Turkey's 5-year CDS fell below 285 basis points

Turkey’s 5-year credit risk premium (CDS) fell to 284.9 basis points, the lowest level since January 2. Turkey’s 5-year CDS saw 284.9 basis points, the lowest level since January 2. Treasury and Finance Minister Mehmet Şimşek made assessments about Turkey’s CDS data at an event titled “Turkey: Moving Forward in a Volatile Global Economy” held as part of the International Monetary Fund (IMF)-World Bank Spring Meetings on April 19. Şimşek said, “I think we have regained the confidence of international investors. This situation is also reflected in the significant decrease in the credit risk premium (CDS).” In its Meeting Summary published on May 3, the Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (PPK) noted that despite the weakening of global risk appetite, Turkey's 5-year credit risk premium had significantly departed from similar developing country CDS premiums following the March PPK decision and decreased to 310 basis points as of April 24, 2024. Analysts emphasized that with the ongoing decline in Turkey's CDS, international credit rating agencies had also increased Turkey's credit rating and made positive changes to its credit rating outlook, indicating investors' increasing confidence in the Turkish economy.