Babacan: "Turkey will not compromise its strong reserve policy"

Strong foreign currency reserves and extending the average terms of Treasury bills by issuing 10-year-plus bills will be pillars of Turkey's debt management in the years to come, depending on market conditions, said Economy Minister Ali Babacan yesterday. He made the remarks to Parliament's Planning and Budget Commission, testifying on the budget provisions of the Treasury, Banking Regulation and Supervision Agency (BDDK), Capital Markets Board (SPK) and Tobacco and Alcohol Market Regulatory Agency (TAPDK). He said Turkey's policy of borrowing depends on strategic criteria, which has played a vital role in the success of debt management so far, and will continue next year as well. Within this framework, the government will retain its policy of holding strong reserves to hedge liquidity risks that may stem from the management of cash flows and debts, Babacan said.