Turkish debt capital market growing despite challenges: Fitch
ISTANBUL

The Turkish debt capital market (DCM) continues to grow despite political challenges and global macroeconomic volatility exacerbated by the U.S. tariffs increase, Fitch Ratings says.
The DCM is likely to cross $500 billion outstanding in 2025–2026, with modest growth in 2025 on funding deficits, projects, maturities, funding diversification goals and Islamic finance development, it said in a statement.
Total DCM issuances in April 2025 reached $12 billion, up 60 percent year-on-year and 43 percent quarter-on-quarter, driven mainly by sovereign issuances, with 76.5 percent in Turkish lira and the rest mostly in dollars, the rating company noted.
“In response to recent developments, non-resident investors' holdings of domestic sovereign debt fell to 8.6 percent at end-March 2025. This was down from 9.9 percent at end-2024, which was the highest level in the past four years,” it said.
The Turkish DCM reached around $465 billion outstanding at end-1Q25 (all currencies), up 9.8 percent year-on-year, denominated in lira (65.9 percent), then U.S. dollars (31.4 percent) and euros (2.7 percent), according to Fitch.
Sovereign financing will remain the primary driver, while banks and corporates have the potential to enhance their market presence, it said.