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Turkey Treasury May Pay FX-Linked Deposit Compensation via Bonds

TURKEY
  • Turkey’s Treasury & Finance Ministry may issue bonds to give to lenders for compensation of foreign-currency linked deposits that have been introduced late December, according to bill prepared by a group of ruling party lawmakers.
  • FX-protected deposits guarantee that returns on lira deposits would be protected from a possible lira depreciation, in an effort to end spot demand for FX.
  • Treasury and the central bank have promised to make up for the difference between the deposit rate and any lira weakening to deposit holders
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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