The treasury launched a Y30,000 million ($285 million), six-year Eurobond issue on 13 May to complete a medium-term note (MTN) issue established in August 1995. The issue carries a coupon of 6 per cent, and is underwritten by Yamaichi.

The treasury has also mandated JP Morgan and UBS for a three-year Eurodollar issue valued at between $300 million-500 million, according to officials. However, they declined to reveal pricing.

The treasury's known external borrowing requirement for 1996 is about $2,500 million.

However, State Minister Ufuk Soylemez said in March that the government might need up to $5,000 million in 1996, mainly to help offset the pressure on the budget from domestic debt servicing. Turkey's weak credit rating may make more foreign borrowing too costly, however. On 15 May, Japan Credit Rating (JCR) said it had placed its BB+ rating for Turkey on credit monitor due to concerns about the government. Political developments could have an adverse effect on the economy, JCR said.