Turkish Treasury posts $9.4 billion cash deficit for 2014

Treasury’s cash revenues were 413.23 billion Turkish lira ($178 billion), expenditures were 445 billion ($191.8 billion) last year.

Turkish Treasury posts $9.4 billion cash deficit for 2014
World Bulletin / News Desk
 
 The Turkish Treasury on Thursday has posted a cash balance deficit of 21.7 billion Turkish lira ($9.4 billion) for the previous year.

According to provisional cash balance figures, the Treasury’s cash revenues were 413.23 billion Turkish lira ($178 billion), while its expenditures, including interest payments were 445 billion lira ($191.8 billion).  

The cash deficit, or cash surplus is revenue minus expenses  minus net acquisition of nonfinancial assets. It differs in composition from the fiscal deficit which includes all revenue and expenses. The on-budget deficits require the Turkish Treasury to borrow money to raise cash needed to keep the county's government operating.

The Treasury borrows money by selling securities like treasury bills, notes, bonds and savings bonds to to investors. 

There was a high level of interest expense of 48.2 billion Turkish lira ($21 billion) that pushed up the deficit, the Treasury said. The Treasury also received 10 billion lira ($4.3 billion) from a privatization and funds income during the last year.

The central bank's key interest rate was around 8 percent in 2014. On January 28 of last year, the Central Bank more than doubled its borrowing rate from 3.5 percent to 8 percent, and raised the lending rate from 7.75 percent to 12 percent to maintain the Turkish lira's value against major currencies. 

In December, the Turkish Treasury also posted a cash balance deficit of 10.8 billion Turkish lira ($4.6 billion), 

The Treasury’s cash revenue was 34.9 billion Turkish lira ($15 billion) for the month, while its expenditures, including 1.5 billion Turkish lira ($646 million ) in interest payments, were 48.1 billion Turkish lira ($20.7 billion).

 Turkey’s Treasury plans to pay back 44.8 billion lira ($19.2 billion) of domestic debt, including 11.1 billion lira ($4.8 billion) of foreign debt, between January and March of 2015, the Treasury said on Dec.31 of last year.

Last Mod: 09 Ocak 2015, 13:50
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