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Bloomberg
Turkey may sell as much as $8 billion in debt, according to a US
regulatory filing, a sign the government may be preparing to ramp up borrowing as it seeks to plug a widening budget deficit.
Turkey may offer the securities from “time to time in one or more offerings†and will use the
proceeds for general financing purposes, which may include the repayment of debt, according
to a prospectus on the US Securities and Exchange Commission’s website.
The government has increased spending to bolster growth and policy makers have said they may miss their 1.7 percent budget deficit target this year by as much as 1 percentage point. The government has already sold $6.25 billion of foreign currency debt in 2017, exceeding the full-year target. Meanwhile, analysts say domestic borrowing plans through July suggest lira debt sales will exceed redemptions this year for the first time since 2009. So far the fiscal slippage isn’t yet enough to spook the bond market, which has seen a surge in foreign demand after the central bank’s efforts to stem lira declines sparked a currency rally and drove yields above 11 percent, creating one of the world’s top carry-trade opportunities.