Turkey and Qatar are in the final stages of negotiations on a new $10 billion fund: 3 billion could come before the end of the year
A senior official told Reuters that the issue was “discussed during the leaders’ visit,” while another official said that a 2-3 billion dollar portion could be in the form of eurobonds before the end of the year.
Talks for Qatar to provide Turkey with a new inflow of funds that could reach 10 billion dollars have reached the final stage, with up to 3 billion dollars of the funds expected to arrive this year.
A senior official told Reuters that the issue was “discussed during the leaders’ visit,” while another official said that $2-3 billion could come in the form of eurobonds before the end of the year. Qatar and the Treasury and Finance Ministry declined to comment on the news, which was confirmed by three people.
The senior official said, “Negotiations on a new source of funding from Qatar to Turkey have reached the final stage. An amount of at least 8 billion dollars is envisaged. The total figure may vary between 8-10 billion dollars,” the senior official said:
“In the end, 2-3 billion dollars will be provided by the end of the year and the rest will be provided next year. There may be swaps or eurobonds here (some parts of the total funding). Several methods are being considered. Mutual agreement has been reached. This issue was also discussed during the visits of the leaders.”
“I can say that Qatar will further increase its investments in Turkey in the coming period”
Another official with knowledge on the subject pointed out that economic relations between Qatar and Turkey continue to increase and said, “The Treasury has $2 billion left in borrowing this year. In the first stage, the negotiations for Qatar’s participation in the issuance of 2-3 billion dollars in the bond market are progressing positively. Then it will continue in the first months of next year,” he said:
“I can say that Qatar will increase its investments in Turkey in the coming period, whether in swaps, Eurobonds, company partnerships or other issues that can be expanded in the process.”
The same source also said that methods are being used to increase participation in banks’ syndications.
The CBRT has swap agreements with China for $6 billion, with Qatar for $15 billion, with the United Arab Emirates for about $5 billion and with South Korea for $2 billion, totaling $28 billion.
According to bankers’ calculations, $23-24 billion of the swaps are already in reserves. Until today, there was no swap or deposit/deposit relationship with Saudi Arabia.
