Turkey to issue debt securities to support state banks

Turkey will issue government debt securities worth €3.7 billion ($4.16 billion) on Wednesday to support its banking sector, the Treasury and Finance Ministry announced on Monday.

A total of €3.3 billion ($3.7 billion) of the securities will consist of five-year zero-coupon bonds -- with a 4.61% annual interest rate -- for state-run lenders.

The Treasury will also issue government debt securities in the amount of €400 million ($450 million) for state-run participation banks -- interest-free five-year bonds.

With this move, Turkey is working to strengthen state lenders' funds.

The action was announced in the country's economic reform package released on April 10.

Treasury and Finance Minister Berat Albayrak tweeted that Turkey is carrying out policies pledged in the reform package.

"We will continue to work determinedly to move our economy to the desired level," he wrote.