The treasury launched its first external commercial borrowing of 1996 on 19 January with a DM 500 million ($338 million) five-year Eurobond issue. A group of 20 institutions led by Conunerzbank are marketing the facility, expected to be signed in February. The bonds carry annual interest of 7.5 per cent.

This compares with 8 per cent for the treasury’s last three-year, DM Eurobond issue in July.

Turkey faces a total external debt servicing bill of around $10,500 million11,000 million in 1996, roughly the same as in the previous year. The treasury’s own fresh commercial borrowing requirement in 1996 will be around $2,500 million.

The treasury is also seeking to award a mandate for a five-year, Samurai bond issue, officials say. The amount will be around Y50,000 million ($476 million).