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25
VAKIFBANK ANNUAL REPORT 2013
the end of 2013, amounted to TL 31.5 billion.
This is an important factor in terms of debt
management.
Central Government Gross Debt Stock
The Central Government Gross Debt Stock
amounted to TL 585.7 billion by the end of
November 2013; of which, TL 403 billion was
local currency and TL 182.7 billion was foreign
currency denominated. Within the framework
of the Maastricht Criteria, also referred as the
“EU’s Financial Rule,” the debt stock to GDP
ratio has been decreasing steadily, especially
since 2009. While this ratio was 90.6% in the
Euro zone in 2012, in Turkey it was 36.2%,
far below the Maastricht Criteria of 60%. This
proves the importance of progress in fiscal
policies and public administration in Turkey, as
a country having an investment grade credit
rating.
As per 2013 realizations, the average cost of
fixed income TL-denominated debt declined
from 8.8% in 2012 to 7.5% while the average
maturity of domestic cash debt increased to
74.1 months in 2012 to 60.8 months. In order
to broaden the investor base, lease certificate
issues, which started for the first time in 2012,
continued in 2013 with TL 3.3 billion and US$
1.5 billion in the domestic and international
markets, respectively. In accordance with the
2014 borrowing strategy as announced by the
Treasury, the domestic debt rollover ratio is
expected to be 86% in 2014.
28.0
Domestic Debt Maturity
(months)
20
30
40
50
60
70
80
10
0
2012
2013
2011
2010
2009
2008
2007
2006
34.0
31.7
35.3
44.1
44.7
60.8
74.1
Source: Secretariat of Treasury
Central Government Budget Deficit / GDP
(%)
2007
2008
2009
2010
2011
2012
2013*
2014*
2015*
2016*
6
4
5
3
2
1
0
1.2
2.1
1.4
3.6
5.5
1.8
1.6
1.9
1.6
1.1
Source: Secretariat of Treasury
* Indicates the 2014-2016 Medium-term targets
EU Defined General Government Debt Stock
(% of GDP)
Source: Secretariat of Treasury
70
60
50
40
30
2005
2006
2007
2011
2010
2012
2009
2008
Maastricht Criteria (60%)
52.7
46.5
39.9
40
46.1
42.3
39.1
36.2