Clearstream to offer settlement and custody for Turkish public debt
Clearstream, via Turkiye Is Bankasi, will offer settlement and custody service for Turkish Government Bonds and Treasury Bills.
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From 3 April 2006, Clearstream customers will be able to settle domestic free of payment and versus payment transactions in all type of Turkish government bonds and T bills with counterparties of the Turkish CSD via Turkilye Is Bankasi, one of Turkey's leading banks.
Clearstream will be the first ICSD to offer services in Turkish public debt securities. It already offers settlement and custody services in Turkish equities.
Since the redomination of the Turkish Lira in January 2005, volumes in Lira-denominated Eurobonds and international interest in Turkish public debt instruments have grown significantly. The total amount of domestic debt and foreign debt for Turkey is €208 billion.
Speaking in Istanbul at the SWIFT Regional Conference on "Transforming for the Future" Jeffrey Tessler, Clearstream's CEO, said: "The addition of public debt securities demonstrates Clearstream’s continuing commitment to the Turkish market and its commitment to extending its market and product reach in line with the expanding horizons of international dealers and investors. We believe that our decision will bring significant additional international participation and liquidity to the Turkish debt markets which are proving highly attractive to international investors."
Clearstream's network reaches 41 domestic markets around the globe: 25 in Europe, 5 in the Americas, 10 in the Asia Pacific region and South Africa. It is the widest network of any international central securities depository (ICSD) and enables counterparties in local markets to efficiently settle eligible securities through Clearstream’s operational hub in Luxembourg.