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INTRODUCTION
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THE WORLD AND
TURKEY IN 2014
THE BUDGET DEFICIT STOOD AT TL 11.3 BILLION
IN DECEMBER 2014
The central government budget deficit declined from TL
17.3 billion in December 2013 to TL 11.3 billion in the
same period of 2014. As a result, the central government
budget deficit, which was TL 18.4 billion in 2013, totaled
TL 22.7 billion in 2014. The central government budget
expenditures increased 9.8% over the previous year, while
budget revenues rose by 9.3%. The share of the central
government budget deficit in GDP, which was 1.2% in
2013, is expected to have risen to 1.4% in 2014 according
to the Medium Term Program (2015-2017); in 2015, this
ratio is expected to decline to 1.1%. Meanwhile, the
primary surplus in 2014 declined by 13.6% over the same
period of the previous year. An important factor in terms
of debt management, the primary surplus was TL 31.4
billion in 2013, which was above expectations, whereas it
amounted to TL 27.2 billion in 2014.
In the first eleven months of 2014, the central government
budget expenditures increased 11.2% over the previous
year, while the budget revenues rose 8.4%.
TL
612
BILLION
The Central Government
Gross Debt Stock
amounted to
TL 612 billion at end-
November 2014.
CENTRAL GOVERNMENT GROSS DEBT STOCK
The Central Government Gross Debt Stock stood at TL
612 billion at end-December 2014; of which, TL 414.6
billion was in the form of local currency debt and TL 197.3
billion in foreign currency denominated debt. Within the
framework of the Maastricht Criteria, also referred as the
“EU’s Financial Rule,” the debt stock to GDP ratio has been
declining steadily, particularly since 2009. This proves
the importance of progress in fiscal policies and public
administration in Turkey, which boasts an investment-
grade credit rating.
As per 2014 realizations, the average cost of fixed
income TL-denominated debt declined from 9.2% in
2013 to 8.8% while the average maturity of domestic
cash debt decreased to 68.5 months in 2014 from 74.3
months in 2013. In order to broaden the investor base
and diversify the funding base, Turkey continued to issue
lease certificates, which were issued for the first time
in 2012 and regularly issued in the domestic market
since 2013. As part of this effort, a 10-year, US$ 1 billion
lease certificate with a 4.49% lease rate was issued on
November 25.
In accordance with the 2015 borrowing strategy as
announced by the Treasury, total domestic debt of TL
88 billion is forecasted for 2015, which corresponds to a
rollover rate of 82%.