The treasury is arranging a $500 million syndicated loan and was to have released the term sheet in the week ending 24 February. Talks have been held with 18 participating banks. Allocations should be for around $30 million each.

The loan is likely to come as a three-year deal with an interest rate of around 350 basis points over the London interbank offered rate (Libor).

The deal could emerge with a fixed-rate portion and three floating rate tranches. The three tranches would mature at the end of each year of the loan.

The high pricing of the loan reflects the markets' reluctance to take emerging country debt following the collapse of the Mexican peso in December. Four-year Turkish debt is trading at up to 6 per cent over Libor.