the end of 2004. On the other hand, proportion of
local administrations which was 37 percent by the end of 2003 decreased to 34
percent (Table 36, Graph 41).
60
Graph 41: Breakdown of Outstanding Overdue Receivables Stock by Budget Type
Extra
Budgetary
Funds
60.8%
Extra
Budgetary
Funds
64.4%
2003
Local
Admin.
36.6%
Other
2.6%
2004
Local
Admin.
33.5%
Other
2.1%
When the breakdown of outstanding overdue receivables stock is analyzed by
sources, by the end of 2004 on lent domestic debts were increased 86 percent
compared to those by the end of 2003 and reached TL19.7 quadrillion. In the
mentioned period, external debt including build-operate-transfer projects had
increased by 55 percent and reached TL11.7 quadrillion (Table 37).
Table 37: Breakdown of Outstanding Overdue Receivables by Source
(Trillion TL)
2003
Amount
X
X
X
2004
Percentage
Amount
Percentage
EXTERNAL DEBT
- On-Lent
- Guaranteed
DOMESTIC DEBT
BUILD-OPERATE-TRANSFER PROJECTS
4,709
945
3,764
10,455
2,824
26.2
5.3
20.9
58.1
15.7
8,021
1,378
6,642
19,716
3,658
25.5
4.4
21.2
62.8
11.7
TOTAL
17,988
100.0
31,395
100.0
By the end of 2003 outstanding overdue receivables due to domestic debt had
the highest proportion with 58 percent and their proportion increased to 63 percent
by the end of 2004. In the mentioned period while proportion of undertaken
guarantees and on lent external debt remained almost the same, outstanding overdue
receivables due to build-operate-transfer projects decreased from 16 percent to 12
percent (Table 37, Graph 42).
61
Graph 42: Breakdown of Outstanding Overdue Receivables Stock by Sources
2004
2003
Domestic
Debt
58.1%
Domestic
Debt
62.8%
BOTs
15.7%
BOTs
11.7%
On-Lent
5.3%
Guaranteed
20.9%
Guaranteed
21.2%
On-Lent
4.4%
As a result of these developments, SDIF which had the highest share of 51
percent in outstanding overdue receivables by the end of 2003 increased its share to
58 percent by the end of 2004. Municipality of İzmit Greater City which had the
second highest share of 19 percent by the end of 2003 decreased its share to 14
percent. Share of abolished Public Participation Fund decreased from 9 percent to 5
percent and share of Gaziantep Water and Sewerage Administration decreased from
4 percent to 3 percent. Municipality of İzmir Greater City which had no outstanding
overdue receivables by the end of 2003 had 4 percent share by the end of 2004 (Graph
43).
Graph 43: Outstanding Overdue Receivables Stock
2003
2004
58%
19%
51%
13%
4%
4%
14%
9%
16%
3%
4%
5%
Savings Deposit Insure Fund
Munic. of İzmit Greater City
Savings Deposit Insure Fund
Munic. of İzmit Greater City
Public Participation Fund
GASKİ
Public Participation Fund
Munic. of İzmir Greater City
Munic. of Adana Greater City
Other
GASKİ
Other
62
7.3 PROJECTED RECEIVABLES
Projected receivables which were TL32 quadrillion by the end of 2003 increased
to TL36 quadrillion by the end of 2004. In the mentioned period projected receivables
from extra budgetary funds increased about TL5.4 quadrillion and reached TL26
quadrillion. TL2.3 quadrillion of this increase was due to on lent GDBSs which were
issued to SDIF during the process of takening over of Pamukbank by T. Halk Bank.
In the mentioned period, projected receivables from local administrations decreased
TL1.6 quadrillion and became TL3.9 quadrillion (Table 38).
Table 38: The Stock of Projected Receivables
(Trillion TL)
2003
Amount
X
X
X
X
X
X
X
X
X
X
2004
Percentage
Amount
Percentage
EXTRA BUDGETARY FUNDS
LOCAL ADMINISTRATIONS
SOEs
BANKS
ANNEXED BUDGET
NON PROFIT INSTITUTIONS
NON BANK FINANCIAL INSTITUTIONS
NON MONETARY INSTITUTIONS
GENERAL BUDGET
REGULARTY BODIES
20,103
5,528
4,945
1,281
90
64
54
53
51
0.4
62.5
17.2
15.4
4.0
0.3
0.2
0.2
0.2
0.2
0.0
25,522
3,936
4,843
1,347
77
123
52
41
48
0.4
70.9
10.9
13.5
3.7
0.2
0.3
0.1
0.1
0.1
0.0
TOTAL
32,171
100
35,990
100
Extra budgetary funds which had 63 percent share in projected receivables by the
end of 2003 had higher share with 71 percent by the end of 2004. In the mentioned
period, share of local administrations decreased from 17 percent to 11 percent and
share of SOEs decreased from 15 percent to 14 percent (Table 38, Graph 44).
Graph 44: Breakdown of Projected Receivables by Budget Type
Extra
Budgetary
Funds
62.5%
Other
5.0%
2003
SOEs
15.4%
Extra
Budgetary
Funds
70.9%
Local
Admin.
17.2%
Other
4.7%
63
2004
SOEs
13.5%
Local
Admin.
10.9%
By the end of 2004, while projected receivables due to external debt including
build-operate-transfer projects diminished by TL1.9 quadrillion and became TL10.5
quadrillion, projected receivable due to on lent domestic debt rose by TL5.7
quadrillion and reached TL25.5 quadrillion (Table 39).
Table 39: Breakdown of Projected Receivables by Source
(Trillion TL)
2003
Amount
X
X
X
2004
Percentage
Amount
Percentage
EXTERNAL DEBT
- On-Lent
- Guaranteed
DOMESTIC DEBT
BUILD-OPERATE-TRANSFER PROJECTS
12,227
8,377
3,850
19,788
155
38.0
26.0
12.0
61.5
0.5
10,350
8,008
2,342
25,522
117
28.8
22.3
6.5
70.9
0.3
TOTAL
32,171
100
35,990
100
By the end of 2004, share of domestic debts in projected receivables stock
increased by 9 points compared to end of 2003 and reached 71 percent while the
proportion of undertaken guarantees and on lent external debt decreased by 10
points and became 29 percent. The main reason of the decline in projected
receivables due to external debt was the decrease in projected receivables due to
undertaken guarantees. By the end of 2004, built-operate-transfer projects constituted
0.3 percent of projected receivables stock (Table 39, Graph 45).
Graph 45: Breakdown of Projected Receivables by Source
Domestic
Debt
61.5%
2003
Domestic
Debt
70.9%
2004
BOTs
0.3%
BOTs
0.5%
Guaranteed
12.0%
On-Lent
26.0%
Guaranteed
6.5%
On-Lent
22.3%
By the end of 2004, in projected receivables stock, while mixed interest
receivables increased by TL5.6 quadrillion compared to end of 2003, interest free
receivables decreased by TL1.1 quadrillion. In the mentioned period, variable and
fixed interest receivables decreased by TL487 trillion and TL235 trillion respectively
(Table 40).
64
Table 40: Interest Composition of Projected Receivables
(Trillion TL)
2003
X EXTERNAL DEBT
- On-Lent
- Guaranteed
X DOMESTIC DEBT
X BOT PROJECTS
X TOTAL
2004
Interest - Free
4,126
1,541
2,585
0
155
Fixed
5,104
5,082
22
0
0
Variable
2,501
1,281
1,220
0
0
Mixed (*)
497
473
24
19,788
0
Interest - Free
3,044
1,487
1,557
0
117
Fixed
4,869
4,789
80
0
0
Variable
2,014
1,331
683
0
0
Mixed (*)
423
400
23
25,522
0
4,281
5,104
2,501
20,285
3,161
4,869
2,014
25,945
(*) Varies according to commitment provisions.
By the end of 2004, while mixed interest receivables constitute about 72
percent of stock, about 14 percent was composed of by fixed interests. Shares of
interest free and variable interest receivables were about 9 percent and 6 percent
respectively (Table 40, Graph 46).
Graph 46: Interest Composition of Projected Receivables
2003
2004
Interest Free
13.3%
Interest Free
8.8%
Fixed
15.9%
Fixed
13.5%
Variable
5.6%
Mixed (*)
63.1%
Variable
7.8%
Mixed (*)
72.1%
(*) Varies according to commitment provisions.
7.4 COLLECTIONS
In 2004 Treasury’s collections from receivables were TL1.5 quadrillion. In the
mentioned period, there were TL589 trillion collections from SOEs, TL411 trillion
from extra budgetary funds, TL368 trillion from local administrations and TL140
trillion from banks (Table 41).
65
Table 41: Breakdown of Collections by Borrower
(Trillion TL)
2003
Amount
X
X
X
X
X
X
X
X
X
X
2004
Percentage
Amount
Percentage
EXTRA BUDGETARY FUNDS
LOCAL ADMINISTRATIONS
SOEs
BANKS
ANNEXED BUDGET
NON PROFIT INSTITUTIONS
NON BANK FINANCIAL INSTITUTIONS
NON MONETARY INSTITUTIONS
GENERAL BUDGET
REGULARTY BODIES
36
473
1,080
340
17
1
5
17
1
0
2
24
55
17
1
0
0
1
0
0
411
368
589
140
20
3
5
1
1
0
27
24
38
9
1
0
0
0
0
0
TOTAL
1,970
100
1,538
100
While in 2003, 54.8 percent of the total collection was realized from SOEs, in
2004 this ratio decreased to 38.8 percent. In the mentioned period while collection
realized from extra budgetary funds increased from 1.8 percent to 26.8 percent, share
of collections realized from local administrations remained same (Graph 47). The
main reason of the increase in the collections from extra budgetary funds in 2004 was
the prepayment of all projected debts of Privatization Administration to Treasury.
In
2004,
21
percent
of
collections
was
realized
from
Privatization
Administration while 20 percent was realized from Electricity Production Inc.
(EÜAŞ).
Graph 47: Breakdown of Collections by Institutions
54.8
60
50
38.3
%
40
30
24.0
23.9
26.8
20
10
1.8
2.1
1.9
0
2003
SOEs
Local Admin.
2004
Extra Budgetary Funds
Other
While 96.5 percent of collections in 2003 was paid by beneficiary, in 2004 this
ratio became 90.1 percent. In the mentioned period, while payment by beneficiary
decreased by TL515 trillion, cutting from tax share receivables by the Ministry of
Finance increased by TL60 trillion (Table 42).
66
Table 42: Breakdown of Collections by Source
(Trillion TL)
2003
Amount
X
X
X
X
X
X
X
X
PAYMENT BY BENEFICIARY
TAX SHARE RECEIVABLES (MIN.OF.FINANCE)
LAW NUMBER 6183
TAX SHARE RECEIVABLES (İLLERBANK)
OFFSET TO DUTY LOSSES
TRANSFERRED AMOUNT FROM ANOTHER BENEFICIARY
OFFSET TO BUDGET APPROPRIATION
OFFSET TO DRAWING AMOUNT
TOTAL
2004
Percentage
1.901
46
7
2
0
9
5
0
1.970
Amount
96,5
2,3
0,3
0,1
0,0
0,5
0,3
0,0
100,0
Percentage
1.386
106
11
0
35
0
0
0
1.538
90,1
6,9
0,7
0,0
2,3
0,0
0,0
0,0
100,0
In the year of 2003, the highest beneficiary payment was performed by SOEs,
whereas local administrations followed them by an amount of TL413 trillion. In the
year of 2004, TL547 trillion and TL411 trillion were largest payments contributed by
SOEs and EBFs respectively. (Table 43).
Table 43: Breakdown of Beneficiary Payments by Source
(Trillion TL)
2003
Amount
X EXTRA BUDGETARY FUNDS
X LOCAL ADMINISTRATIONS
X SOEs
X
X
X
X
X
BANKS
ANNEXED BUDGET
NON PROFIT INSTITUTIONS
NON BANK FINANCIAL INSTITUTIONS
NON MONETARY INSTITUTIONS
2004
Percentage
Amount
Percentage
36
413
1.9
21.7
411
261
29.7
18.8
1,075
56.6
547
39.5
340
12
1
5
17
17.9
0.6
0.1
0.3
0.9
140
17
3
5
1
10.1
1.2
0.2
0.3
0.1
0.1
X GENERAL BUDGET
1
0.0
1
X REGULARTY BODIES
0
0.0
0
0.0
1,901
100
1,386
100
TOTAL
In 2004, 80 percent of collections was for principal repayments and 20 percent
was for interest payments, while those were 75 percent and 25 percent respectively
by the end of 2003 (Table 44).
Table 44: Breakdown of Collection by Type of Payment
(Trillion TL)
2003
Amount
X PRINCIPAL
X INTEREST, CHARGE, OVERDUE INTEREST
TOTAL
67
2004
Percentage
Amount
Percentage
1,481
75
1,237
489
25
300
80
20
1,970
100
1,538
100
In 2004, TL159 trillion of total collection was allocated to Risk Account
whereas TL1.4 quadrillion was transferred to Treasury Account no. 411 14 (Table 45).
Table 45: Breakdown of Collection by Accounts
(Trillion TL)
2003
Amount
X RİSK ACCOUNT (*)
X 411- TREASURY ACCOUNT
TOTAL
2004
Percentage
Amount
Percentage
77
1,892
4
96
159
1,378
10
90
1,970
100
1,538
100
(*) Mentioned figures includes only collection from receivables, does not include on lent and guarantee fees.
14
Collections from receivables stock either belong to Risk Account or to Treasury account no. 411 according to
the origin of the commitment. According to this, on lent credits and collections from guarantees that are
undertaken before the establishment of Risk Account are transferred to Treasury account no. 411.
68
8 RISK MANAGEMENT
8.1 BENCHMARKS FOR 2005
The Law (No 4749) of March 28, 2002, on the Public Financing and Debt
Management and "Regulation on the Principles and Procedures for the Coordination
and Administration of Debt and Risk Management", published in the Official Gazette
of September 1, 2002, defines the basic principles of debt and risk management as
follows:
a) the maintenance of a sustainable, transparent and accountable borrowing
policy in conformity with monetary and fiscal policies taking account of
macroeconomic balances, and
b) the fulfillment of financing requirements at the lowest possible cost in the
medium and long term in the context of risk level which determined in consideration
of domestic and external market conditions and cost factors.
The structure of the borrowing is determined by the strategic benchmarks which
are in accordance with the risk and cost choice targeted in the debt management.
These benchmarks are obligatory for the borrowers and also used for performance
measurement. Debt management procedures like additional borrowing and swaps
are applied within the framework of these strategic benchmarks which include risk
and cost choice.
Designed to ensure an increase in transparency of public debt management and
effective, performance-based borrowing at minimum cost and at a prudent level of
risk, the Undersecretariat of Treasury started to the implementation of strategic
benchmarks since 2004. Also, the “Cost at Risk” approach is used in the
determination of these strategic benchmarks.
69
Strategic Benchmarks for 2005-2007 Period
- To raise funds mainly in TL.
- The use fixed rate, TL instruments as the major source of domestic borrowing.
- To increase the average maturity of domestic borrowing taking into account market
conditions.
- To keep a certain level of cash reserves throughout the year to reduce the liquidity risk
associated with cash and debt management.
8.2 AVERAGE TIME TO MATURITY OF STOCK
8.2.1
AVERAGE TIME TO MATURITY OF DOMESTIC DEBT STOCK
The average maturity of the cash domestic borrowing realized as 14.7 months
at 2004, showing an increase of 3.2 months with respect to the year 2003. In 2004,
despite the increase in borrowing maturities, as the IMF credits and the bonds in
Compulsory Saving Account, which were followed in cash domestic debt stock,
converged to maturity, the average time to maturity of cash domestic debt stock
showed a decline of 0.6 months when compared to the end of 2003.
In this period, the average time to maturity of non-cash domestic debt stock
declined to 5.7 months. In spite of the long term non-cash issuances in this period,
the main rationale behind this decline was the convergence of the maturities of noncash domestic debt securities.
As of the end of 2004, the average time to maturity of domestic debt stock
realized as 20.6 months (Table 46).
Table 46: Average Time to Maturity of Domestic Debt Stock (Months)
Cash
Non-cash
Total (*)
2003
2004
12.4
51.2
25.1
11.8
45.5
20.6
(*) Weighted average time to maturity of domestic debt stock, calculated by taking into account the weights of cash and noncash domestic debt stocks and their average time to maturities.
70
8.2.2
AVERAGE TIME TO MATURITY OF EXTERNAL BOND STOCK
Average time to maturity of external bond stock which was 5.4 years at the
end of 2003 lengthened to 7 years as of the end of 2004 (Table 47).
Regarding the external bonds by issue markets; the global bonds which
realized at USD12.7 billion at the end of 2003, increased to the amount of USD15.9
billion with the net issues of USD3.2 billion launched during the year. Together with
the new issues, the average time to maturity of external bond stock lengthen to 10
years from 8.4 years in 2003.
In terms of Euro bonds, USD570 million (Euro400 million) net repayment and
approximetely USD1 billion exchange rate appreciation took place in 2004. Thus, the
Euro bond stock which was USD13.3 billion at the end of 2003, increased to USD13.8
billion as of the end of 2004. Together with the new issues, the average time to
maturity of Euro bond stock lengthened to 3.2 years from 2.8 years in 2003.
The Samurai bonds which were in the stock as of the end of 2003 have been
totally repaid during 2004.
Table 47: Average Time to Maturity of External Bond Stock (Year)
‹
‹
‹
X
Global Bonds
Euro Bonds
Samurai Bonds
Total
2003
2004
8.4
2.8
0.4
5.4
9.9
3.2
..
6.8
8.3 DURATION
8.3.1
DURATION OF TL-DENOMINATED CASH DOMESTIC DEBT STOCK
Duration of TL-denominated cash domestic debt stock was 5.2 months by the
end of 2003. Beginning in the late 2003, with longer borrowing maturities, duration of
TL-denominated cash domestic debt stock has lengthen and in the JanuarySeptember 2004 period floated between band of 5-6 months. However, in the last
quarter of 2004, especially by the issuance of 3 year fixed-coupon bond in October,
71
duration of TL-denominated cash domestic debt stock has increased over 6 months
and lengthen to 6.6 months level by the end of 2004 (Graph 48). The improvement
explained above highlighted that the TL-denominated cash domestic debt stock’s
sensitivity to interest rate volatility was continued to decrease. This situation means
that any change in the market interest rates will be reflected to the TL-denominated
cash domestic debt stock in 6.6 month.
Graph 48: Duration of the TL-Denominated Cash Domestic Debt Stock (*)
7,0
6,5
Year
6,0
5,5
5,0
4,5
O
ct
.0
3
N
ov
.0
3
D
ec
.0
3
Ja
n.
04
Fe
b.
04
M
ar
.0
4
A
pr
.0
4
M
ay
.0
4
Ju
n.
04
Ju
l.0
4
A
ug
.0
4
Se
p.
04
O
ct
.0
4
N
ov
.0
4
D
ec
.0
4
4,0
(*) Provisional
8.3.2
DURATION OF EXTERNAL BOND STOCK
Average duration of the bonds issued by the Treasury in foreign markets was
about 4.1 year by the end of 2004 (Graph 49). By the issues made at the beginning of
2004, duration of external bond stock has risen significantly and after January, stayed
at a level of 4 year during the year which was at a level of 3.4 by the end of 2003.
72
Graph 49: Duration of the External Bond Stock (*)
4,4
4,2
Year
4,0
3,8
3,6
3,4
3,2
4
ec
.0
4
D
N
ov
.0
ct
.0
4
O
4
Se
p.
04
4
ug
.0
A
Ju
l .0
4
M
ay
.0
4
Ju
n.
04
4
pr
.0
A
4
M
ar
.0
Fe
b.
0
Ja
n.
04
3
ec
.0
3
D
N
ov
.0
O
ct
.0
3
3,0
(*) Provisional
8.4 REAL INTEREST RATE OF DOMESTIC DEBT STOCK
Expected annual compounded real interest rate of domestic debt stock by the
end of December 2004, has diminished 2.4 points compared to the end of 2003 and
calculated as 9.5 percent.
The real interest expectation of the stock, for the January-April 2004 period
was realized within the band of 11.2%-12.3%. Due to the developments in
international and domestic markets, exchange rate and inflation fluctuations were
observed, besides the increase in nominal interest rates especially the increase in
exchange rates caused the calculated real interest rate expectations to increase.
After June, due to the decrease in exchange rates and nominal interest rates,
calculated real inflation expectation on stock showed a decreasing trend. Calculated
11.7 percent as of September, expected real interest rate of domestic debt stock was
calculated below 10 percent for October, November and December (Table 48).
73
Table 48: Annual Compounded Real Interest of Total Domestic Debt Stock
Jan.-Dec. 2004 (%) (*)
March
April
May
June
July
Total Domestic Debt Stock
Public
TL
FX Denominated/Indexed
January February
11,4
6,8
8,5
-1,2
11,2
7,9
8,5
4,6
11,3
7,3
9,6
-4,6
12,3
8,2
10,7
-4,6
16,8
13,2
14,0
9,1
16,5
14,6
15,0
12,4
13,9
11,4
12,5
5,1
August September
12,0
8,5
9,1
4,8
11,7
9,1
8,7
11,6
October November December
9,6
6,8
7,1
4,7
8,4
6,4
7,3
0,8
9,5
7,5
9,0
-2,6
Market
TL
FX Denominated/Indexed
14,9
19,9
-1,7
13,7
19,4
-6,6
14,2
18,8
-3,1
15,2
18,5
2,3
19,3
19,4
18,9
17,8
19,2
12,1
15,5
17,5
7,3
14,2
15,2
10,4
13,2
15,2
6,0
11,3
14,4
0,2
9,6
13,7
-5,2
10,7
14,6
-4,6
Expected Inflation (**)
12,4
11,8
11,1
10,5
11,2
10,4
10,1
9,7
9,5
8,8
9,2
8,7
(*) Provisional
(**) Based on CBT's "Next 12 Months Annual CPI Expectation" Questionnaire
8.5 PUBLIC SECTOR NET DEBT STOCK
As of September 2004 public sector net debt stock realized at a total of TL272.5
quadrillion, TL7.2 quadrillion increased compared to the end of June 2004 (Table 49).
While gross debt stock has risen 3.4 percent, the total of assets has risen 7.2 percent in
this period.
Table 49: Public Sector Net Debt Stock (*)
Trillion TL
‹
2003
2004 Q1
2004 Q2
2004 Q3
72.170
160.586
216.357
251.389
251.494
265.252
272.512
86.183
190.595
257.617
297.696
299.740
317.949
329.270
Rest of the Public Sector
B- External Debt
54.152
125.458
154.798
201.319
210.453
215.881
224.509
51.536
122.157
149.870
194.387
203.708
209.119
217.571
2.616
3.300
4.928
6.932
6.746
6.762
6.937
32.031
65.138
102.819
96.378
89.287
102.068
104.762
27.204
55.779
92.880
88.548
82.016
94.374
97.236
Rest of the Public Sector
4.828
9.359
9.939
7.830
7.271
7.695
7.525
II- Central Bank Net Assets
Central Government
‹
2002
l- Total Public Sector Debt Stock (Gross)
Central Government
‹
2001
Total Public Sector Net Debt (I-II-III-IV)
A-Domestic Debt
‹
2000
11.004
22.854
25.375
24.733
24.321
27.423
28.739
Net Foreign Assets
7.598
-2.324
13.660
17.262
17.111
22.460
25.430
Other Asset and Obligations (Net)
3.406
25.178
11.715
7.471
7.210
4.963
3.309
III- Public Sector Deposits
2.647
4.973
10.931
12.645
14.015
14.183
15.802
Central Government
1.038
1.213
5.099
5.053
6.118
6.751
7.497
Rest of the Public Sector
1.609
3.760
5.832
7.591
7.897
7.433
8.306
362
2.182
4.954
8.929
9.909
11.091
12.217
IV-Unemployment Insurance Fund Net Assets
Memo Items
X
Net External Debt Stock
24.433
67.461
89.159
79.115
72.176
79.608
79.332
X
Net Domestic Debt Stock
47.737
93.125
127.198
172.274
179.319
185.643
193.180
(*)Provisional
As shown in the below chart, the share of public sector net debt stock in GNP
presents a falling trend since the year 2002, after reaching its peak level of 91 percent
74
in 2001. As the nominal value of the net debt stock increased, its share in the
economy decreased, indicating a reduction in the debt burden. The ratio of public
sector net debt stock to GNP which was 78.7 percent at the end of 2002 declined to
70.5 percent as of the end of 2003. For the year 2004, the ratio of public sector net debt
stock was expected to decline roughly 6.5 points compared to the previous year level
and fall to 64-65 percent of GNP. Underlying cause of this development was the
positive reflection of high primary surplus performance together with the fiscal and
monetary policies carried out in 2004 on interest and exchange rates in the market.
Graph 50: Public Sector Net Debt Stock (*)
(Quadrillion TL)
400
(%)
100
91.0
78.7
300
70.5
60
57.5
200
80
40
100
20
0
0
2000
Net External Debt Stock
2001
2002
Net Domestic Debt Stock
*Provisional
75
2003
Public Net Debt Stock/GNP(%)
APPENDICES
APPENDIX 1: DEFINITIONS
Allocation of External Debt: A foreign financing facility obtained by the
Undersecretariat from any foreign financing source and disbursed by the
general/annexed budget institutions in accordance with the purpose of the related
agreement in order to promote development in various sectors of the economy
or/and to meet the financial requirement.
Benchmark Issuance (Security): Government Domestic Borrowing Securities
(GDBSs) designated by the Undersecretariat of Treasury for which the Primary
Dealers are obliged to provide price quotations in the secondary markets. GDBSs that
have high liquidity in the secondary markets are also called benchmark securities.
Build-Operate Model: A project financing model where public investments
requiring advanced technology, know-how and high capital investments are made
through the participation of private sector and foreign capital, in other words, with
non budgetary funds and the ownership of the facilities remains on the investors.
Build-Operate-Transfer Model: A project financing model where public investments
requiring advanced technology, know-how and high capital investments are made
through the participation of private sector and foreign capital, in other words, with
non budgetary funds, and the investor company transfers the facilities after the
expiry date of the agreement to the State at no cost and debt free.
Cash Borrowing: Type of borrowing that generates cash inflow for the Treasury at
the time of issuance.
Direct Issuance Method: A method of issuance performed by the Treasury as a
means of financing the budget to a specific counterparty at a pre-determined
amount.
Disbursement of Project Loans: Calculated on the basis of total cash withdrawals for
a period from project credits received either during that period and/or previous
ones.
Duration: It is a measure of sensitivity of bond price to interest rate movements.
Although there are different types of duration, government debt offices use
76
“Macauley Duration” to measure of sensitivity of bond price to interest rate
movements. Macauley Duration calculates the duration that a bond is affected by
interest rate movements. The government is not affected by the interest rate
movements after the issuance of a discounted bond (a bond that pays interest only at
maturity), it is affected at maturity when the debt is renewed. The duration of a
discounted bond is equal to the time to maturity whereas the duration of a fixed
couponed bond is equal to the formula in Appendix 2. Appendix 2 contains detailed
information related to duration.
Early Redemption: The repayment of a debt, including its accrued interest and
principal, prior to its date of maturity.
EMBI and EMBI+ Indices: EMBI and EMBI+ (Emerging Market Bond Index) are
indices developed by JP Morgan in order to monitor emerging markets bonds’
performances. These indices act as benchmarks facilitating investors to measure their
own portfolio performances and make risk-yield analyses. The fact that the bonds
constituting the index were actually chosen deliberately among the most liquid
bonds ensures that the index reflects the market accurately and the investors can
make up portfolios similar to the indices. EMBI had been calculated since 31st of
December 1990 as an index monitoring yields on USD denominated Brady and
similar re-structured bonds of emerging markets, and was discontinued as of 28th of
June 2002. EMBI+ has been calculated since 31st of December 1993 as an extension of
EMBI. EMBI+, unlike EMBI, includes not only the Brady bonds, but also the liquid
international bonds, domestic bonds and other debts of emerging market countries.
There is a strong correlation between these two indices. Country weights in the
EMBI+ index depend on the liquidity of the underlying bonds and total market
capitalization of the particular country’s bonds.
Government Domestic Borrowing Security (GDBS): Securities issued in the
domestic markets by the Treasury.
Grant: Financial aid in kind and/or in cash, obtained by Republic of Turkey from
any external financing source without any obligation of repayment and the financial
aid in cash provided by Republic of Turkey to foreign countries.
77
Gross Borrowing: The total of domestic and foreign borrowing.
Net Borrowing: The difference between total gross borrowing (domestic and foreign)
and the principal payments.
Non-Cash Borrowing: Type of borrowing that does not generate any cash inflow for
the Treasury at the time of issuance.
Offsetting Transactions: Issuing GDBSs instead of paying out principal and/or
interest of GDBSs.
On-account Transactions: The issuance of new GDBSs in place of the principal
and/or accrued interest of another GDBSs issued before.
Onlending of External Debt:External financing obtained by the Undersecretariat of
Treasury from any foreign financing source and onlent to the public agencies and
establishments not included in the general and annexed budget and to investment
and development banks without being bound by the terms and conditions of the
related agreement when necessary, in order to promote development in various
sectors of the economy and/or to meet the financial requirements
Primary Dealership System: It is a system which accords rights and imposes
obligations to banks which are selected according to predetermined criteria in order
to increase the efficiency of GDBS auctions and the secondary market of those
securities.
Program Financing: A financing facility obtained from any external financing source
by the Treasury, either directly or under its guarantee, in order to meet the public
finance requirement within the framework of macroeconomic programs of the
country.
Project Financing: Financing facility obtained from an external financing source for
realization of projects.
Project Loans Provided: Calculated on the basis of the actual receipt of amounts
committed in project credit agreements signed during the period of the agreement.
Risk Account: Undersecretariat of Treasury’s account which is established at the
Central Bank of Turkey in accordance with the provisions of Law no. 4749 “Law on
78
Regulating Public Finance and Debt Management.” All the amounts which are paid
by the Undersecreatariat of Treasury for the Treasury Guarantees and payments
within the context of risk management that are not possible to foresee beforehand are
met from the risk account. This account cannot be used for any purpose other than
those conditions indicated in the Law.
Special Category Government Domestic Borrowing Securities Issued for
Onlending Purposes: Securities issued by the Treasury for public institutions by
debiting those institutions.
Special Category Government Domestic Borrowing Securities: Securities which
have been issued under the relevant legislation and the Budget Laws of the relevant
year and against which no cash inflow is obtained.
Swap: The financial instrument which enables to change the cash-flows regarding
the public debt directly or indirectly between the Treasury and its counterparties.
Switching: The switching of existing securities with another security.
Tap Method: The issuance method by which GDBSs are tendered at pre-determined
prices via the Central Bank.
Transfer of External Debt: External financing facility which is obtained by the
Undersecretariat of Treasury from any foreign financing source and transferred to
the public agencies and establishments which are not included in the general and
annexed budget and to banks in order to promote development in various sectors of
the economy or/and to meet the financial requirements. The facility is transferred
together with the financial terms and conditions of the related agreement, provided
that such establishments shall be the principal debtor.
Transfer of Operation Right: The operation of a publicly owned facility by private
companies for a specific period of time on condition that it remains public property.
Treasury Receivables: Claims arising from Treasury Guarantees provided for
financing facilities obtained from any foreign financing source or from onlending of
such facilities or from the transactions which are not mentioned above, but stem from
relevant legislation and result in undertaking of payments by the Treasury and/or
79
claims from the Government Domestic Borrowing Securities issued by the Treasury
for onlending purposes.
Treasury Counter – Guarantee: Guarantees provided against the guarantees
provided by external financing sources within the framework of guarantee for the
financing facilities provided from international markets by state economic
enterprises, establishments subject to provisions of private law with more than
50percent of their capital belonging to the state, funds, state banks, investment and
development
banks,
municipalities
of
greater
cities,
municipalities
and
establishments affiliated to municipalities, and other local government agencies as
debtors. Treasury counter guarantees also cover guarantees provided against the
guarantees by a foreign financing source with regard to projects to be realized within
build-operate-transfer, build-operate, transfer of operational right and similar
financing models. Those guarantees are limited with the Treasury Guarantees
envisioned in the legislation and conditions to be discussed by the Undersecretariat
within the framework of guarantee programs allocated by any foreign financing
source.
Treasury Country Guarantee: Guarantees provided for repayment of financing
taken from any external financing source by foreign countries.
Treasury Guarantees: Treasury Reimbursement Guarantee, Treasury Investment
Guarantee, Treasury Counter – Guarantee and Treasury Country Guarantee or any
one of these.
Treasury Investment Guarantee: Guarantees provided for build-operate-transfer,
build-operate, transfer of operational right and similar financing models in
accordance with the provisions of the legislation and limited with these.
Treasury Reimbursement Guarantee: Guarantees provided for reimbursement of
external debt provided from external financing facility by state economic enterprises,
establishments subject to provisions of private law with more than 50 percent of their
capital belonging to the state, funds, state banks, investment and development banks,
municipalities of greater cities, municipalities and establishments affiliated to
municipalities, and other local government agencies.
80
Zero- Coupon (Discounted) Bonds: Fixed income instruments that are sold at a
discounted price on the date of issuance and, that pays interest only at maturity,
which is equivalent to the difference between the discounted price and the nominal
price.
81
APPENDIX 2: METHODOLOGY
ASSUMPTIONS AND EXPLANATIONS REGARDING THE CALCULATION OF
DOMESTIC DEBT STOCK REEL INTEREST RATES
•
The real interest rate of total domestic debt stock reflects the weighted average
real interest rate of each security in the total domestic debt stock, with its stock
amount (including currency differences) as weights.
•
Formula used in the computation of real interest rates is the nominal interest rates
discounted with the term inflation rate.
Term Real Interest Rate = [(1+Nominal Term Interest Rate)/(1+Term Inflation Rate)]1
The “Term inflation” reflects the inflation rate realized between the borrowing date
and today; and inflation expectations as mentioned below for the remaining period,
till the date the security matures.
•
In the computations, for inflation, Consumer Price Index (CPI) is used. For the
related variables as of the stock date, the annual inflation expectation figures for the
next twelve months announced by the Central Bank of Turkey’s “Inflation
Expectation Questionnaire” are taken into consideration. The distribution of annual
rate is done according to the previous year’s distribution.
•
The formula used for FX indexed and FX denominated securities is as follows:
Term Real Interest Rate = [(1+FX Denom. Nominal Interest Rate)*(1+Term Exchange
Rate Change)/(1+Term Inflation Rate)]-1
•
It was assumed that the changes in the foreign exchange rates will be in line with
the changes in inflation rate from the end of realization period till the security
matures.
•
It was assumed that the Euro / USD parity will remain constant at its value as of
the stock date.
82
•
For FX Denominated and FX indexed securities with coupon payments, the
exchange rates used in the beginning of the period are the selling rate which is
announced by Central Bank of Turkey. The exchange rates related to the end of the
coupon period are determined according to the set of exchange rates established in
line with the assumptions and explanations mentioned above.
•
In computations for all securities, the nominal term interest rate is taken as the
coupon rate for the existing coupon period as of the stock date.
•
In the computation of real interest rates for floating rate notes (FRN),
premium/discount amounts for the securities for the first issues, and the difference
between the price accepted at the auction and the price including accrued interest for
the re-issued securities per coupon are added to the return of the coupon. For the
current coupons, the real interest rate determined for related period is used. For the
rest of the announced coupons, the real interest rate is computed in line with the
inflation expectation for the beginning of the current coupon period.
•
For the swap securities with a maturity of 3 and 5 years, the IRR for the related
cash flows which consists of the principal and coupons reflecting the last realized
coupon rate of LIBOR + 2.25 and the currency difference has been calculated. As in
FRN’s discounted amounts for the selling prices of securities are added to the return
of the coupon.
•
In all computations, one month is taken as 30 days. However, February 2004 is 29
days, whereas the others are 28 days.
83
METHODOLOGY OF THE PUBLIC NET DEBT STOCK CALCULATION
The methodology used to calculate the net debt of the public sector, which is
assessed in Turkish Lira, consists of four basic parts: the "Public Sector Gross Debt
Stock"; the "Central Bank Net Assets", "Public Sector Deposits" and “Unemployment
Insurance Fund Net Assets”.
Total Public Sector Gross Debt (TPSGD): This item is obtained by adding
gross domestic and external debt stock figures of consolidated budget announced by
the Treasury on monthly bases to gross domestic and external debt stock figures of
SOE’s, local administrations and extra-budgetary funds provided on quarterly bases.
Central Bank Net Assets (CBRTNA): This item consists of the total of net
foreign assets and net value of other assets and liabilities of the Central Bank.
Public Sector Deposits (PSD): In addition to Treasury deposits, this item also
includes the total deposits of institutions and funds under consolidated budget,
SOE’s, local administrations and extra-budgetary funds.
Unemployment Insurance Fund Net Assets (UIFNA): It is composed of total
Unemployment Insurance Fund’s revenue that is netted out by its expenditures.
In this framework, “Public Sector Net Debt” is calculated by deducting
Central Bank net assets, public deposits and Unemployment Insurance Fund’s net
assets from total public sector gross debt stock.
PSNDS=TPSGD-CBRTNA-PSD-UIFNA
84
EXPLANATIONS AND METHODOLOGY REGARDING BENCHMARK
BORROWING POLICIES AND COST-AT-RISK APPROACH
The basic objective in risk analysis-based public debt management is to
borrow at the minimum cost and at a prudent level of risk. This means developing
borrowing strategies that, on the one hand, conform to macro-economic policies and,
on the other, keep costs to a minimum. This brings a trade-off between exposure to
risks and the cost of borrowing. Giving priority to one of these objectives has a great
importance on constructing the borrowing policy (defining the structure of
borrowing instruments, maturity structure etc.).
The
benchmark
borrowing
strategy,
by
taking
into
account
the
macroeconomic parameters and market conditions, is an instrument used to manage
the effects of trade-off between exposure to risks and cost of borrowing mentioned
above on public debt management in an efficient way. In this context, benchmark
borrowing policies determines the basic variables in medium and long term
borrowing.
The strategic benchmarks provide the decision makers and the practitioners
with the means for coordination between macroeconomic policies and borrowing
policies, restriction to the extent possible of risk levels within determined risk
parameters, measurement of the performance of borrowing policy and risk control.
A method known as “Cost-at-Risk” (C@R) in literature has been adopted to
be able to develop the strategic benchmark policies. The concept of “cost” and “costat-risk” can be defined in different ways. The simplest definition for the cost of
borrowing is the interest paid on debts. On the other hand, it is possible to calculate
different costs for the same period by taking into consideration the interest cost in
accrual basis rather than the interest paid in cash. It is also possible to use the change
in the mark-to-market value of the debt stock as a measure of cost for a specific
period. The increase in the mark-to-market value of public debt as a measure of cost
is used by several countries’ public debt managers and this approach alleviates the
85
problems associated with the timing of costs. However, the change in the value of
debt as a result of market movements do not actually create a real cost for debt
offices who do not conduct frequent secondary market transactions such as buybacks, swaps etc.
In the framework of Turkey’s budgetary regulations, the change in the
principal value of FX-denominated bonds are not treated as interest expenditure. To
take this into account and to be able to assess the costs of FX-denominated debt more
accurately; the most appropriate measure of “cost of debt” was set as the interest costs
in accrual basis plus the changes in debt amortization (principal payments) due to exchange
rate movements for foreign currency denominated (or linked) debt.
In the context of Cost-at-Risk approach, with a time-series model, basic
macroeconomic variables related to debt management were simulated and then a
number of macroeconomic scenarios were produced by imposing stochastic shocks.
After that, a “cash-flow model” has been developed to be able to calculate the future
cash flows to be generated by borrowing instruments that have different maturity,
interest type (variable/fixed) and currency composition structures. Then, the random
macro scenarios created through the macroeconomic simulation model were
transferred to this cash flow module. Alternative borrowing strategies were created
and tested under these scenarios and their cost-risk performances were determined.
Finally, the expected costs and risks of alternative borrowing strategies are plotted to
efficient frontier and with regard to the cost and risk choice of the management, the
optimum benchmark borrowing strategy is determined.
86
EXPLANATIONS ABOUT “DURATION” AND METHOD
“Duration” is a measurement of a bond’s price fluctuations stemming from
interest rate changes. Even though there are different types of duration definitions, to
determine the sensitivity of the debt redemptions to the changes in interest rates debt
managements of the states calculate their debt stock’s “Macaulay Duration”
For any given security, “Macaulay Duration” is the weighted average maturity
which is calculated by weighted present value of the cash payments that will be done in
the future. The formula of Macaulay Duration is as follows:
n
∑ t * PV (Ct )
MD (Macaulay Duration) =
t =1
n
∑ PV (Ct )
t =1
n: number of periods
Ct: cash payment at period t
PV(Ct): Present Value of Ct payment
( PV(Ct) =
1
i: periodic interest rate )
(1 + i) t
Instruments Used for Borrowing and Duration
“Macaulay Duration” shows a security’s time needed to be affected from interest
rate changes. When the government makes a discounted bond issue, the interest rate
changes occurring after the issue date does not affect the government until the maturity
date. The interest rate changes affect the government only at the maturity date when the
renewal of debt has come. However, while the duration of discounted bonds is equal to
time to maturity, fixed-coupon bonds’ duration which are used for domestic and
external borrowing is calculated by the formula cited above. For example, a discounted
security’s duration is 6 month of which time to maturity is 6 month. However, average
maturity (duration) of a yearly 8 percent interest rate, 7 percent yield; 4-year bonds
duration is calculated as 3.6 years.
On the other hand, duration of the floating rate bonds is perceived as the interest
(coupon) period to the next coupon period and the formula above is not applied. For
87
example, for the Treasury’s government bonds which have quarterly coupon payments
and indexed to 3 month T-bill interest rate, duration is 3 months at the beginning of the
coupon period. If any changes occur in the market interest rates after the settlement of
coupon interest rate, those changes will be reflected to the value of the bond only 3
months later.
Debt Stock and Duration
The duration of debt stock shows the time-period needed to be affected from any
interest rate. Duration of debt stock is figured out by calculating the duration of each
bond in the stock and weightening by their shares in the stock. A debt stock with a
longer duration is affected in a longer time period from the interest rate changes and
when compared to a stock with a shorter duration has less sensitivity to the fluctuations
at interest rates. Also, a long duration debt stock means that the share of long term,
fixed-rate instruments is high within the stock. Borrowing with fixed rate and long term
instruments when the long-term interest rates are above the short-term rates, increases
the cost of borrowing. For that reason, some countries try to hold their duration of debt
stock in a given band. In this context, while the lower limit of the duration restrains the
volatility of debt redemptions, on the other hand the upper limit constraints borrowing
with higher costs.
When the duration is monitored periodically, despite it indicates how the debt’s
interest rate sensitivity level changes, it doesn’t explain the magnitude of this change
solely. For example, a decrease in the average duration of debt from 3 months to 2
months explains the interest rate sensitivity has increased but this 2 months duration
doesn’t clarify how much the debt payments will be affected against a one basis point
change increase in the interest rates.
88
APPENDIX 2: PUBLIC FINANCE DATA
1.
Table 50 : Public Sector Net Debt Stock
2.
Table 51: FX and Interest Rate Composition of Consolidated Budget Debt Stock
3.
Table 52: Holders of Consolidated Budget of Debt Stock
4.
Table 53: Domestic Debt Stock 1990-2004
5.
Table 54: Outstanding External Debt By Borrower
6.
Table 55: Outstanding External Debt By Lender
7.
Table 56: Outstandig Bond Stock
8.
Table 57: Exchange Rate Effect and Currency Composition of Outstanding
External Debt
9.
Table 58: Treasury Guaranteed External Debt Stock
10. Table 59: Payments Undertaken Due to Treasury Guarantees
11. Table 60: Projects That Has Been Guaranteed By the Treasury
12. Table 61: The Stock of Receivables as of the end of 2004
13. Table 62: Outstanding Overdue Receivables
14. Table 63: Collections in 1997- 2004
15. Table 64: 1990- 2003 Consolidated Budget Realizations
16. Table 65: 1990- 2003 Consolidated Budget Realizations
89
Table 50: Public Sector Net Debt Stock(*)
Trillion TL
‹
2001 Q3
2001
2002 Q1
2002 Q2
2002 Q3
2002
2003 Q1
2003 Q2
2003 Q3
2003
2004 Q1
2004 Q2
2004 Q3
72,170
84,694
128,312
155,049
160,586
163,660
191,411
208,898
216,357
233,416
231,565
234,096
251,389
251,494
265,252
272,512
86,183
103,112
148,863
180,290
190,595
196,319
223,744
244,399
257,617
275,481
273,824
276,362
297,696
299,740
317,949
329,270
A-Domestic Debt
54,152
53,672
93,070
108,597
125,458
123,519
129,906
144,084
154,798
167,555
180,094
183,960
201,319
210,453
215,881
224,509
51,536
50,851
90,332
105,769
122,157
120,298
126,831
140,290
149,870
162,558
175,270
178,712
194,387
203,708
209,119
217,571
2,616
2,821
2,738
2,828
3,300
3,221
3,075
3,794
4,928
4,997
4,824
5,248
6,932
6,746
6,762
6,937
32,031
49,440
55,792
71,694
65,138
72,799
93,838
100,315
102,819
107,927
93,730
92,402
96,378
89,287
102,068
104,762
B- External Debt
Central Government
‹
2001 Q2
l- Total Public Sector Debt Stock (Gross)
Rest of the Public Sector
‹
2001 Q1
Total Public Sector Net Debt (I-II-III-IV)
Central Government
‹
2000
27,204
41,895
47,128
61,282
55,779
64,559
83,633
90,259
92,880
97,683
85,420
84,515
88,548
82,016
94,374
97,236
Rest of the Public Sector
4,828
7,544
8,665
10,412
9,359
8,240
10,205
10,056
9,939
10,243
8,310
7,886
7,830
7,271
7,695
7,525
II- Central Bank Net Assets
11,004
13,651
15,688
18,556
22,854
23,682
21,534
22,848
25,375
25,549
24,029
23,049
24,733
24,321
27,423
28,739
Net Foreign Assets
7,598
10,068
3,353
417
-2,324
7,149
9,353
12,911
13,660
13,485
12,206
19,109
17,262
17,111
22,460
25,430
Other Asset and Obligations (Net)
3,406
3,582
12,335
18,139
25,178
16,533
12,181
9,937
11,715
12,064
11,823
3,941
7,471
7,210
4,963
3,309
15,802
III- Public Sector Deposits
2,647
4,107
3,797
5,073
4,973
6,203
7,371
8,522
10,931
10,699
11,587
11,537
12,645
14,015
14,183
Central Government
1,038
1,764
1,013
2,304
1,213
2,275
2,415
3,239
5,099
3,445
5,148
5,147
5,053
6,118
6,751
7,497
Rest of the Public Sector
1,609
2,343
2,784
2,769
3,760
3,929
4,956
5,284
5,832
7,254
6,439
6,390
7,591
7,897
7,433
8,306
362
660
1,065
1,613
2,182
2,773
3,428
4,130
4,954
5,818
6,644
7,679
8,929
9,909
11,091
12,217
IV-Unemployment Insurance Fund Net Assets
Memo
X
Net External Debt Stock
24,433
39,372
52,439
71,277
67,461
65,651
84,484
87,404
89,159
94,442
81,524
73,293
79,115
72,176
79,608
79,332
X
Net Domestic Debt Stock
47,737
45,323
75,873
83,772
93,125
98,009
106,926
121,494
127,198
138,974
150,041
160,803
172,274
179,319
185,643
193,180
(*) Provisional
90
Table 51: FX and Interest Rate Composition of Consolidated Budget Debt Stock (*)
Trillion TL
Million Dolar
2002
2003
2004
2002
2003
%
2004
2002
2003
2004
CONSOLİDATED BUDGET
TOTAL DEBT STOCK
242,707
282,894
316,216
148,490
202,671
235,613
100.0
100.0
Fixed
109,197
138,276
170,167
66,808
99,064
126,792
45.0
48.9
53.8
Floating
133,510
144,617
146,049
81,682
103,606
108,821
55.0
51.1
46.2
TL
101,694
151,790
185,020
62,217
108,745
137,859
41.9
53.7
100.0
58.5
Fixed
37,576
68,614
94,930
22,989
49,156
70,733
15.5
24.3
30.0
Floating
64,118
83,175
90,090
39,228
59,588
67,126
26.4
29.4
28.5
38.5
FX Denominated
121,241
113,227
121,754
74,176
81,118
90,719
50.0
40.0
Fixed
71,156
69,662
75,237
43,534
49,907
56,059
29.3
24.6
23.8
Floating
50,085
43,565
46,518
30,642
31,211
34,660
20.6
15.4
14.7
FX Indexed
Fixed
Floating
TOTAL DOMESTIC DEBT STOCK
19,772
17,877
9,441
12,097
12,807
7,035
8.1
6.3
3.0
466
0
0
285
0
0
0.2
0.0
0.0
19,307
17,877
9,441
11,812
12,807
7,035
8.0
6.3
3.0
100.0
149,870
194,387
224,483
91,691
139,262
167,262
100.0
100.0
Fixed
54,390
85,032
115,572
33,276
60,919
86,113
36.3
43.7
51.5
Floating
95,480
109,354
108,911
58,415
78,343
81,150
63.7
56.3
48.5
TL
101,694
151,790
185,020
62,217
108,745
137,859
67.9
78.1
82.4
Fixed
37,576
68,614
94,930
22,989
49,156
70,733
25.1
35.3
42.3
Floating
64,118
83,175
90,090
39,228
59,588
67,126
42.8
42.8
40.1
28,404
24,720
30,021
17,377
17,710
22,369
19.0
12.7
13.4
Fixed
16,348
16,418
20,642
10,002
11,762
15,380
10.9
8.4
9.2
Floating
12,055
8,302
9,380
7,375
5,948
6,989
8.0
4.3
4.2
FX Denominated
FX Indexed
Fixed
Floating
PUBLIC
TL
Fixed
Floating
FX Denominated
Fixed
Floating
FX Indexed
Fixed
Floating
MARKET
TL
Fixed
Floating
FX Denominated
Fixed
Floating
FX Indexed
Fixed
Floating
EXTERNAL DEBT STOCK
19,772
17,877
9,441
12,097
12,807
7,035
13.2
9.2
4.2
466
0
0
285
0
0
0.3
0.0
0.0
19,307
17,877
9,441
11,812
12,807
7,035
12.9
9.2
4.2
79,107
92,626
83,335
48,398
66,359
62,093
52.8
47.7
37.1
58,560
76,851
72,557
35,828
55,057
54,062
39.1
39.5
3,058
6,703
11,130
1,871
4,802
8,293
2.0
3.4
5.0
55,502
70,147
61,427
33,956
50,255
45,769
37.0
36.1
27.4
8,595
586
8,009
5,082
236
4,846
5,224
1,811
3,413
5,258
359
4,900
3,641
169
3,472
3,893
1,349
2,543
5.7
0.4
5.3
2.6
0.1
2.5
2.3
0.8
1.5
11,952
0
11,952
10,693
0
10,693
5,554
0
5,554
7,312
0
7,312
7,661
0
7,661
4,138
0
4,138
8.0
0.0
8.0
5.5
0.0
5.5
2.5
0.0
2.5
70,763
43,134
34,517
8,616
101,760
74,939
61,911
13,028
141,148
112,463
83,800
28,663
43,293
26,389
21,118
5,272
72,903
53,687
44,354
9,333
105,169
83,797
62,439
21,357
47.2
28.8
23.0
5.7
52.3
38.6
31.8
6.7
62.9
50.1
37.3
12.8
19,809
15,762
4,047
19,638
16,182
3,456
24,797
18,831
5,966
12,119
9,643
2,476
14,069
11,593
2,476
18,476
14,031
4,446
13.2
10.5
2.7
10.1
8.3
1.8
11.0
8.4
2.7
7,820
466
7,355
7,184
0
7,184
3,887
0
3,887
4,785
285
4,500
5,147
0
5,147
2,896
0
2,896
5.2
0.3
4.9
3.7
0.0
3.7
1.7
0.0
1.7
32.3
92,837
88,507
91,733
56,799
63,408
68,350
100.0
100.0
100.0
Fixed
54,808
53,244
54,595
33,532
38,145
40,679
59.0
60.2
59.5
Floating
38,030
35,263
37,138
23,267
25,263
27,671
41.0
39.8
40.5
USD
42.4
37,329
35,841
38,932
22,838
25,677
29,008
40.2
40.5
JPY
7,159
5,222
3,779
4,380
3,741
2,816
7.7
5.9
4.1
Euro
24,326
23,297
23,520
14,883
16,690
17,525
26.2
26.3
25.6
SDR
22,801
23,365
24,764
13,950
16,739
18,452
24.6
26.4
27.0
Other
1,221
782
737
747
560
549
1.3
0.9
0.8
1,634,501
1,395,835
1,342,100
USD/Euro Parity
$ FX
1.04220
1.25020
1.36110
USD/SDR Parity
1.35476
1.48058
1.54820
(End period buying rate)
(*) Provisional
91
Table 52: Holders of Consolidated Budget of Debt Stock (*)
Trillion TL
TOTAL DEBT
DOMESTIC DEBT
Market
Public
EXTERNAL DEBT
Loan
Multilateral Agencies
- IMF
- Other
Bilateral Lenders
Commercial Banks
Bond Issues
2001
2002
2003
2004
177,903
242,707
282,894
316,380
122,157
149,870
194,387
224,483
41,522
80,635
70,763
79,107
101,760
92,626
141,148
83,335
55,746
92,837
88,507
91,897
26,757
9,170
653
8,517
9,172
8,414
28,990
55,037
33,695
22,787
10,908
11,089
10,252
37,801
51,039
32,838
23,355
9,483
9,665
8,537
37,468
52,047
35,177
24,755
10,422
8,769
8,101
39,850
2001
2002
2003
2004
Million USD
TOTAL DEBT
123,581
148,490
202,670
235,736
DOMESTIC DEBT
Market
Public
84,857
91,691
139,262
167,262
28,843
56,014
43,293
48,398
72,903
66,359
105,169
62,093
EXTERNAL DEBT
Loan
Multilateral Agencies
- IMF
- Other
Bilateral Lenders
Commercial Banks
Bond Issues
38,724
56,799
63,408
68,473
18,587
6,370
454
5,916
6,372
5,845
20,138
33,672
20,615
13,941
6,674
6,784
6,272
23,127
36,565
23,525
16,732
6,793
6,924
6,116
26,843
38,781
26,211
18,445
7,766
6,534
6,036
29,692
2001
2002
2003
2004
% Share
TOTAL DEBT
100
100
100
100
DOMESTIC DEBT
Market
Public
68.7
61.7
68.7
71.0
23.3
45.3
29.2
32.6
36.0
32.7
44.6
26.3
EXTERNAL DEBT
Loan
Multilateral Agencies
- IMF
- Other
Bilateral Lenders
Commercial Banks
Bond Issues
31.3
38.3
31.3
29.0
15.0
5.2
0.4
4.8
5.2
4.7
16.3
22.7
13.9
9.4
4.5
4.6
4.2
15.6
18.0
11.6
8.3
3.4
3.4
3.0
13.2
16.5
11.1
7.8
3.3
2.8
2.6
12.6
2001
2002
2003
2004
% GNP
TOTAL DEBT
100.8
88.2
79.3
..
DOMESTIC DEBT
Market
Public
69.2
54.5
54.5
..
23.5
45.7
25.7
28.8
28.5
26.0
..
EXTERNAL DEBT
Loan
Multilateral Agencies
- IMF
- Other
Bilateral Lenders
Commercial Banks
Bond Issues
31.6
33.8
24.8
..
15.2
5.2
0.4
4.8
5.2
4.8
16.4
20.0
12.3
8.3
4.0
4.0
3.7
13.7
14.3
9.2
6.5
2.7
2.7
2.4
10.5
..
(*) Provisional
92
..
..
..
..
..
..
..
Table 53: Domestic Debt Stock 1990-2004 (*)
TOTAL DOMESTIC DEBT (Billion TL)
SECURITIZED DEBT
CASH
BONDS
BILLS
NON CASH
BONDS
BILLS
UNSECURITIZED DEBT
BY CENTRAL BANK LAW
CENTRAL BANK ADVANCES
TOTAL DOMESTIC DEBT / GNP (%)
1990
57,180
27,991
24,270
18,801
5,469
3,721
3,721
0
29,189
26,319
2,870
1991
97,648
51,663
42,155
23,896
18,258
9,508
9,508
0
45,985
32,396
13,589
1992
194,237
128,634
83,335
41,088
42,247
45,300
45,300
0
65,602
34,602
31,000
1993
357,347
254,993
137,389
72,901
64,488
117,604
117,604
0
102,354
31,933
70,421
1994
799,309
543,614
338,266
34,036
304,230
205,348
205,348
0
255,695
133,417
122,278
1995
1,361,007
1,143,067
733,254
220,955
512,299
409,814
290,814
119,000
217,940
25,940
192,000
1996
3,148,985
2,777,992
1,923,829
603,485
1,320,344
854,163
646,669
207,495
370,993
40
370,953
1997
6,283,425
5,945,802
4,642,884
2,267,893
2,374,991
1,302,918
1,302,918
0
337,623
0
337,623
1998
11,612,885
11,612,885
9,511,785
3,815,843
5,695,942
2,101,100
1,956,137
144,964
0
0
0
1999
22,920,145
22,920,145
20,197,511
16,960,758
3,236,754
2,722,634
2,722,634
0
0
0
0
14.4
15.4
17.6
17.9
20.6
17.3
21.0
21.4
21.7
29.3
(*) Provisional
93
2000
2001
2002
2003 (*)
36,420,620 122,157,260 149,869,691 194,386,700
36,420,620 122,157,260 149,869,691 194,386,700
29,422,612 57,879,907 89,270,971 130,483,974
27,373,224 40,226,736 52,251,115 105,841,900
2,049,388 17,653,172 37,019,856 24,642,074
6,998,008 64,277,352 60,598,720 63,902,726
6,989,713 61,901,190 60,598,720 63,131,726
8,295
2,376,162
0
771,000
0
0
0
0
0
0
0
0
0
0
0
0
29.0
69.2
54.5
54.5
2004 Aralık (*)
224,482,922
224,482,922
165,579,168
135,306,946
30,272,223
58,903,754
58,903,754
0
0
0
0
..
Table 54: Outstanding External Debt By Borrower (Million Dolar) (*)
TOTAL OUTSTANDING DEBT
SHORT TERM (1)
MEDIUM-LONG TERM
SHORT TERM(2)
GENERAL GOVERNMENT
CBRT
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004 Q1
2004 Q2
2004 Q3
52.292
53.534
58.571
70.484
68.683
75.810
79.356
84.216
96.417
103.025
118.802
113.895
130.353
145.805
145.211
148.061
153.160
9.500
9.117
12.660
18.473
11.187
15.500
17.072
17.691
20.774
22.921
28.301
16.403
16.424
23.013
24.005
26.109
29.316
42.792
44.417
45.911
52.011
57.496
60.310
62.284
66.525
75.643
80.104
90.501
97.492
113.929
122.792
121.206
121.952
123.844
9.500
9.117
12.660
18.473
11.187
15.500
17.072
17.691
20.774
22.921
28.301
16.403
16.424
23.013
24.005
26.109
29.316
0
0
0
0
0
0
0
54
0
0
1.000
0
0
0
0
0
0
855
557
572
667
828
993
984
889
905
686
653
752
1.655
2.860
2.883
2.902
3.014
CBRT LOANS
160
4
3
1
5
20
42
30
7
6
26
20
15
11
11
1
2
DRESDNER BANK SCHEME
695
553
569
666
823
973
942
859
898
680
627
732
1.640
2.849
2.872
2.901
3.012
DEPOSIT MONEY BANKS
5.373
5.216
7.157
11.127
4.684
6.659
8.419
8.503
11.159
13.172
16.900
7.997
6.344
9.692
10.017
11.119
12.677
OTHER SECTORS
3.272
3.344
4.931
6.679
5.675
7.848
7.669
8.245
8.710
9.063
9.748
7.654
8.425
10.461
11.105
12.088
13.625
MEDIUM-LONG TERM
PUBLIC SECTOR
GENERAL GOVERNMENT
CENTRAL GOVERNMENT
42.792
44.417
45.911
52.011
57.496
60.310
62.284
66.525
75.643
80.104
90.501
97.492
113.929
122.792
121.206
121.952
123.844
33.187
34.918
36.059
39.556
41.692
41.623
40.162
38.845
39.890
42.425
47.919
46.413
63.982
70.293
69.329
69.996
71.376
28.050
29.624
30.980
34.251
36.881
37.563
36.282
34.738
35.688
37.687
42.502
41.276
59.179
65.565
64.593
65.444
66.780
26.041
27.291
28.396
31.331
33.293
33.679
32.303
31.405
32.331
34.580
39.522
38.760
56.830
63.453
62.563
63.527
64.942
LOCAL ADMINISTRATIONS
911
1.181
1.627
2.005
2.615
2.711
2.752
2.401
2.569
2.453
2.380
1.936
1.676
1.534
1.472
1.404
1.347
EXTRA BUDGETARY FUNDS
1.095
1.142
934
883
939
1.149
1.211
921
774
646
594
557
646
549
530
486
466
3
10
22
33
35
24
16
11
14
8
6
23
26
29
28
27
25
OTHER PUBLIC SECTOR(2)
1.005
1.427
1.546
1.564
1.415
1.263
1.077
936
686
875
1.205
1.129
1.045
1.201
1.193
1.264
1.384
STATE OWNED ENTERPRISES
4.132
3.868
3.533
3.740
3.396
2.797
2.803
3.171
3.516
3.864
4.212
4.008
3.758
3.526
3.543
3.289
3.212
286
293
308
272
103
78
157
445
651
743
706
575
196
209
204
204
206
3.846
3.575
3.225
3.469
3.293
2.719
2.645
2.726
2.865
3.121
3.506
3.433
3.562
3.317
3.339
3.085
3.006
17.791
UNIVERSITIES
Financial SOEs
NonFinancial SOEs
7.479
6.650
6.150
6.618
8.941
11.170
11.389
10.868
12.073
10.312
13.429
23.591
20.340
21.504
20.006
18.756
CBRT Loans
1.224
937
379
336
633
773
669
601
392
396
3.705
13.643
8.068
7.272
6.145
5.024
3.935
Dresdner Bank Scheme
6.255
5.713
5.771
6.282
8.308
10.397
10.720
10.267
11.681
9.916
9.724
9.948
12.272
14.232
13.861
13.732
13.856
34.677
CBRT
PRIVATE SECTOR (3)
FINANCIAL
Banks
Non-Bank Financial Enterprises
NON-FINANCIAL
Total Outstanding Debt/GSMH
Short Term Outstanding External Debt/GSMH
Middle-Long Term Outstanding External Debt/GSMH
2.125
2.849
3.702
5.838
6.863
7.517
10.733
16.812
23.680
27.367
29.153
27.488
29.608
30.995
31.871
33.200
939
1.168
1.137
1.758
1.657
1.890
3.354
5.535
6.879
7.482
7.581
4.789
4.586
4.972
5.134
5.573
6.047
907
1.100
1.005
1.294
1.062
1.126
2.270
3.757
4.274
4.768
4.550
3.211
3.007
3.113
3.191
3.546
3.877
32
68
132
464
595
764
1.084
1.778
2.605
2.713
3.032
1.578
1.579
1.859
1.943
2.027
2.170
1.186
1.681
2.565
4.079
5.206
5.627
7.379
11.277
16.801
19.885
21.571
22.699
25.022
26.023
26.737
27.627
28.630
34,3
35,2
36,5
38,9
52,6
44,1
43,1
43,6
47,0
55,3
59,0
79,1
71,4
61,0
..
..
..
6,2
6,0
7,9
10,2
8,6
9,0
9,3
9,2
10,1
12,3
14,1
11,4
9,0
9,6
..
..
..
28,1
29,2
28,6
28,7
44,1
35,1
33,8
34,4
36,9
43,0
44,9
67,7
62,4
51,4
..
..
..
Source: UT, CBRT
(*) Provisional
(1) Source: CBRT.
(2) T.Development Bank, T.Eximbank
(3) Since Oct 01,2001, CBRT is responsible for monitoring private sector debt.
94
Table 55: Outstanding External Debt By Lender (Million Dolar) (*)
TOTAL OUTSTANDING DEBT
SHORT TERM(2)
MEDIUM-LONG TERM
SHORT TERM(2)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004 Q1
2004 Q2
2004 Q3
52.303
53.545
58.581
70.492
68.692
75.819
79.356
84.216
96.417
103.025
118.802
113.895
130.353
145.805
145.211
148.061
153.160
9.500
9.117
12.660
18.473
11.187
15.500
17.072
17.691
20.774
22.921
28.301
16.403
16.424
23.013
24.005
26.109
29.316
42.803
44.428
45.921
52.019
57.505
60.319
62.284
66.525
75.643
80.104
90.501
97.492
113.929
122.792
121.206
121.952
123.844
29.316
9.500
9.117
12.660
18.473
11.187
15.500
17.072
17.691
20.774
22.921
28.301
16.403
16.424
23.013
24.005
26.109
COMMERCIAL BANK CREDITS
5.469
4.668
6.808
10.054
3.374
5.503
6.493
8.160
9.935
11.540
17.306
7.775
5.187
8.260
8.730
9.531
11.330
PRIVATE LENDER CREDITS
4.031
4.449
5.852
8.419
7.813
9.997
10.579
9.531
10.839
11.381
10.995
8.628
11.237
14.753
15.275
16.578
17.986
MEDIUM-LONG TERM
42.803
44.428
45.921
52.019
57.505
60.319
62.284
66.525
75.643
80.104
90.501
97.492
113.929
122.792
121.206
121.952
123.844
OFFICIAL CREDITORS
19.769
20.568
19.502
18.957
20.178
20.150
18.559
17.078
17.724
16.979
20.172
30.643
40.151
42.926
41.510
40.982
41.110
GOVERNMENTAL ORGANIZATIONS
9.827
10.306
9.817
9.579
10.417
10.250
9.686
8.994
9.697
9.140
8.705
8.581
9.302
9.457
9.230
8.840
8.608
MULTILATERAL ORGANIZATIONS
9.942
10.262
9.685
9.378
9.761
9.900
8.873
8.084
8.028
7.839
11.467
22.062
30.849
33.469
32.280
32.143
32.502
23.034
23.861
26.419
33.062
37.327
40.169
43.725
49.447
57.919
63.125
70.329
66.849
73.779
79.866
79.696
80.970
82.734
19.814
19.757
19.278
22.047
25.381
27.370
30.644
35.717
43.885
46.388
48.194
45.511
49.932
52.288
52.483
53.072
54.492
0
0
0
0
0
0
14.730
18.384
22.147
24.490
27.362
27.504
28.505
28.768
29.070
29.895
30.830
2.580
PRIVATE CREDITORS
LOAN
COMMERCIAL BANKS
NONBANK FINANCIAL INSTITUTIONS
0
0
0
0
0
0
2.927
4.490
6.040
6.985
5.602
3.371
3.304
3.003
2.719
2.577
NON-MONETARY INSTITUTIONS
0
0
0
0
0
0
1.788
1.877
2.982
3.980
4.280
3.933
4.745
4.637
4.860
4.593
4.860
OFF-SHORE BANKS
0
0
0
0
0
0
468
688
1.010
990
1.203
731
1.099
1.638
1.963
2.266
2.357
PRIVATE INVESTMENT & DEVELOPMENT BANKS
0
0
OTHER
DRESDNER
NGTA
BOND ISSUE
Total Outstanding Debt/GSMH
Short Term Outstanding External Debt/GSMH
Middle-Long Term Outstanding External Debt/GSMH
6.255
0
0
0
0
0
4
3
17
18
15
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
5.713
5.771
6.282
8.308
10.397
10.720
10.267
11.681
9.916
9.724
9.948
12.272
14.232
13.861
13.732
13.856
12
11
10
8
9
9
8
8
8
8
8
8
8
9
9
9
9
3.220
4.104
7.141
11.015
11.946
12.799
13.081
13.730
14.034
16.738
22.135
21.338
23.846
27.578
27.213
27.898
28.242
34,3
35,2
36,5
38,9
52,6
44,1
43,1
43,6
47,0
55,3
59,0
79,1
71,4
61,0
..
..
..
6,2
6,0
7,9
10,2
8,6
9,0
9,3
9,2
10,1
12,3
14,1
11,4
9,0
9,6
..
..
..
28,1
29,2
28,6
28,7
44,1
35,1
33,8
34,4
36,9
43,0
44,9
67,7
62,4
51,4
..
..
..
Source: UT, CBTR
(*) Provisional
(1) Source: CBRT.
95
Table 56: Outstandig Bond Stock (Million Dolar) (*)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004 Q1
2004 Q2
2004 Q3
GRAND TOTAL
3.220
4.104
7.141
11.015
11.946
12.799
13.081
13.730
14.034
16.738
22.135
21.338
23.846
27.578
27.213
27.898
28.242
CENTRAL GOVERNMENT
2.145
2.869
5.275
9.016
10.035
11.245
11.896
12.657
13.251
15.906
20.903
20.138
23.127
26.843
26.483
27.168
27.509
2.145
2.869
3.660
5.102
4.947
6.311
7.110
8.708
9.458
10.763
12.137
12.047
12.601
13.348
11.815
11.782
12.646
GLOBAL BOND
0
0
0
0
0
0
0
0
1.258
4.838
5.579
8.206
12.101
13.549
14.281
14.265
SAMURAI BONDS
0
0
1.365
3.664
4.838
4.685
4.536
3.699
3.345
3.277
3.323
1.909
1.719
795
519
507
0
YANKEE BONDS
0
0
250
250
250
250
250
250
449
608
605
603
601
599
599
598
598
MUNICIPALITIES
EURO BONDS
5
117
635
648
730
612
471
0
0
0
0
0
0
0
0
0
0
SAMURAI BONDS
0
16
505
562
633
612
471
0
0
0
0
0
0
0
0
0
0
BULLDOG BONDS
5
63
93
87
97
0
0
0
0
0
0
0
0
0
0
0
0
YANKEE BONDS
0
38
38
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3
376
393
358
414
389
156
187
183
182
185
0
0
0
0
0
0
3
376
393
358
414
389
156
187
183
182
185
0
0
0
0
0
0
406
521
286
423
772
773
549
548
548
548
548
EURO BONDS
0
0
0
0
0
0
104
251
199
423
772
773
549
548
548
548
548
SAMURAI BONDS
0
0
0
0
0
0
302
270
87
0
0
0
0
0
0
0
0
PRIVATE SECTOR (3)
0
0
0
0
0
0
305
177
104
50
45
39
15
0
0
0
0
2,1
2,7
4,4
6,1
9,2
7,5
7,1
7,1
6,8
9,0
11,0
14,8
13,1
11,5
..
..
..
SOEs
EURO BONDS
OTHER PUBLIC SECTOR(2)
Total External Debt Bond Stock/GSMH
Source: UT
(*) Provisional
(1) T.Development Bank, T.Eximbank
(2) Since Oct 01,2001, CBRT is responsible for monitoring private sector debt.
96
Table 57: Exchange Rate Effect and Currency Composition of Outstanding External Debt (Million Dollar) (*)
97
SHORT TERM OUTSTANDING EXTERNAL DEBT
1996-1997
1997-1998
A
B
C
A
B
1999-2000
C
A
2000-2001
B
C
A
B
2001-2002
A
B
USD
9.967
9.967
0
10.900
10.900
0
12.412
12.412
0
15.282
15.282
0
19.319
19.319
0
10.424
10.424
DEM
5.416
4.703
-713
5.072
5.446
374
6.375
5.461
-914
4.650
4.265
-385
3.909
3.740
-169
414
1
1
0
1
1
0
2
2
0
1.381
1.267
-114
3.659
3.501
-158
4.961
EUR/ECU
C
1998-1999
C
A
B
2003-2004 Q3
2002-2003
C
A
B
C
A
0
9.954
9.954
0
13.372
13.372
B
C
490
76
0
0
0
0
0
0
5.870
909
5.815
6.975
1.160
8.908
8.778
-130
0
SDR
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CHF
235
219
-16
236
252
16
223
190
-33
158
153
-5
131
128
-3
100
120
20
136
152
16
181
179
-2
GBP
228
224
-4
231
234
3
207
200
-7
208
191
-17
255
249
-6
194
215
21
208
231
23
322
327
5
JPY
249
223
-26
338
381
43
512
576
64
541
490
-51
379
326
-53
232
254
22
281
313
32
193
186
-7
FRF
248
217
-31
226
243
17
249
213
-36
227
208
-19
200
191
-9
23
27
4
0
0
0
0
0
0
NLG
223
193
-30
195
209
14
289
248
-41
183
168
-15
191
183
-8
21
25
4
0
0
0
0
0
0
OTHER (USD)
505
505
0
492
492
0
505
505
0
291
291
0
258
258
0
34
34
0
30
30
0
37
37
0
17.072
16.252
-820
17.691
18.157
466
20.774
19.808
-966
22.921
22.316
-605
28.301
27.896
-405
16.403
17.459
1.056
16.424
17.655
1.231
23.013
22.880
-133
TOTAL
MIDDLE-LONG TERM OUTSTANDING EXTERNAL DEBT
1996-1997
A
B
1997-1998
C
A
B
1998-1999
C
A
B
1999-2000
C
A
2000-2001
B
C
A
B
2001-2002
C
A
B
2002-2003
C
A
B
2003-2004 Q3
C
A
B
C
USD
19.911
19.911
0
28.126
28.126
0
34.231
34.231
0
39.052
39.052
0
45.270
45.270
0
47.108
47.108
0
51.173
51.173
0
53.173
53.173
DEM
20.577
17.869
-2.709
23.607
25.327
1.720
27.549
23.611
-3.938
22.923
21.034
-1.889
19.238
18.399
-839
412
485
73
0
0
0
0
0
0
1.549
1.380
-169
1.355
1.471
116
1.478
1.262
-216
5.803
5.324
-479
11.173
10.688
-485
29.226
34.578
5.351
34.044
40.840
6.796
39.679
39.098
-581
EUR/ECU
0
SDR
672
632
-40
603
628
25
394
384
-10
899
854
-45
4.186
4.033
-153
14.106
15.228
1.122
22.018
24.062
2.045
24.012
23.824
-188
CHF
1.156
1.075
-81
1.004
1.068
64
982
840
-142
800
778
-22
652
637
-15
586
706
120
583
651
68
703
697
-6
GBP
646
634
-12
591
595
5
614
593
-20
598
548
-50
554
541
-13
515
571
56
525
580
55
332
339
7
JPY
10.980
9.830
-1.150
8.640
9.723
1.083
7.497
8.441
944
7.468
6.764
-703
7.068
6.091
-977
4.944
5.427
484
5.031
5.610
580
4.324
4.167
-158
FRF
1.129
988
-140
979
1.049
70
1.124
962
-162
954
876
-79
814
779
-35
0
0
0
0
0
0
0
0
0
678
586
-92
624
670
47
674
577
-97
531
487
-44
456
437
-19
0
0
0
0
0
0
0
0
0
4.986
4.570
-417
996
1.047
51
1.101
1.017
-84
1.076
1.028
-47
1.090
1.066
-24
596
627
31
557
576
20
569
567
-1
62.284
57.474
-4.810
66.525
69.705
3.180
75.643
71.919
-3.725
80.104
76.745
-3.359
90.501
87.941
-2.560
97.492
104.730
7.238
113.929
123.493
9.563
122.792
121.864
-927
NLG
OTHER (USD)
TOTAL
TOTAL
1996-1997
A
B
1997-1998
C
A
B
1998-1999
C
A
B
1999-2000
C
A
B
2000-2001
C
A
B
2001-2002
C
A
B
2002-2003
C
A
B
2003-2004 Q3
C
A
B
C
USD
29.878
29.878
0
39.026
39.026
0
46.643
46.643
0
54.334
54.334
0
64.589
64.589
0
57.532
57.532
0
61.127
61.127
0
66.545
66.545
0
DEM
25.993
22.571
-3.422
28.679
30.773
2.094
33.924
29.073
-4.852
27.573
25.300
-2.273
23.147
22.139
-1.008
826
975
149
0
0
0
0
0
0
EUR/ECU
1.550
1.381
-170
1.356
1.472
116
1.480
1.264
-216
7.184
6.591
-593
14.832
14.189
-643
34.187
40.447
6.260
39.859
47.815
7.956
48.587
47.876
-711
SDR
672
632
-40
603
628
25
394
384
-10
899
854
-45
4.186
4.033
-153
14.106
15.228
1.122
22.018
24.062
2.045
24.012
23.824
-188
CHF
1.391
1.294
-97
1.240
1.319
80
1.205
1.030
-175
958
931
-27
783
766
-18
686
826
140
719
803
84
884
876
-8
GBP
874
857
-16
822
829
8
821
794
-27
806
739
-67
809
790
-19
709
786
77
733
811
78
654
666
12
JPY
11.229
10.053
-1.176
8.978
10.104
1.126
8.009
9.018
1.008
8.009
7.255
-754
7.447
6.417
-1.030
5.176
5.682
506
5.312
5.924
612
4.517
4.353
-164
FRF
1.377
1.206
-171
1.205
1.292
87
1.373
1.175
-197
1.181
1.084
-98
1.014
970
-44
23
27
4
0
0
0
0
0
0
901
779
-122
819
879
61
963
824
-138
714
655
-58
647
620
-27
21
25
4
0
0
0
0
0
0
5.491
5.075
-417
1.488
1.539
51
1.606
1.522
-84
1.367
1.319
-47
1.348
1.324
-24
630
661
31
587
606
20
606
604
-1
79.356
73.726
-5.630
84.216
87.862
3.646
96.417
91.726
-4.691
103.025
99.061
-3.963
118.802
115.837
-2.965
113.895
122.189
8.294
130.353
141.148
10.794
145.805
144.744
-1.060
NLG
OTHER (USD)
TOTAL
A = US Dollar Equivalent of original currency composition by end of the relevant period
B = US Dollar Equivalent by end of following period's rates
C = (B-A) US Dollar, cross currency rate effect
(*) Provisional.
Source: UT, CBRT
98
Table 58: Treasury Guaranteed External Debt Stock (Million USD)(*)
99
BORROWER
1990
1991
1992
1993
1994
1995
1996
EXTRA BUDGETARY FUNDS TOTAL
PUBLIC PARTICIPITATION FUND
PRIVATIZATION ADMINISTRATION
T. DEFENSE INDUSTRY SUPPORT FUND
FINANCIAL SOEs TOTAL
T.C. ZİRAAT BANK
NON-FINANCIAL SOEs
ASIL STEEL INDUSTRY & TRADE INC.
BOTAŞ -T. PETROLIUM PIPELINE CORP.
ÇİTOSAN - T. CEMENT AND SOIL TRADE INC.
DIVRIGI HEKIMHAN MINING CORP.
EBK -MEAT AND FISH PRODUCTS CORP.
EREGLI IRON &STEEL WORKS INC.
ETİBANK
EÜAŞ-ELECTRICITY PRODUCTION INC.
ISDEMIR - ISKENDERUN IRON & STEEL WORKS
PETKIM - PETRO CHAMICAL INDUSTRY
PETLAS RUBBER IND. AND TRADE INC.
GENERAL DIRECTORATE OF PTT-MAIL TELGRAPH TELEPHONE
SEKA - T. PAPER PLANTS INC.
SİVAS DEÇOKO-SIVAS IRON AND STEEL WORKS
SÜMER HOLDİNG INC.
TAKSAN BENCH SETS INC.
TCDD T. STATE RAILWAYS
TDÇİ - T. IRON AND STEEL WORKS
TDİ - T. SHIPPING INC.
TEAS - T. ELECTRICITY INSTITUTION
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TURKISH TELECOM
TEMSAN T. ELECTRICITY AND MECHANICAL IND.
TESTAŞ - T. ELECTRONIC IND.
THY - TURKISH AIRLINES
TİGEM - GEN. DIR. OF AGRICULTURAL ENTERPRISES
TKI - T. COAL CORP.
TMO - SOIL PRODUCTS OFFICE
TPAO - T. PETROLLIUM COMP.
TUDEMSAS - T. RAILWAY MACHINARIES INDUSTRY
TUGSAS - T. FERTILIZER IND.
TÜMOSAN-T. MOTOR SAN. VE TİCARET A.Ş.
TUPRAS - TURKISH PETROLIUM RAFINERIES
T. SHIPBUILDING INDUSTRY
T. SUGAR COMP.
TURKISH FEED INDUSTRY INC.
DEVELOPMENT AND INVESTMENT BANKS TOTAL
T. EXIMBANK
T. DEVOLOPMENT BANK
SYB -INDUSTRIAL INVESTMENT BANK
TSKB - T.INDUSTRIAL DEVOLOPMENT BANK
PRIVATE NONFINANCIAL INSTITUTIONS TOTAL
ÇUKOBİRLİK ÇUKUROVA COTTON UNION
UNIVERSITIES TOTAL
ANADOLU UNIVERSITY
ÇUKUROVA UNIVERSITY
GAZİANTEP UNIVERSITY
ISTANBUL UNIVERSITY
KARADENİZ TECHNICAL UNIVERSITY
SELÇUK UNIVERSITY
LOCAL ADMINISTRATIONS TOTAL
ASAT - ANTALYA WATER & SEWEREGE ADMINISTRATION
ASKİ - ANKARA WATER & SEWEREGE ADMINISTRATION
BUSKI - BURSA WATER & SEWEREGE ADMINISTRATION
EGO-ELECTRICITY, GAS & OMNIBUS AUTHORITY OF ANKARA
ESHOT-ELECTRICITY, WATER, GAS & OMNIBUS AUTHORITY OF IZMIR
GASKI - GAZIANTEP WATER & SEWERAGE ADMINISTRATION
IGDAS-ISTANBUL GAS DISTRIBUTION COMPANY
ISKI - ISTANBUL WATER & SEWERAGE ADMINISTRATION
IZGAZ - IZMIT GAS DISTRIBUTION COMPANY
IZSU - IZMIR WATER & SEWERAGE ADMINISTRATION
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ANKARA GREATER CITY
MUNICIPALITY OF BURSA GREATER CITY
MUNICIPALITY OF GAZİANTEP GREATER CITY
MUNICIPALITY OF İSTANBUL GREATER CITY
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
MUNICIPALITY OF YOZGAT
MUNICIPALITY OF ALANYA
GRAND TOTAL
1,095
1,011
0
84
141
141
3,488
3
248
2
0
0
10
1
981
11
17
35
314
7
28
0
8
107
159
7
758
17
0
1
5
333
2
44
224
38
0
19
12
76
17
5
0
1,620
427
593
64
536
3
3
2
1
1
0
0
0
0
892
0
0
0
178
0
0
67
136
0
28
0
0
0
0
482
0
0
0
0
7,242
1,142
816
0
326
129
129
3,301
4
174
11
0
0
79
0
1,081
14
15
35
224
0
25
1
5
137
111
5
591
35
0
1
4
364
1
33
171
35
1
6
13
106
13
4
0
1,863
555
720
75
512
1
1
3
2
1
1
0
0
1
1,058
0
2
0
224
0
0
207
162
0
45
0
0
0
0
419
0
0
0
0
7,499
910
563
0
346
261
261
3,021
4
202
9
0
0
136
0
1,068
14
32
21
142
0
17
1
2
133
130
2
435
36
0
0
3
322
1
19
23
30
2
34
4
180
10
2
6
1,952
520
855
88
489
0
0
4
2
0
1
0
1
0
925
0
8
0
191
0
0
184
157
0
36
0
0
0
0
349
0
0
0
0
7,072
838
370
100
367
248
248
3,222
3
240
0
0
50
231
0
886
13
32
5
101
0
12
0
0
148
90
1
356
35
0
0
1
496
0
6
189
27
2
32
1
180
6
72
5
2,066
570
860
86
551
0
0
10
1
0
0
9
0
0
1,229
0
13
1
258
0
0
159
190
0
59
0
227
0
0
323
0
0
0
0
7,614
869
281
100
488
89
89
3,126
3
232
0
0
50
326
0
781
12
26
3
65
0
6
0
0
198
50
0
335
44
0
0
0
556
0
0
130
25
1
25
0
202
3
46
5
2,013
556
846
79
532
0
0
27
4
0
0
23
0
0
1,752
0
19
4
373
17
17
134
221
0
74
0
343
1
0
375
90
84
0
0
7,876
1,047
217
95
735
75
75
2,704
2
167
0
0
0
318
0
725
11
22
0
38
0
2
0
0
169
0
0
324
40
0
0
0
502
0
0
2
21
1
31
0
324
0
5
0
1,775
665
587
68
456
0
0
24
3
0
0
20
0
0
1,987
0
25
11
394
17
20
90
215
41
75
0
431
4
4
338
135
171
14
2
7,612
1,211
179
85
948
54
54
2,612
2
123
0
0.1
0
291
0
737
9
7
0
1
0
0
0
0
121
0
0
309
32
6
0
0
564
0
5
0
16
1
40
0
347
0
3
0
1,466
663
408
46
349
0
0
15
2
0
0
13
0
0
2,162
9
72
22
362
11
16
67
211
64
66
0
481
5
9
210
186
337
31
4
7,521
4.8
4.9
4.4
4.2
6.0
4.5
4.0
Total Stock/GNP (%)
100
Treasury Guaranteed External Debt Stock (Million USD) (Continueing)
BORROWER
EXTRA BUDGETARY FUNDS TOTAL
PUBLIC PARTICIPITATION FUND
PRIVATIZATION ADMINISTRATION
T. DEFENSE INDUSTRY SUPPORT FUND
FINANCIAL SOEs TOTAL
T.C. ZİRAAT BANK
NON-FINANCIAL SOEs
ASIL STEEL INDUSTRY & TRADE INC.
BOTAŞ -T. PETROLIUM PIPELINE CORP.
DIVRIGI HEKIMHAN MINING CORP.
EREGLI IRON &STEEL WORKS INC.
EÜAŞ-ELECTRICITY PRODUCTION INC.
ISDEMIR - ISKENDERUN IRON & STEEL WORKS
PETKIM - PETRO CHAMICAL INDUSTRY
TCDD T. STATE RAILWAYS
TEAS - T. ELECTRICITY INSTITUTION
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TURKISH TELECOM
THY - TURKISH AIRLINES
TKI - T. COAL CORP.
TMO - SOIL PRODUCTS OFFICE
TPAO - T. PETROLLIUM COMP.
TUDEMSAS - T. RAILWAY MACHINARIES INDUSTRY
TUGSAS - T. FERTILIZER IND.
TUPRAS - TURKISH PETROLIUM RAFINERIES
T. SUGAR COMP.
DEVELOPMENT AND INVESTMENT BANKS TOTAL
T. EXIMBANK
T. DEVOLOPMENT BANK
SYB -INDUSTRIAL INVESTMENT BANK
TSKB - T.INDUSTRIAL DEVOLOPMENT BANK
UNIVERSITIES TOTAL
ANADOLU UNIVERSITY
ISTANBUL UNIVERSITY
LOCAL ADMINISTRATIONS TOTAL
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ANKARA GREATER CITY
MUNICIPALITY OF BURSA GREATER CITY
MUNICIPALITY OF ESKİŞEHİR GREATER CITY
MUNICIPALITY OF GAZİANTEP GREATER CITY
MUNICIPALITY OF İSTANBUL GREATER CITY
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
MUNICIPALITY OF ADAPAZARI GREATER CITY
MUNICIPALITY OF ALANYA
MUNICIPALITY OF BAFRA
MUNICIPALITY OF BANDIRMA
MUNICIPALITY OF DALAMAN
MUNICIPALITY OF DİDİM
MUNICIPALITY OF FOCA
MUNICIPALITY OF İSKENDERUN
MUNICIPALITY OF MENEMEN
MUNICIPALITY OF MİLAS
MUNICIPALITY OF YOZGAT
ASAT - ANTALYA WATER & SEWEREGE ADMINISTRATION
ASKİ - ADANA WATER & SEWEREGE ADMINISTRATION
ASKİ - ANKARA WATER & SEWEREGE ADMINISTRATION
BUSKI - BURSA WATER & SEWEREGE ADMINISTRATION
EGO-ELECTRICITY, GAS & OMNIBUS AUTHORITY OF ANKARA
ESHOT-ELECTRICITY, WATER, GAS & OMNIBUS AUTHORITY OF IZMIR
GASKI - GAZIANTEP WATER & SEWERAGE ADMINISTRATION
IGDAS-ISTANBUL GAS DISTRIBUTION COMPANY
ISKI - ISTANBUL WATER & SEWERAGE ADMINISTRATION
IZGAZ - IZMIT GAS DISTRIBUTION COMPANY
IZSU - IZMIR WATER & SEWERAGE ADMINISTRATION
ISTANBUL OLIMPIC GAMES PREPERATION & ORGANIZING BOARD
MARIC-MARMARIS MUNICIPALITIES UNION
CESME AND ALACATI MUNICIPALITIES UNION
GRAND TOTAL
Total Stock/GNP (%)
101
1997
1998
1999
2000
2001
2002
921
107
75
739
38
38
774
39
65
670
24
24
646
0
55
591
7
7
594
0
45
549
0
0
557
0
35
522
0
0
646
0
25
621
0
0
2003 2004 Q3
549
0
15
534
0
0
466
0
10
456
0
0
2,680
1
125
1
230
707
6
4
115
12
294
44
623
18
150
11
0
38
298
2
938
384
350
27
177
8
1
6
2,311
47
466
6
0
6
187
322
302
35
3
0
0
0
11
0
15
0
0
24
26
0
103
38
321
5
21
47
191
89
47
0
0
0
6,896
2,834
1
128
1
208
751
5
2
136
8
283
46
768
17
150
8
0
34
288
1
590
318
163
20
90
3
1
2
2,467
79
328
27
0
4
170
377
169
97
2
23
0
12
29
0
25
4
0
21
49
0
146
63
297
0
111
37
199
109
38
0
50
0
6,691
3,097
0
161
1
159
620
2
0
152
4
253
42
1,113
15
282
4
0
17
270
0
528
373
57
12
85
0
0
0
2,328
127
244
35
0
1
176
364
112
74
1
36
17
33
42
0
17
6
0
14
69
5
131
72
217
0
141
20
158
72
27
44
76
1
6,606
3,462
0
496
1
117
748
0
0
121
0
216
39
1,263
12
173
0
0
20
257
0
486
392
31
5
59
0
0
0
2,233
300
172
63
0
0
186
302
94
38
0
18
29
32
34
0
26
3
0
10
71
9
117
72
174
0
139
9
121
54
16
66
78
1
6,775
3,352
0
607
1
85
704
0
0
85
0
183
35
1,283
10
83
0
0
25
249
0
413
339
17
3
53
0
0
0
1,805
241
130
109
0
0
148
223
79
30
0
8
27
20
25
0
31
2
0
7
76
18
83
66
140
0
34
0
95
38
10
94
68
2
6,126
3,480
0
552
0
65
1,150
0
0
67
0
152
36
1,201
7
0
0
0
26
224
0
579
432
19
47
81
0
0
0
1,546
173
92
91
26
0
123
166
81
36
0
3
22
11
29
4
23
0
0
5
89
31
72
65
130
0
25
0
78
32
7
85
43
4
6,251
3,192
0
330
0
44
1,320
0
0
41
0
131
36
1,028
5
0
0
0
10
188
0
694
412
14
75
194
0
0
0
1,355
152
71
70
77
0
108
131
81
35
0
0
17
9
21
6
15
0
5
2
80
35
61
76
112
0
15
0
55
28
2
67
19
4
5,790
2,794
0
171
0
24
1,231
0
0
33
0
146
34
900
2
0
0
0
5
189
0
876
301
9
73
492
0
0
0
1,178
130
52
54
119
0
95
97
72
26
0
0
13
4
16
6
11
0
10
0
76
52
49
76
90
0
10
0
36
20
0
51
7
5
5,313
3.6
3.3
3.5
3.4
4.3
3.4
2.4
..
Table 59: Payments Undertaken Due to Treasury Guarantees (Thousand USD)*
BORROWER
GUARANTEED EXTERNAL DEBT
BANKS
T. DEVOLOPMENT BANK
EXTRA BUDGETARY FUNDS
PUBLIC PARTICIPITATION FUND
T. DEFENSE INDUSTRY & SUPPORT FUND
PRIVATIZATION ADMINISTRATION
STATE OWNED ENTERPRISES(SOEs)
BOTAŞ - T. PETROLEUM PIPELINE CORP.
EBK - MEAT AND FISH PRODUCTS CORP.
EÜAŞ-ELECTRICITY PRODUCTION INC.
TCDD - TC STATE RAILWAYS
TDÇİ - T. IRON AND STEEL WORKS
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TESTAŞ - T. ELECTRONIC IND.
TMO - SOIL PRODUCTS OFFICE
TPAO - T.PETROLEUM CORPORATION
TÜGSAŞ - T. FERTILIZER IND.
T.SHIPPING INDUSTRY CORP.
ANNEXED BUDGET
ANADOLU UNIVERSITY
UNIVERSITY OF İSTANBUL (PRESIDENCY)
LOCAL ADMINISTRATIONS
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ADAPAZARI GREATER CITY
MUNICIPALITY OF ALANYA
MUNICIPALITY OF ANKARA GREATER CITY
ASAT - ANTALYA WATER AND SEWERAGE ADMINISTRATION
ASKİ- ANKARA WATER AND SEWEREGE ADMINISTRATION
MUNICIPALITY OF BAFRA
MUNICIPALITY OF BANDIRMA
MUNICIPALITY OF BURSA GREATER CITY
MUNICIPALITY OF DALAMAN
MUNICIPALITY OF DIDIM
EGO ELECTRICITY,GAS&OMNIBUS AUTH.OF ANKARA
ESHOT ELECTRICITY,GAS&OMNIBUS AUTH.OF IZMIR
MUNICIPALITY OF FOÇA
GASKİ - GAZİANTEP WATER AND SEWEREGE ADMINISTRATION
MUNICIPALITY OF GAZİANTEP GREATER CITY
İGDAŞ-İSTANBUL GAS DISTRUBITION COMPANY
MUNICIPALITY OF ISKENDERUN
İSKİ - İSTANBUL WATER & SEWEREGE ADMINISTARATION
MUNICIPALITY OF İSTANBUL GREATER CITY
İSTANBUL OLIMPIC GAMES PREPERATION & ORGANIZING BOARD
İZGAZ - İZMİT GAS DISTRIBUTION COMP.
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
İZSU-İZSU-İZMİR WATER AND SEWERAGE AUTHORITY
MARİÇ-UNION OF MARMARİS-İÇMELER-ARMUTLU MUNICIPALITY
MUNICIPALITY OF MENEMEN
MUNICIPALITY OF YOZGAT
GURANTEED DOMESTIC DEBT
EXTRA BUDGETARY FUNDS
PUBLIC PARTICIPITATION FUND
BOT PRODUCT SALE GUARANTIES
LOCAL ADMINISTRATIONS
MUNICIPALITY OF İZMİT GREATER CITY
GRAND TOTAL
1992-1996
1997
1998
2,203,233 1,031,494 1,182,882
60,409
0
157,175
60,409
0
157,175
282,676
101,606
89,581
254,422
101,606
89,581
0
0
0
28,254
0
0
550,920
40,454
189,069
0
0
0
52,645
0
0
0
0
0
134,180
35,024
31,643
138,389
2,406
2,577
0
0
0
20,442
0
0
183,903
0
154,849
0
0
0
15,681
3,024
0
5,680
0
0
13,120
3,622
3,132
2,933
764
720
10,187
2,858
2,412
1,296,108
885,812
743,925
0
0
4,876
0
682
2,502
243
1,195
1,171
370,314
566,371
184,911
0
0
0
10,575
9,666
9,526
0
0
559
0
0
0
0
0
0
0
0
0
0
0
0
203,206
86,114
85,197
9,569
6,532
4,357
0
0
0
10,477
4,266
17,729
64
1,766
3,000
259,302
15,537
16,680
0
0
811
156,145
43,533
45,613
207,372
20,684
26,112
0
0
0
1,256
1,117
12,145
15,311
56,734
107,772
8,733
51,163
200,490
42,712
15,717
14,094
0
0
0
0
0
0
829
4,735
6,380
2,401,029
711,255
62,000
2,401,029
711,255
62,000
2,401,029
711,255
62,000
0
0
0
0
0
0
0
0
0
4,604,262 1,742,749 1,244,882
Payments Undertaken by Treasury/GNP (%)
0.9
(*) Provisional
102
0.6
1999
939,785
43,732
43,732
69,222
69,222
0
0
307,659
0
0
76,215
31,835
2,693
29,445
0
165,250
2,221
0
0
1,611
645
966
517,561
6,606
38,299
1,090
101,642
0
9,966
2,051
156
0
474
2,765
68,134
0
0
9,499
2,227
13,995
9,461
42,439
34,644
0
31,337
80,685
40,974
12,301
1,372
1,469
5,975
51,400
51,400
51,400
140,415
140,415
140,415
1,131,600
0.6
2000
2001
862,002 1,101,322
0
0
0
0
13,384
13,127
13,384
0
0
13,127
0
0
410,418
497,209
18,571
111,646
0
0
177,132
183,334
49,689
45,714
2,629
265
56,997
55,242
0
0
105,400
101,008
0
0
0
0
0
0
156
0
156
0
0
0
438,044
590,986
16,509
89,652
36,934
8,754
893
0
84,741
53,098
7,039
8,762
9,854
11,961
20,071
11,419
1,209
5,217
0
18,104
5,495
12,655
14,075
11,483
38,772
36,116
0
0
0
0
12,205
111,361
983
304
4,745
9,341
7,676
6,599
25,933
33,686
0
0
0
2,660
15,236
17,627
101,537
98,047
12,157
14,467
10,304
3,655
5,852
20,719
2,002
1,838
3,822
3,461
17,700
0
17,700
0
17,700
0
248,229
206,421
248,229
206,421
248,229
206,421
1,127,931 1,307,743
0.6
0.9
2002
887,912
0
0
12,385
0
12,385
0
397,573
72,288
0
130,895
29,889
116
66,267
0
98,118
0
0
0
0
0
0
477,954
87,947
8,430
0
47,438
10,453
15,433
5,238
6,647
29,932
12,348
9,984
37,072
0
0
10,980
0
0
9,329
28,714
0
24,961
14,052
65,982
15,223
4,640
28,067
1,788
3,296
0
0
0
212,700
212,700
212,700
1,100,612
2003
477,654
0
0
11,652
0
11,652
0
115,352
0
0
26,681
34,335
0
54,336
0
0
0
0
0
0
0
0
350,650
25,909
9,495
0
25,647
9,755
20,210
2,540
6,339
40,398
4,347
9,404
40,700
0
170
10,481
0
0
9,619
0
0
31,741
11,212
41,122
17,279
4,844
25,758
0
3,680
0
0
0
194,007
194,007
194,007
671,661
2004
294,513
0
0
10,926
0
10,926
0
14,670
0
0
0
14,670
0
0
0
0
0
0
0
0
0
0
268,917
24,762
10,023
0
22,879
2,821
0
0
4,516
28,176
4,676
9,164
37,399
0
652
9,701
0
0
8,657
0
0
20,904
9,734
38,779
18,072
2,544
13,425
0
2,033
0
0
0
148,087
148,087
148,087
442,600
TOTAL
8,980,797
261,316
261,316
604,559
528,215
48,090
28,254
2,523,324
202,505
52,645
594,257
406,979
149,075
262,287
20,442
808,528
2,221
18,705
5,680
21,641
5,218
16,423
5,569,957
256,261
115,119
4,592
1,457,041
38,830
97,191
41,878
24,084
116,610
39,995
56,875
632,710
20,458
822
196,699
8,344
319,600
52,152
376,063
288,812
80,266
113,716
605,969
378,558
110,811
95,193
7,097
34,211
3,243,384
3,243,384
3,243,384
1,149,859
1,149,859
1,149,859
13,374,040
0.6
0.3
..
..
103
Table 60: Projects That Has Been Guaranteed By the Treasury (Investment Guarantees)
BUILD - OPERATE - TRANSFER (BOT) PROJECTS THAT HAS BEEN GUARANTEED BY THE TREASURY
No
Name of the Project
Installed Capacity Guarantee
(MW)
Issue Date
Type of the Guarantee
1
BİRECİK DAM AND HYDRO ELECTRIC POWER
PLANT PROJECT
672
11/18/1995
TETAŞ and Fund's payment obligations
2
ÇAMLICA HYDRO-ELECTRIC POWER PLANT
PROJECT
84
8/7/1996
TETAŞ's payment obligaitons
3
MARMARA EREĞLİSİ NATURAL GAS POWER
PLANT PROJECT - ENRON
478
9/6/1996
TETAŞ's, BOTAŞ's and Fund's payment
obligaitons
4
MARMARA EREĞLİSİ NATURAL GAS POWER
PLANT PROJECT - UNIMAR
478
11/15/1996
TETAŞ's, BOTAŞ's and Fund's payment
obligaitons
5
GÖNEN HYDRO-ELECTRIC POWER PLANT
PROJECT
11
3/14/1997
TETAŞ's payment obligaitons
6
ESENYURT NATURAL GAS POWER PLANT
PROJECT
180
4/2/1997
TETAŞ's, BOTAŞ's and Fund's payment
obligaitons
7
TOHMA-MEDİK HYDRO-ELECTRIC POWER
PLANT PROJECT
12.5
8/11/1997
TEDAŞ's payment obligaitons
8
SUÇATI HYDRO-ELECTRIC POWER PLANT
PROJECT
7
11/6/1997
TETAŞ's payment obligaitons
9
GEBZE DİLOVASI HYDRO-ELECTRIC POWER
PLANT PROJECT
253
9/4/1997
TETAŞ's payment obligaitons
10
FETHİYE HYDRO-ELECTRIC POWER PLANT
PROJECT
16.5
1/12/1998
TETAŞ's payment obligaitons
TOTAL INSTALLED CAPACITY
2,192
İZMİT WATER SUPPLY PROJECT
142 million m3 / year
12/19/1995
Municipalty's payment obligaitons with
respect to water sale price, Municipalty's
repayment obligation of the credits in case of
early termination.
11
BUILD - OPERATE (BO) PROJECTS THAT HAS BEEN GUARANTEED BY THE TREASURY
Name of the Project
Installed Capacity Guarantee
(MW)
Issue Date
Type of the Guarantee
1
İZMİR NATURAL GAS FIRED POWER PLANT
PROJECT (1520 MW)
1,520
10/8/1998
TETAŞ's payment obligaitons under ESA (*)
2
GEBZE NATURAL GAS FIRED POWER PLANT
PROJECT (1540 MW)
1,540
10/8/1998
TETAŞ's payment obligaitons under ESA (*)
3
ADAPAZARI NATURAL GAS FIRED POWER
PLANT PROJECT (770 MW)
770
10/8/1998
TETAŞ's payment obligaitons under ESA (*)
4
ANKARA NATURAL GAS FIRED POWER PLANT
PROJECT (700 MW)
700
11/6/1998
TETAŞ's payment obligaitons under ESA (*)
5
İSKENDERUN THERMIC (IMPORTED COAL)
POWER PLANT PROJECT (1100 MW)
1,100
1/8/1999
TETAŞ's payment obligaitons under ESA (*)
TRANSFER OF OPERATING RIGHTS (TOR) THAT HAS BEEN GUARANTEED BY THE TREASURY
1
Name of the Project
Installed Capacity Guarantee
(MW)
Issue Date
Type of the Guarantee
ÇAYIRHAN THERMIC POWER PLANT PROJECT
620
TETAŞ's payment obligaitons under ESA (*)
7/5/2000
(*) Energy Sales Agreement
104
Table 61: The Stock of Receivables as of the end of 2004 (Billion TL)*
PROJECTED
UNPAID TREASURY REVENUES FROM THE
EXISTING
RECEIVABLES
RECEIVABLES
BORROWER
PRINCIPAL
GRAND TOTAL
NONBANK FINANCIAL INSTITUTIONS
TURKISH CATASTROPHE INSURANCE POOL
BANKS
T. GARANTİ BANK
T. HALK BANK
T. DEVOLOPMENT BANK
T. VAKIFLAR BANKASI T.A.O.
T.EXIMBANK
T.C. ZİRAAT BANK
BAYINDIRBANK INC.
TSKB - TURKISH INDUSTRIAL DEVELOPMENT BANK
YAPI VE KREDİ BANK INC.
İLLER BANK
EXTRA BUDGETARY FUNDS
PUBLIC PARTICIPITATION FUND
SDIF-SAVINGS DEPOSIT INSURANCE FUND
PRIVATIZATION ADMINISTRATION
REGULATORY BODIES
ENERGY MARKET REGULATORY AUTHORITY
GENERAL BUDGET
TSE - TÜRK STANDARTLAR ENSTİTÜSÜ
STATE OWNED ENTERPRISES(SOEs)
BOTAŞ - T. PETROLEUM PIPELINE CORP.
SAE-STATE AIRPORT ENTERPRISE
EBK - MEAT AND FISH PRODUCTS CORP.
EREĞLİ IRON & STEEL WORKS CO.
EÜAŞ-ELECTRICITY PRODUCTION INC.
MTA-MINERAL RESEARCH AND EXPLORATION
TCDD - TC STATE RAILWAYS
TDÇİ - T. IRON AND STEEL WORKS
TDİ - T. SHIPPING INC.
TEDAŞ-T. ELECTRICITY DISTRUBITION INC.
TURKISH ELECTRICITY TRADE AND COMMITMENT INC.
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TKİ - T. HARD COAL CORP.
TMO - SOIL PRODUCTS OFFICE
TTK-T.HARD COAL CORP.
TÜGSAŞ - T. FERTILIZER IND.
T. SUGAR PRODUCTION INC
TİGEM - GENERAL DIREC.OF AGRICULTURAL ENTERPRISE
NON - PROFIT INSTITUTIONS
CARDIYOLOGY FOUNDATION - FLORENCE NIGHTINGALE HOSPITAL INC.
SSO-SOCIAL SECURITY ORGANIZATION
THE UNION OF CHAMBERS OF COMMERCE & EXCHANGES
TÜBİTAK - MARMARA RESEARCH INSTITUTE
TÜBİTAK - NATIONAL METROLOGY INSTITUTE
TURKISH PATENT INSTITUTE
TÜRKEY TECHNOLOGY DEVELOPMENT FOUNDATION
ANNEXED BUDGET
BAŞKENT UNIVERSITY
SÜLEYMAN DEMİREL UNIVERSITY
UNIVERSITY OF İSTANBUL (PRESIDENCY)
LOCAL ADMINISTRATIONS
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ADAPAZARI GREATER CITY
MUNICIPALITY OF ALANYA
MUNICIPALITY OF ANKARA GREATER CITY
MUNICIPALITY OF ANTALYA GREATER CITY
ASAT - ANTALYA WATER AND SEWERAGE ADMINISTRATION
ASKI - ADANA WATER AND SEWERAGE ADMINISTRATION
ASKİ - ANKARA WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF BAFRA
MUNICIPALITY OF BANDIRMA
MUNICIPALITY OF BURSA GREATER CITY
MUNICIPALITY OF DALAMAN
MUNICIPALITY OF DENIZLI
MUNICIPALITY OF DIDIM
DİYARBAKIR WATER AND SEWERAGE ADMINISTRATION
EGO ELECTRICITY, GAS & OMNIBUS AUTH.OF ANKARA
ERZURUM WATER AND SEWERAGE ADMINISTRATION
ESHOT ELECTRICITY, GAS & OMNIBUS AUTH. OF IZMIR
ESKİŞEHİR WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF FETHIYE
MUNICIPALITY OF FOÇA
GASKİ - GAZİANTEP WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF GAZIANTEP GREATER CITY
KAYSERİ WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF KONYA GREATER CITY
MUNICIPALITY OF MALATYA CITY
MARİÇ-UNION OF MARMARİS-İÇMELER-ARMUTLU MUNICIPALITY
MUNICIPALITY OF MENEMEN
MUNICIPALITY OF MERSİN GREATER CITY
MUNICIPALITY OF SAMSUN GREATER CITY
MUNICIPALITY OF TARSUS
MUNICIPALITY OF YOZGAT
İGDAŞ-İSTANBUL GAS DISTRUBITION COMPANY
MUNICIPALITY OF ISKENDERUN
İSKİ - İSTANBUL WATER & SEWERAGE ADMINISTARATION
İSTANBUL OLIMPIC GAMES PREPERATION & ORGANIZING BOARD
İZGAZ - İZMİT GAS DISTRIBUTION COMP.
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
İZSU-İZSU-İZMİR WATER AND SEWERAGE AUTHORITY
MUNICIPALITY OF ŞANLIURFA
NON - MONETARY INSTITUTIONS
BALIKESİR ORGANIZED INDRUSTRIAL ZONE
KÜTAHYA ORGANIZED INDUSTRIAL ZONE
ÇUKUROVA ELECTRICITY ınc.
(*) As of 12/31/2004 provisional
105
31.395.006
0
0
0
0
0
0
0
0
0
0
0
0
0
20.223.657
1.675.433
18.483.371
64.853
0
0
0
0
595.865
0
0
0
0
0
0
570.305
25.560
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18.614
1.611
0
17.003
10.519.106
821.806
299.788
30.441
288.080
0
0
0
105.581
157.739
0
0
142.660
0
218.701
0
815.407
0
0
0
0
234
870.510
114.436
0
0
0
564.434
42.892
0
0
0
87.059
0
138.463
0
0
326.396
1.118.621
4.375.858
0
0
37.764
0
0
37.764
34.571.797
52.133
52.133
1.347.084
4.046
251.351
527
152.963
269.756
3.626
2.340
639.275
6.562
16.638
25.522.128
0
25.522.128
0
427
427
48.001
48.001
4.666.803
337.943
12.398
3.519
99.529
1.986.310
517
377.739
0
1.821
726
230
271.499
254
1.045.052
11.744
10.794
504.790
1.938
123.167
7.274
56.381
1.225
8.733
12.788
4.225
32.541
57.481
35.224
22.257
0
2.714.633
44.933
44.187
15.505
439.222
24.904
1.585
75.082
299.461
0
38.116
302.736
2.293
15.181
43.277
89.983
176.867
8.945
0
19.388
22.802
10.111
38.609
47.414
77.647
12.055
35.952
56.238
14.885
1.321
1.728
102.174
484
71.160
7.903
87.817
94.248
4.747
209.771
135.545
16.915
23.442
39.940
1.779
561
37.600
TOTAL
OTHER
1.417.707
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
176.163
0
0
0
0
152.766
0
0
0
0
0
0
0
0
10.649
12.748
0
0
0
0
0
0
0
0
0
0
0
19.042
9.271
9.771
0
1.221.374
0
0
0
1.027.152
14.758
0
0
55.913
0
0
3.867
0
0
0
0
26.284
0
1.711
0
0
0
0
4.297
0
1.936
0
0
0
0
0
0
0
0
0
0
0
0
52.470
0
32.986
0
1.128
1.128
0
0
67.384.510
52.133
52.133
1.347.084
4.046
251.351
527
152.963
269.756
3.626
2.340
639.275
6.562
16.638
45.745.785
1.675.433
44.005.499
64.853
427
427
48.001
48.001
5.438.831
337.943
12.398
3.519
99.529
2.139.076
517
948.044
25.560
1.821
726
230
271.499
254
1.055.701
24.492
10.794
504.790
1.938
123.167
7.274
56.381
1.225
8.733
12.788
4.225
32.541
95.137
46.106
32.028
17.003
14.455.113
866.739
343.975
45.946
1.754.454
39.662
1.585
75.082
460.955
157.739
38.116
306.603
144.953
15.181
261.978
89.983
1.018.558
8.945
1.711
19.388
22.802
10.345
909.119
166.147
77.647
13.991
35.952
620.672
57.777
1.321
1.728
102.174
87.543
71.160
146.366
87.817
94.248
331.143
1.380.862
4.511.403
49.901
23.442
78.832
2.907
561
75.364
Table 62: Outstanding Overdue Receivables (Billion TL)*
BORROWER
GRAND TOTAL
BANKS
İLLER BANK
T. HALK BANK
T. DEVOLOPMENT BANK
T.C. ZİRAAT BANK
EXTRA BUDGETARY FUNDS
PUBLIC PARTICIPITATION FUND
PRIVATIZATION ADMINISTRATION
SDIF-SAVINGS DEPOSIT INSURANCE FUND
STATE OWNED ENTERPRISES(SOEs)
EBK - MEAT AND FISH PRODUCTS CORP.
EÜAŞ-ELECTRICITY PRODUCTION INC.
SÜMER CARPET INC.
SÜMER HOLDING INC.
T. WOOL AND MOHAIR IND.CORP.
TCDD - TC STATE RAILWAYS
TDÇİ - T. IRON AND STEEL WORKS
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TESTAŞ - T. ELECTRONIC IND.
TİGEM - GENERAL DIREC.OF AGRICULTURAL ENTERPRISE
TKİ - T. HARD COAL CORP.
TMO - SOIL PRODUCTS OFFICE
TTK-T.HARD COAL CORP.
TÜGSAŞ - T. FERTILIZER IND.
T.SHIPPING INDUSTRY CORP.
NON - PROFIT INSTITUTIONS
CARDIYOLOGY FOUNDATION - FLORENCE NIGHTINGALE HOSPITAL INC.
SSO-SOCIAL SECURITY ORGANIZATION
THE UNION OF CHAMBERS OF COMMERCE & EXCHANGES
TURKISH PATENT INSTITUTE
ANNEXED BUDGET
ANADOLU UNIVERSITY
BAŞKENT UNIVERSITY
UNIVERSITY OF İSTANBUL (PRESIDENCY)
SÜLEYMAN DEMİREL UNIVERSITY
YÜKSEK İHTİSAS HOSPITAL
LOCAL ADMINISTRATIONS
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ADAPAZARI GREATER CITY
MUNICIPALITY OF ALANYA
MUNICIPALITY OF ANKARA GREATER CITY
MUNICIPALITY OF ANTALYA GREATER CITY
ASAT - ANTALYA WATER AND SEWERAGE ADMINISTRATION
ASKI - ADANA WATER AND SEWERAGE ADMINISTRATION
ASKİ - ANKARA WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF BAFRA
MUNICIPALITY OF BANDIRMA
MUNICIPALITY OF DALAMAN
MUNICIPALITY OF DENIZLI
MUNICIPALITY OF DIDIM
DİYARBAKIR WATER AND SEWERAGE ADMINISTRATION
EGO ELECTRICITY, GAS & OMNIBUS AUTH.OF ANKARA
ESHOT ELECTRICITY, GAS & OMNIBUS AUTH. OF IZMIR
ESKİŞEHİR WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF FOÇA
GASKİ - GAZİANTEP WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF GAZIANTEP GREATER CITY
İGDAŞ-İSTANBUL GAS DISTRUBITION COMPANY
MUNICIPALITY OF ISKENDERUN
İSKİ - İSTANBUL WATER & SEWERAGE ADMINISTARATION
MUNICIPALITY OF ISTANBUL GREATER CITY
İSTANBUL OLIMPIC GAMES PREPERATION & ORGANIZING BOARD
İZGAZ - İZMİT GAS DISTRIBUTION COMP.
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
İZSU-İZSU-İZMİR WATER AND SEWERAGE AUTHORITY
KAYSERİ WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF KONYA GREATER CITY
MARİÇ-UNION OF MARMARİS-İÇMELER-ARMUTLU MUNICIPALITY
MUNICIPALITY OF MENEMEN
MUNICIPALITY OF MERSİN GREATER CITY
MUNICIPALITY OF TARSUS
MUNICIPALITY OF YOZGAT
NON - MONETARY INSTITUTIONS
BALIKESİR ORGANIZED INDRUSTRIAL ZONE
BURSA MUSTAFAKEMALPAŞA ORGANIZED INDUSTRIAL ZONE
ÇUKUROVA ELECTRICITY ınc.
DIRECTORATE OF İÇEL-TARSUS ORGANIZED INDUSTRIAL ZONE
DIRECTORATE OF YOZGAT ORGANIZED INDUSTRIAL ZONE
1997
335,059
4,157
0
120
1
4,036
34,695
34,695
0
0
21,845
12,368
0
287
5,926
121
336
0
0
1,814
0
0
0
0
0
993
0
0
0
0
0
3,858
509
72
2,269
0
1,008
270,489
0
27
416
87,063
0
0
0
11,846
0
0
0
0
0
0
44,967
1,127
18
0
1,783
3,481
39,447
0
35,937
31,476
0
20
3,067
3,806
3,574
0
1,896
0
15
0
46
477
15
9
0
0
4
2
1998
865,334
6,315
784
260
1
5,270
55,103
55,103
0
0
28,986
18,506
0
569
8,098
170
0
0
0
0
130
0
116
0
0
1,397
0
0
0
0
0
13,897
1,124
6,165
4,629
0
1,979
760,704
10
452
1,613
349,898
2,840
0
0
25,402
0
0
0
0
0
0
102,904
4,277
2
0
6,509
9,390
67,442
0
73,603
5,982
0
2,467
36,098
51,799
12,966
48
3,361
0
67
0
190
3,384
329
213
4
0
112
0
1999
1,849,550
8,579
1,700
513
0
6,366
79,170
79,170
0
0
286,449
24,150
81,623
899
10,095
214
46,256
1,642
25,501
0
829
0
89,618
3,775
0
1,847
47
0
0
5
42
25,006
2,058
11,913
7,876
2
3,157
1,449,528
435
15,465
3,752
584,157
14,064
0
1
47,773
560
0
84
0
971
0
195,570
7,799
410
0
21,194
19,984
50,191
2,423
131,914
6,097
0
17,799
117,507
166,623
28,030
30
5,666
361
930
0
522
9,216
771
600
7
0
164
0
2000
2,407,197
12,727
4,595
803
0
7,329
103,645
103,645
0
0
51,558
28,096
2,461
259
11,491
245
966
4,907
0
0
0
0
0
0
856
2,277
100
0
0
32
68
25,124
2,946
7,291
10,321
671
3,895
2,212,660
4,914
53,009
6,563
786,569
34,870
425
0
73,113
7,489
56
2,248
14
6,306
265
285,476
9,929
1,620
0
44,430
35,886
199
11,211
151,531
6,185
0
44,370
220,198
344,743
47,405
101
8,059
4,057
3,874
0
944
16,601
1,383
1,051
30
0
273
29
2001
6,256,285
26,347
16,761
1,317
0
8,269
1,634,345
1,615,357
18,988
0
61,816
33,850
0
0
13,528
291
0
12,095
0
0
0
0
0
0
0
2,052
210
0
0
105
105
47,429
4,175
16,213
13,531
8,538
4,972
4,484,341
117,250
117,705
12,107
1,094,369
63,439
0
0
129,316
49,763
0
25,852
0
35,130
716
463,012
13,037
4,870
0
250,114
75,666
0
34,861
82,051
7,591
0
103,980
527,665
1,104,565
80,881
48
11,887
34,450
11,808
0
1,030
31,178
1,797
1,744
53
0
0
0
1.1
1.6
2.4
1.9
3.5
Memorandum:
Grand Total / GNP (%)
(*) As of 12/31/2004 provisional
106
2002
2003
2004
6,703,278 17,987,988 31,395,006
8,646
0
0
0
0
0
0
0
0
1
0
0
8,645
0
0
2,469,012 10,936,592 20,223,657
1,639,677 1,662,132 1,675,433
41,900
52,124
64,853
787,435 9,222,336 18,483,371
241,902
432,555
595,865
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
31,924
382,845
570,305
17,761
22,788
25,560
181,651
0
0
0
0
0
1
0
0
0
0
0
0
0
0
10,565
26,922
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
21,357
21,451
18,614
5,167
0
0
0
2,794
1,611
16,190
18,657
17,003
0
0
0
0
0
0
3,962,361 6,580,443 10,519,106
370,294
652,749
821,806
178,350
247,058
299,788
0
24,676
30,441
0
92,022
288,080
0
0
0
0
0
0
0
0
0
0
60,404
105,581
92,171
134,083
157,739
0
0
0
67,493
112,807
142,660
0
122
0
81,017
146,982
218,701
0
0
0
0
0
815,407
0
0
0
0
0
0
0
0
234
504,346
726,533
870,510
0
92,947
114,436
0
0
0
63,505
104,075
138,463
0
0
0
8,757
0
0
0
471
0
181,217
265,802
326,396
0
0 1,118,621
2,193,008 3,448,004 4,375,858
53
0
0
0
0
0
0
20
0
150,355
366,166
564,434
22,776
34,941
42,892
2
0
0
0
0
0
49,017
70,581
87,059
0
16,947
37,764
0
0
0
0
0
0
0
16,947
37,764
0
0
0
0
0
0
2.4
5.0
..
Table 63: Collections in 1997- 2004 (Billion TL) *
BORROWER
GRAND TOTAL
NONBANK FINANCIAL INSTITUTIONS
TURKISH CATASTROPHE INSURANCE POOL
BANKS
İLLER BANK
SYB - INDUSTRIAL INVESTMENT BANK
T. EMLAK BANK
T. GARANTİ BANK
T. HALK BANK
T.EXIMBANK
T. DEVOLOPMENT BANK
T. VAKIFLAR BANKASI T.A.O.
T.C. ZİRAAT BANK
TOPRAKBANK INC.
TSKB - TURKISH INDUSTRIAL DEVELOPMENT BANK
YAPI VE KREDİ BANK INC.
EXTRA BUDGETARY FUNDS
PUBLIC PARTICIPITATION FUND
SDIF-SAVING DEPOSIT INSURANCE FUND
PRIVATIZATION ADMINISTRATION
DÜZENLEYİCİ KURULUŞLAR
ENERGY MARKET REGULATORY AUTHORITY
GENERAL BUDGET
ELECTRICAL POWER RESOURCES SURVEY AND DEVELOPMENT ADMIN.
TSE - TURKISH STANDARTS INSTITUTION
STATE OWNED ENTERPRISES(SOEs)
ASİL STEEL INDUSTRY AND TRADE INC.
BOTAŞ - T. PETROLEUM PIPELINE CORP.
SAE-STATE AIRPORT ENTERPRISE
EBK - MEAT AND FISH PRODUCTS CORP.
EREĞLİ IRON & STEEL WORKS CO.
EÜAŞ-ELECTRICITY PRODUCTION INC.
MTA - MINERAL RESEARCH AND EXPLORATİON
SEKA - DIRECTORATE OF KASTOMONU
SÜMER CARPET INC.
SÜMER HOLDING INC.
T. WOOL AND MOHAIR IND.CORP.
TCDD - TC STATE RAILWAYS
TDÇİ - T. IRON AND STEEL WORKS
TDİ - T. SHIPPING INC.
TEDAŞ-T. ELECTRICITY DISTRUBITION INC.
TEİAŞ-T.ELECTRICITY TRANSMISSION INC.
TELEKOM - TURKISH TELECOM
TESTAŞ - T. ELECTRONIC IND.
TURKISH ELECTRICITY TRADE AND COMMITMENT INC.
THY - TURKISH AIRLINES
TİGEM - GENERAL DIREC.OF AGRICULTURAL ENTERPRISE
TKİ - T. HARD COAL CORP.
TMO - SOIL PRODUCTS OFFICE
TPAO - T.PETROLEUM CORPORATION
TTK-T.HARD COAL CORP.
TÜGSAŞ - T. FERTILIZER IND.
TÜPRAŞ - T. PETROLIUM RAFINERIES
T.SHIPPING INDUSTRY CORP.
T. SUGAR PRODUCTION INC
TZDK - TURKISH AGRICULTURAL EQUIPMENT INSTITUTION
NON - PROFIT INSTITUTIONS
CARDIYOLOGY FOUNDATION - FLORENCE NIGHTINGALE HOSPITAL INC.
SSO-SOCIAL SECURITY ORGANIZATION
THE UNION OF CHAMBERS OF COMMERCE & EXCHANGES
TÜBİTAK - MARMARA ARAŞTIRMA ENSTİTÜSÜ
TÜBİTAK - NATIONAL METROLOGY INSTITUTE
TURK PATENT INSTITUTE
TURKEY TECHNOLOGY DEVELOPMENT FOUNDATION
ANNEXED BUDGET
ANADOLU UNIVERSITY
BAŞKENT UNIVERSITY
BİLKENT UNIVERSITY
UNIVERSITY OF İSTANBUL (PRESIDENCY)
SÜLEYMAN DEMİREL UNIVERSITY
YÜKSEK İHTİSAS HOSPITAL
LOCAL ADMINISTRATIONS
MUNICIPALITY OF ADANA GREATER CITY
MUNICIPALITY OF ADAPAZARI GREATER CITY
MUNICIPALITY OF ALANYA
MUNICIPALITY OF ANKARA GREATER CITY
MUNICIPALITY OF ANTALYA GREATER CITY
ASAT - ANTALYA WATER AND SEWERAGE ADMINISTRATION
ASKI ADANA WATER AND SEWEREGE ADMINISTRATION
ASKİ- ANKARA WATER AND SEWEREGE ADMINISTRATION
MUNICIPALITY OF BAFRA
MUNICIPALITY OF BANDIRMA
MUNICIPALITY OF BATMAN
MUNICIPALITY OF BURSA GREATER CITY
MUNICIPALITY OF DALAMAN
MUNICIPALITY OF DENIZLI
MUNICIPALITY OF DIDIM
DİYARBAKIR WATER AND SEWEREGE ADMINISTRATION
EGO ELECTRICITY,GAS&OMNIBUS AUTH.OF ANKARA
ERZURUM WATER AND SEWERAGE ADMINISTRATION
ESHOT ELECTRICITY,GAS&OMNIBUS AUTH.OF IZMIR
ESKİŞEHİR WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF FETHIYE
MUNICIPALITY OF FOÇA
GASKİ - GAZİANTEP WATER AND SEWEREGE ADMINISTRATION
MUNICIPALITY OF GAZIANTEP GREATER CITY
MUNICIPALITY OF ISPARTA
İGDAŞ-İSTANBUL GAS DISTRUBITION COMPANY
MUNICIPALITY OF ISKENDERUN
İSKİ - İSTANBUL WATER & SEWEREGE ADMINISTARATION
MUNICIPALITY OF ISTANBUL GREATER CITY
İSTANBUL OLIMPIC GAMES PREPERATION & ORGANIZING BOARD
İZGAZ - İZMİT GAS DISTRIBUTION COMP.
MUNICIPALITY OF İZMİR GREATER CITY
MUNICIPALITY OF İZMİT GREATER CITY
İZSU-İZSU-İZMİR WATER AND SEWERAGE AUTHORITY
KAYSERİ WATER AND SEWERAGE ADMINISTRATION
MUNICIPALITY OF KONYA GREATER CITY
MUNICIPALITY OF MALATYA CITY
MARİÇ-UNION OF MARMARİS-İÇMELER-ARMUTLU MUNICIPALITY
MUNICIPALITY OF MENEMEN
MUNICIPALITY OF MERSİN GREATER CITY
MUNICIPALITY OF SAMSUN GREATER CITY
MUNICIPALITY OF ŞANLIURFA
MUNICIPALITY OF TARSUS
MUNICIPALITY OF YOZGAT
PARASAL OLMAYAN KURULUŞLAR
BALIKESİR ORGANIZED INDRUSTRIAL ZONE
BURSA MUSTAFAKEMALPAŞA ORGANIZED INDUSTRIAL ZONE
ÇUKUROVA ELECTRICITY INC.
DIRECTORATE OF İÇEL-TARSUS ORGANIZED INDUSTRIAL ZONE
KOÇ UNIVERSITY
KÜTAHYA ORGANIZED INDUSTRIAL ZONE
DIRECTORATE OF YOZGAT ORGANIZED INDUSTRIAL ZONE
1997
104,102
0
0
11,082
668
1,514
1,652
534
1,305
11
51
1,023
2,637
189
1,079
419
4,350
4,350
0
0
0
0
4
4
0
58,090
46
472
169
0
7,681
17,389
21
22
0
0
0
19,663
496
37
0
7,670
0
0
0
70
165
1,147
196
0
1,056
370
1,391
25
0
5
55
55
0
0
0
0
0
0
114
46
11
57
0
0
0
28,977
0
11
103
5,357
61
0
0
3,768
0
0
0
0
0
0
0
0
774
0
307
94
0
0
133
416
0
91
0
2,828
10,341
0
74
2,262
831
1,277
0
169
0
0
8
20
0
0
10
41
1,430
18
2
1,321
37
45
7
0
1998
265,463
0
0
33,331
908
5,086
2,492
944
1,252
19
9,274
3,632
2,952
463
5,038
1,272
4,350
4,350
0
0
0
0
6
6
0
141,236
75
852
319
0
11,951
30,199
34
36
0
0
0
27,172
1,064
59
0
12,162
0
1,814
0
113
201
1,891
49,054
0
1,811
151
2,267
0
0
12
126
126
0
0
0
0
0
0
332
39
180
113
0
0
0
79,549
402
171
233
17,019
469
0
0
3,443
0
0
0
281
0
0
0
0
45
0
0
294
0
0
18
804
16
36
0
2,311
43,988
0
42
6,372
2,120
548
122
668
0
0
6
94
0
0
16
32
6,533
21
23
6,135
92
169
73
21
0.4
0.5
Memorandum:
Grand Total / GNP (%)
(*) As of 12/31/2004 provisional
107
1999
2000
2001
2002
2003
2004
TOTAL
235,153 2,308,894 2,213,131 2,605,493 1,969,675 1,537,687 11,239,598
0
0
870
1,506
5,314
4,667
12,357
0
0
870
1,506
5,314
4,667
12,357
56,823
109,783
159,039
180,697
340,267
140,497 1,031,519
40,863
1,535
2,147
4,496
14,115
8,411
73,143
0
11,116
16,455
32,914
32,912
0
99,998
3,193
5,606
15,598
16,758
0
0
45,300
3,545
1,530
2,332
4,528
3,820
3,156
20,390
16,007
2,141
2,991
4,911
13,655
16,922
59,183
5,310
30
44
7,613
7,472
4,128
24,628
12,074
11,374
43,233
14,974
24,137
426
115,543
19,797
8,019
11,667
23,298
20,306
14,745
102,487
131,695
2,764
3,143
4,556
3,658
2,474
153,879
2,117
886
1,312
2,619
2,261
1,826
11,672
102,902
11,574
17,049
35,994
35,037
83,439
292,112
5,957
2,660
3,804
7,538
6,566
4,971
33,187
0
937,364
3,210 1,030,570
35,902
411,410 2,427,158
0
937,364
0
0
0
0
946,065
30,570
35,902
325,774
0
0
3,210
395,456
0
0
0 1,000,000
0
85,636 1,085,636
0
0
0
81
25
126
232
81
25
0
0
0
126
232
253
765
2,185
0
719
1,151
5,081
6
8
7
0
0
0
30
2,179
719
244
758
0
1,151
5,051
42,502 1,029,079 1,645,317
908,900 1,079,884
589,070 5,494,078
301
329
325
115
153
163
1,506
124,324
222,275
52,024
58,915
1,226
4,346
464,433
1,203
1,735
2,021
2,088
580
671
8,787
461
787
11,531
7,496
113
246
20,634
61,692
71,356
70,753
68,245
20,895
35,371
347,945
590,336
116,121
443,062
303,008 1,863,967
4,300
359,551
156
185
176
178
56
79
886
124
131
51
60
0
0
424
473
0
923
0
0
0
1,397
2,313
2,242
1,868
0
0
0
6,423
51
48
40
0
0
0
139
174,421
210
205
166
0
133,480
355,318
0
262
301
0
0
0
2,123
196
259
261
86
97
269
1,264
38
15
0
0
0
368
421
159,273
420,817
81,499
1,602
110,451
0
793,474
13
0
0
0
0
0
13
0
0
0
0
0
0
1,814
20
9
0
0
0
185
214
291
582
759
179
258
0
2,252
1,241
1,392
199
65
1,893
207
5,363
4,224
4,655
4,625
2,358
2,889
2,995
24,785
475,010
439,501
21,409
9,775 1,352,591
3,338
354,309
0
1,848
0
0
0
0
1,848
10,509
10,543
0
10,515
0
0
34,434
9,367
10,513
1,581
3,524
3,376
1,671
30,553
9,052
9,945
9,749
3,465
4,599
4,882
45,351
967
2,180
0
0
0
0
3,172
21,659
24,259
37,811
0
3,835
34,843
122,406
34
49
18
23
0
0
141
353
407
846
1,019
1,195
2,525
6,527
498
679
687
215
256
729
3,246
330
30
440
1,670
0
0
2,470
18
192
68
126
0
0
404
0
76
0
0
0
0
76
0
76
0
0
0
0
76
118
0
0
0
0
0
118
138
0
0
0
0
0
138
934
4,968
1,894
11,357
16,506
19,578
55,683
47
5,944
2
5
0
6,083
1,750
8,255
5,232
11,255
650
4,842
32,175
90
76
40
107
98
0
581
0
0
0
0
0
3,057
3,057
6
1,867
4,486
4,596
175
23
11,154
1,159
804
670
0
0
0
2,633
123,935
213,296
370,541
444,156
472,596
367,892 2,100,942
4,992
12,352
14,374
13,930
2,241
3,820
52,111
1,863
3,598
3,714
3,633
109
738
13,838
571
479
284
340
292
17
2,319
85,437
71,022
30,878
27,924
41,270
0
278,907
3,332
20,338
17,698
17,516
1,726
1,949
63,089
2,258
19,240
23,064
11,872
0
0
56,434
574
1,187
1,332
150
146
1,497
4,885
17,317
30,090
56,128
46,098
5,086
7,721
169,650
91
156
154
39
16
0
456
1,526
1,414
2,869
3,625
54
534
10,022
0
0
0
0
108
108
9,756
31,311
54,587
67,113
270
467
163,784
62
117
52
26
3
44
303
93
149
121
429
0
24
816
1,107
12
974
0
0
0
2,092
727
1,980
1,915
0
0
0
4,621
56
14,601
34,482
0
0
0
49,959
161
1,324
0
0
0
0
1,485
3,347
3,223
0
0
0
279
7,156
15
5,376
2,110
166
0
5,149
13,204
96
255
0
0
87
447
884
35
48
347
0
0
35
466
99
13,665
16,061
0
31
3,458
33,464
3,239
25,621
4,701
923
1,930
9,779
47,413
0
0
0
0
0
0
16
21,123
14,011
6,713
6,644
52,333
69,290
170,241
600
1,091
501
100
45
189
2,525
189,757
169,624
58,407
15,933
5,704
51,169
495,734
9,695
13,473
13,171
0
0
0
90,667
856
3,468
14,552
14,593
0
0
33,468
165
0
0
0
0
0
281
13,724
19,560
56,181
46,429
7,222
12,262
164,012
6,168
8,827
16,998
14,189
4,167
4,169
57,470
1,523
6,264
27,108
26,311
606
976
64,613
505
1,163
1,623
123
58
3,789
7,383
2,275
6,672
5,653
4,211
945
1,313
21,906
145
430
0
0
0
696
1,271
208
235
115
29
1,395
0
1,982
1
47
6
40
34
0
141
79
165
143
77
0
153
732
134
0
0
0
0
53
187
0
0
0
0
0
1,983
1,983
1,340
2,798
2,265
78
226
1,937
8,670
71
28
19
0
0
0
191
10,353
13,232
29,229
27,207
17,267
770
106,021
289
99
869
736
15
97
2,144
95
139
178
23
21
0
482
26,863
26,802
16,183
9,828
12,507
0
99,638
1,661
241
261
0
0
0
2,292
136
131
161
151
0
0
793
32
36
36
34
66
184
467
155
19
11
0
0
0
206
0.3
1.8
1.3
0.9
0.6
..
..
108
Table 64: 1990- 2003 Consolidated Budget Realizations (*)
(in billion TL)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Revenues (A+B)
A. General Budget Revenues (I+II+III)
I. Tax Revenues
Direct Taxes
Indirect Taxes
II. Non-Tax Revenues
III. Special Revenues and Funds
B. Annexed Budget Revenues
56.573
55.067
45.399
23.626
21.773
4.267
5.401
1.506
99.085
96.373
78.643
41.084
37.559
3.927
13.803
2.712
178.070
174.150
141.602
71.370
70.232
7.649
24.899
3.920
357.333
350.845
264.273
128.279
135.994
17.636
68.936
6.488
751.615
742.499
587.760
230.834
356.926
48.365
106.374
9.116
1.409.250
1.387.760
1.084.350
441.270
643.080
86.044
217.366
21.490
2.727.958
2.684.968
2.244.094
881.264
1.362.830
159.990
280.884
42.990
5.815.099
5.726.932
4.745.484
1.928.835
2.816.649
404.679
576.769
88.167
11.811.065
11.635.611
9.228.596
4.302.829
4.925.767
1.221.530
1.185.485
175.454
18.933.065
18.657.677
14.802.280
6.715.638
8.086.642
1.883.461
1.971.936
275.388
33.440.143
33.040.903
26.503.698
10.849.962
15.653.736
3.486.493
3.050.712
399.240
51.542.970
50.890.481
39.735.928
16.080.919
23.655.009
7.418.386
3.736.167
652.489
75.592.324
74.603.699
59.631.868
20.077.498
39.554.370
10.874.532
4.097.299
988.625
100.250.427
98.558.733
84.316.169
27.808.099
56.508.070
10.222.769
4.019.795
1.691.694
Expenditures
Primary Expenditures
Current
Personnel
Other Current
Investment
Transfer
Interest Payments
Domestic Debt
External Debt
Transfer to SEEs
Tax Rebates
Social Security Institutions
Emekli Sandigi
SSK
Bag-Kur
Unemployment Insurance Fund
Fund Payments
Other Transfers
68.355
54.389
33.452
26.465
6.987
9.882
25.021
13.966
9.613
4.353
1.267
4.349
1.225
1.225
0
0
0
0
4.214
132.401
108.330
60.536
49.291
11.245
19.038
52.827
24.071
16.940
7.131
8.033
7.521
1.599
1.599
0
0
0
0
11.603
225.398
185.100
114.443
94.076
20.367
32.691
78.264
40.298
30.545
9.753
12.473
12.303
4.000
4.000
0
0
0
0
9.190
490.438
373.968
205.448
169.511
35.937
57.565
227.425
116.470
92.518
23.952
23.280
21.251
11.000
11.000
0
0
0
16.100
39.324
902.454
604.170
347.262
273.062
74.200
77.016
478.176
298.284
233.167
65.117
22.748
31.147
34.480
20.000
14.480
0
0
49.130
42.387
1.724.194
1.148.078
645.945
502.601
143.344
102.989
975.260
576.116
475.520
100.596
50.732
63.620
108.205
41.000
59.205
8.000
0
64.886
111.701
3.961.308
2.463.907
1.286.240
974.148
312.092
255.356
2.419.712
1.497.401
1.329.087
168.314
75.194
104.900
335.300
119.200
146.000
70.100
0
168.480
238.437
8.050.252
5.772.335
2.788.298
2.073.140
715.158
640.134
4.621.820
2.277.917
1.977.967
299.950
303.821
249.499
760.000
300.000
337.000
123.000
0
387.341
643.242
15.614.441
9.437.846
5.187.840
3.871.005
1.316.835
999.320
9.427.281
6.176.595
5.629.514
547.081
189.960
539.253
1.400.000
514.000
451.000
435.000
0
428.563
692.910
28.084.685
17.363.845
9.172.790
6.911.927
2.260.863
1.544.427
17.367.468
10.720.840
9.824.622
896.218
593.242
1.159.991
2.750.000
1.035.000
1.105.000
610.000
0
985.797
1.157.598
46.705.028
26.265.166
13.613.937
9.978.784
3.635.153
2.475.116
30.615.975
20.439.862
18.791.862
1.648.000
1.134.108
1.632.049
3.321.098
1.775.000
400.000
1.050.685
95.413
1.995.073
2.093.785
80.579.065
39.516.839
20.448.022
15.211.894
5.236.128
4.149.580
55.981.463
41.062.226
37.494.301
3.567.925
1.620.231
2.918.206
5.112.000
2.625.000
730.000
1.437.000
320.000
1.480.497
3.788.303
115.682.350
63.811.691
31.107.959
23.089.184
8.018.775
6.891.836
77.682.555
51.870.659
46.807.038
5.063.621
2.195.000
5.665.750
11.205.000
4.822.000
3.180.000
2.943.000
260.000
234.000
6.512.146
140.454.842
81.845.679
38.513.866
30.209.473
8.304.393
7.179.667
94.761.309
58.609.163
52.718.886
5.890.277
1.921.000
8.335.922
15.922.000
6.145.000
4.505.000
4.922.000
350.000
280.000
9.693.224
Primary Balance
Budget Balance
2.184
-11.782
-9.245
-33.316
-7.030
-47.328
-16.635
-133.105
147.445
-150.839
261.172
-314.944
264.051
-1.233.350
42.764
-2.235.153
2.373.219
-3.803.376
1.569.220
-9.151.620
7.174.977
-13.264.885
12.026.131
-29.036.095
11.780.633
-40.090.026
18.404.748
-40.204.415
GDP
397.178
634.393
1.103.605
1.997.323
3.887.903
7.854.887
14.978.067
29.393.262
53.518.322
78.282.967
125.596.129
176.483.953
275.032.366
356.680.888
In 2004, analytical budget coding system was introduced by the Ministry of Finance (MoF). The MoF has been working on converting the previous years’ data to the new code system. Therefore, the data on the Tables 54 and 55 are consistent
with the old budget classification. The data on 2004 are consistent with the new classification and presented in the Report.
(*) Provisional
109
Table 65: 1990- 2003 Consolidated Budget Realizations (*)
(in percent of GDP)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Revenues (A+B)
A. General Budget Revenues (I+II+III)
I. Tax Revenues
Direct Taxes
Indirect Taxes
II. Non-Tax Revenues
III. Special Revenues and Funds
B. Annexed Budget Revenues
14,2
13,9
11,4
5,9
5,5
1,1
1,4
0,4
15,6
15,2
12,4
6,5
5,9
0,6
2,2
0,4
16,1
15,8
12,8
6,5
6,4
0,7
2,3
0,4
17,9
17,6
13,2
6,4
6,8
0,9
3,5
0,3
19,3
19,1
15,1
5,9
9,2
1,2
2,7
0,2
17,9
17,7
13,8
5,6
8,2
1,1
2,8
0,3
18,2
17,9
15,0
5,9
9,1
1,1
1,9
0,3
19,8
19,5
16,1
6,6
9,6
1,4
2,0
0,3
22,1
21,7
17,2
8,0
9,2
2,3
2,2
0,3
24,2
23,8
18,9
8,6
10,3
2,4
2,5
0,4
26,6
26,3
21,1
8,6
12,5
2,8
2,4
0,3
29,2
28,8
22,5
9,1
13,4
4,2
2,1
0,4
27,5
27,1
21,7
7,3
14,4
4,0
1,5
0,4
28,1
27,6
23,6
7,8
15,8
2,9
1,1
0,5
Expenditures
Primary Expenditures
Current
Personnel
Other Current
Investment
Transfer
Interest Payments
Domestic Debt
External Debt
Transfer to SEEs
Tax Rebates
Social Security Institutions
Emekli Sandigi
SSK
Bag-Kur
Unemployment Insurance Fund
Fund Payments
Other Transfers
17,2
13,7
8,4
6,7
1,8
2,5
6,3
3,5
2,4
1,1
0,3
1,1
0,3
0,3
0,0
0,0
0,0
0,0
1,1
20,9
17,1
9,5
7,8
1,8
3,0
8,3
3,8
2,7
1,1
1,3
1,2
0,3
0,3
0,0
0,0
0,0
0,0
1,8
20,4
16,8
10,4
8,5
1,8
3,0
7,1
3,7
2,8
0,9
1,1
1,1
0,4
0,4
0,0
0,0
0,0
0,0
0,8
24,6
18,7
10,3
8,5
1,8
2,9
11,4
5,8
4,6
1,2
1,2
1,1
0,6
0,6
0,0
0,0
0,0
0,8
2,0
23,2
15,5
8,9
7,0
1,9
2,0
12,3
7,7
6,0
1,7
0,6
0,8
0,9
0,5
0,4
0,0
0,0
1,3
1,1
22,0
14,6
8,2
6,4
1,8
1,3
12,4
7,3
6,1
1,3
0,6
0,8
1,4
0,5
0,8
0,1
0,0
0,8
1,4
26,4
16,5
8,6
6,5
2,1
1,7
16,2
10,0
8,9
1,1
0,5
0,7
2,2
0,8
1,0
0,5
0,0
1,1
1,6
27,4
19,6
9,5
7,1
2,4
2,2
15,7
7,7
6,7
1,0
1,0
0,8
2,6
1,0
1,1
0,4
0,0
1,3
2,2
29,2
17,6
9,7
7,2
2,5
1,9
17,6
11,5
10,5
1,0
0,4
1,0
2,6
1,0
0,8
0,8
0,0
0,8
1,3
35,9
22,2
11,7
8,8
2,9
2,0
22,2
13,7
12,6
1,1
0,8
1,5
3,5
1,3
1,4
0,8
0,0
1,3
1,5
37,2
20,9
10,8
7,9
2,9
2,0
24,4
16,3
15,0
1,3
0,9
1,3
2,6
1,4
0,3
0,8
0,1
1,6
1,7
45,7
22,4
11,6
8,6
3,0
2,4
31,7
23,3
21,2
2,0
0,9
1,7
2,9
1,5
0,4
0,8
0,2
0,8
2,1
42,1
23,2
11,3
8,4
2,9
2,5
28,2
18,9
17,0
1,8
0,8
2,1
4,1
1,8
1,2
1,1
0,1
0,1
2,4
39,4
22,9
10,8
8,5
2,3
2,0
26,6
16,4
14,8
1,7
0,5
2,3
4,5
1,7
1,3
1,4
0,1
0,1
2,7
Primary Balance
Budget Balance
0,5
-3,0
-1,5
-5,3
-0,6
-4,3
-0,8
-6,7
3,8
-3,9
3,3
-4,0
1,8
-8,2
0,1
-7,6
4,4
-7,1
2,0
-11,7
5,7
-10,6
6,8
-16,5
4,3
-14,6
5,2
-11,3
(*) Provisional
110