Bond Turkiye 8.6% ( USM88269US88 ) in USD

Turkiye

106.65 % ▲

Turkey

USM88269US88 ( in USD )

8.6% per year ( payment 2 times a year)

23/09/2027

Prospectus brochure of the bond Turkey USM88269US88 en USD 8.6%, maturity 23/09/2027

M88269US8

24/03/2026 ( In 137 days )

Turkey is a transcontinental Eurasian country spanning Western Asia and Southeastern Europe, with a rich history and diverse cultural heritage encompassing influences from various empires and civilizations.

The Bond issued by Turkiye ( Turkey ) , in USD, with the ISIN code USM88269US88, pays a coupon of 8.6% per year.
The coupons are paid 2 times per year and the Bond maturity is 23/09/2027

PROSPECTUS SUPPLEMENT
(To the Prospectus dated May 6, 2020)

TÜRKYE CUMHURYET
(The Republic of Turkey)
$2,000,000,000 8.600% Notes due September 24, 2027
________________
The Republic of Turkey (the "Republic" or "Turkey") is offering $2,000,000,000 principal amount
of its 8.600% Notes due September 24, 2027 (the "notes"). The notes will constitute direct, general and
unconditional obligations of the Republic. The full faith and credit of the Republic will be pledged for the
due and punctual payment of all principal and interest on the notes. The Republic will pay interest on the
notes on March 24 and September 24 of each year, commencing on September 24, 2022.
This prospectus supplement and accompanying prospectus dated May 6, 2020 constitute a
prospectus for the purposes of Article 6 of Regulation (EU) 2017/1129 (the "Prospectus Regulation").
This prospectus supplement and the accompanying prospectus have been approved by the
Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the "CSSF"), as
competent authority under the Prospectus Regulation. Application is being made to list on the Official List
and trade the notes on the Regulated Market "Bourse de Luxembourg" of the Luxembourg Stock Exchange,
which is a regulated market for the purposes of the Market in Financial Instruments Directive (2014/65/EU),
as amended ("MiFiD II"). The CSSF only approves this prospectus supplement and the accompanying
prospectus dated May 6, 2020 as meeting the standards of completeness, comprehensibility and consistency
imposed by the Prospectus Regulation. Such approval should not be considered as an endorsement of the
Republic or the quality of the notes that are the subject of this prospectus supplement and investors should
make their own assessment as to the suitability of investing in the notes. The CSSF assumes no
responsibility as to the economic and financial soundness of the transaction and the quality or solvency of
the Republic in line with the provisions of Article 6(4) of the Luxembourg Prospectus Law.
See the section entitled "Risk Factors" for a discussion of certain factors you should consider
before investing in the notes.
The notes will be designated collective action securities and will, therefore, contain "collective
action clauses". Under these provisions, which are described beginning on page 14 of the accompanying
prospectus dated May 6, 2020, the Republic may amend the payment provisions of the notes and other
"reserved matters" listed in the fiscal agency agreement with the consent of the holders of: (1) with respect
to a single series of notes, more than 75% of the aggregate principal amount of the outstanding notes of
such series; (2) with respect to two or more series of notes, if certain "uniformly applicable" requirements
are met, more than 75% of the aggregate principal amount of the outstanding notes of all series affected by
the proposed modification, taken in the aggregate; or (3) with respect to two or more series of notes, more
than 66% of the aggregate principal amount of the outstanding notes of all series affected by the proposed
modification, taken in the aggregate, and more than 50% of the aggregate principal amount of the
outstanding notes of each series affected by the proposed modification, taken individually. "Reserved
matters" include, among other things, changes in the dates on which any amounts are payable on the debt
securities, reductions in principal amounts or interest rates on the debt securities, a change in the currency
of the debt securities, any change in the identity of the obligor under the debt securities, or a change in the
status of the debt securities.

Per Note
Total
Public Offering Price .......................................................
99.892%
$1,997,840,000
Underwriting discount .....................................................
0.070%
$1,400,000
Proceeds, before expenses, to the Republic of Turkey ....
99.822%
$1,996,440,000
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Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these notes or determined that this prospectus supplement or the
accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal
offense.
The underwriters are offering the notes subject to various conditions. The underwriters delivered
the notes on or about March 24, 2022 (the "Issue Date"), through the book-entry facilities of The Depository
Trust Company ("DTC"), against payment in same-day funds.
Joint Book-Running Managers
CITIGROUP
GOLMAN SACHS
J.P. MORGAN
INTERNATIONAL

The date of this prospectus supplement is March 28, 2022.
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ABOUT THIS PROSPECTUS SUPPLEMENT
The Republic accepts responsibility for the information contained within this prospectus
supplement and accompanying prospectus. The Republic declares that to the best of their knowledge, the
information contained in this prospectus supplement and accompanying prospectus is in accordance with
the facts and makes no omission likely to affect its import.
Unless otherwise stated, all annual information, including budgetary information, is based upon
calendar years. Figures included in this prospectus supplement and the accompanying prospectus have been
subject to rounding adjustments; accordingly, figures shown for the same item of information may vary,
and figures that are totals may not be an arithmetical aggregate of their components.
This prospectus supplement and the accompanying prospectus have been prepared for the purpose
of giving information with regard to the Republic, which, according to the particular nature of the Republic
and the notes, is necessary to enable investors to make an informed assessment of the rights attaching to
the notes and the reasons for the issuance of notes and its impact on the Republic.
You should rely only on the information contained in this prospectus supplement and the
accompanying prospectus, including the documents incorporated by reference, in making your investment
decision. The Republic has not authorized anyone to provide you with any other information. If you receive
any unauthorized information, you must not rely on it.
The Republic is offering to sell the notes only in places where offers and sales are permitted.
You should not assume that the information contained in this prospectus supplement or the
accompanying prospectus is accurate as of any date other than its respective date.
FORWARD-LOOKING STATEMENTS
The Republic has made forward-looking statements in this prospectus supplement. Statements that
are not historical facts are forward-looking statements. These statements are based on the Republic's current
plans, estimates, assumptions and projections. Therefore, you should not place undue reliance on them.
Forward-looking statements speak only as of the date they are made. The Republic undertakes no obligation
to update any of them in light of new information or future events.
Forward-looking statements involve inherent risks. The Republic cautions you that a number of
factors could cause actual results to differ materially from those contained in any forward-looking
statements. These factors include, but are not limited to:
·
External factors, such as:
·
interest rates in financial markets outside Turkey;
·
the impact of changes in the credit ratings of Turkey;
·
the impact of changes in the international prices of commodities;
·
economic conditions in Turkey's major export markets;
·
the decisions of international financial institutions regarding the terms of their financial
arrangements with Turkey;
·
the impact of any delays or other adverse developments in Turkey's accession to the
European Union;
·
the impact of adverse developments in the region where Turkey is located; and
·
the effects of a regional or global health pandemic, including COVID-19, and the impact
of actions taken to mitigate such a pandemic.
·
Internal factors, such as:
·
general economic and business conditions in Turkey;
·
political, military or internal security events in Turkey;
·
present and future exchange rates of the Turkish currency;
·
foreign currency reserves;
·
the level of domestic debt;
·
domestic inflation;
·
natural events, such as climatic changes, earthquakes and floods;
·
the ability of Turkey to effect key economic reforms;
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·
the level of foreign direct and portfolio investment in Turkey; and
·
the level of Turkish domestic interest rates.
SOVEREIGN IMMUNITY AND ARBITRATION
The Republic is a foreign sovereign state. Consequently, it may be difficult for investors to obtain
or realize upon judgments of courts in the United States against the Republic. See "Debt Securities --
Governing Law and Consent to Service" in the accompanying prospectus.
UNSECURED OBLIGATIONS
The notes constitute unsecured obligations of the Republic.
CURRENCY AND EXCHANGE RATE DATA
References to "Turkish Lira" and "TL" in this prospectus supplement in the context of a point in
time after January 1, 2009 are to the Turkish Lira, the Republic's new official currency, which was
introduced on January 1, 2009 in place of the New Turkish Lira; references in this prospectus supplement
to "New Turkish Lira" and "YTL" are to the lawful currency of the Republic for the period beginning on
January 1, 2005 and ending on December 31, 2008; and references to "Turkish Lira" and "TL" in this
prospectus supplement in the context of a point in time prior to January 1, 2005 are to the Turkish Lira
before it was replaced with New Turkish Lira. References to "U.S.$", "$", "U.S. dollars" and "dollars" in
this prospectus supplement are to lawful money of the United States of America. References to "" and
"euro" in this prospectus supplement are to the lawful currency of the European Union.
Translations of amounts from Turkish Lira to dollars are solely for the convenience of the reader
and, unless otherwise stated, are made at the exchange rate prevailing at the time as of which such amounts
are specified. No representation is made that the Turkish Lira or dollar amounts referred to herein could
have been or could be converted into dollars or Turkish Lira, as the case may be, at any particular rate or at
all.
THE NOTES MAY NOT BE A SUITABLE INVESTMENT FOR ALL INVESTORS.
You must determine the suitability of investment in the notes in the light of your own
circumstances. In particular, you should:
(i) have sufficient knowledge and experience to make a meaningful evaluation of the notes and
the merits and risks of investing in the notes;
(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of
your particular financial situation, an investment in the notes and the impact the notes will have on your
overall investment portfolio;
(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the
notes, including where the currency for principal or interest payments is different from your currency;
(iv) understand thoroughly the terms of the notes and be familiar with the behaviour of any relevant
indices and financial markets; and
(v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect your investment and your ability to bear the
applicable risks.
LEGAL INVESTMENT CONSIDERATIONS MAY RESTRICT CERTAIN INVESTMENTS
The investment activities of certain investors are subject to legal investment laws and regulations,
or review or regulation by certain authorities. Prospective investors should consult their legal advisers to
determine whether and to what extent: (1) the notes are legal investments for such prospective investors;
(2) the notes can be used as collateral for various types of borrowing; and (3) other restrictions apply to
their purchase or pledge of any notes. Financial institutions should consult their legal advisors or the
appropriate regulators to determine the appropriate treatment of notes under any applicable risk based
capital or similar rules.
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TABLE OF CONTENTS

Page
Prospectus Supplement
Risk Factors .............................................................................................................................................. S-6
Overview ................................................................................................................................................ S-19
Recent Developments and Overview ..................................................................................................... S-23
Description of the Notes ......................................................................................................................... S-40
Global Clearance and Settlement ........................................................................................................... S-46
Taxation .................................................................................................................................................. S-50
Underwriting .......................................................................................................................................... S-56
Legal Matters .......................................................................................................................................... S-60
Table of References ................................................................................................................................ S-61

Prospectus
Where You Can Find More Information ...................................................................................................... 2
Data Dissemination ...................................................................................................................................... 3
Use of Proceeds ............................................................................................................................................ 3
Debt Securities ............................................................................................................................................. 3
Plan of Distribution .................................................................................................................................... 18
Debt Record ................................................................................................................................................ 19
Validity of the Securities ............................................................................................................................ 19
Official Statements ..................................................................................................................................... 20
Authorized Agent ....................................................................................................................................... 20

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RISK FACTORS
You should read this entire prospectus supplement and the accompanying prospectus carefully.
Words and expressions used in this section but not defined herein shall have the meanings assigned to them
elsewhere in this prospectus supplement. Investing in the notes involves certain risks. In addition, the
purchase of the notes may involve substantial risks and be suitable only for investors who have the
knowledge and experience in financial and business matters to enable them to evaluate the risks and merits
of an investment in the notes. You should make your own inquiries as you deem necessary without relying
on the Republic or any underwriter and should consult with your financial, tax, legal, accounting and other
advisers, prior to deciding whether to make an investment in the notes. You should consider, among other
things, the following:
Risks Relating to the Market for the Notes
The trading market for the notes may be volatile and may be adversely impacted by many events.
The market for the notes is expected to be influenced by economic, political, social and market
conditions and, to varying degrees, interest rates, currency exchange rates and inflation rates in the United
States and Europe and other countries. There can be no assurance that events in Turkey, the United States,
Europe or elsewhere will not cause market volatility or that such volatility will not adversely affect the
price of the notes or that economic, political, social and market conditions will not have any other adverse
effect.
There may be no active trading market for the notes and limited liquidity for noteholders.
There can be no assurance that an active trading market for the notes will develop, or, if one does
develop, that it will be maintained. If an active trading market for the notes does not develop or is not
maintained, the market or trading price and liquidity of the notes may be adversely affected. If the notes
are traded after their initial issuance, they may trade at a discount to their initial offering price, depending
upon prevailing interest rates, the market for similar securities, general economic conditions and the
financial condition of the Republic. Although an application will be made to list on the Official List and
trade the notes on the Regulated Market "Bourse de Luxembourg" of the Luxembourg Stock Exchange,
there is no assurance that such application will be accepted or that an active trading market will develop.
Risks Relating to the Notes
The notes may not be a suitable investment for all investors.
You must determine the suitability of investment in the notes in the light of your own
circumstances. In particular, you should:
(i) have sufficient knowledge and experience to make a meaningful evaluation of the information
contained in this prospectus supplement and of the notes and the merits and risks of investing in the notes;
(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of
your particular financial situation, an investment in the notes and the impact the notes will have on your
overall investment portfolio;
(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the
notes, including where the currency for principal or interest payments is different from your currency;
(iv) understand thoroughly the terms of the notes and be familiar with the behaviour of any relevant
indices and financial markets; and
(v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect your investment and your ability to bear the
applicable risks.
The notes are unsecured.
The notes constitute unsecured debt obligations of the Republic, and are not, either directly or
indirectly, an obligation of any third party. In the event the Republic were to default on its obligations, you
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may not receive any amounts owed to you, including any repayment of principal, under the terms of the
notes.
The notes contain provisions that permit the Republic to amend the payment terms without the
consent of all holders.
The notes contain provisions regarding acceleration and voting on amendments, modifications,
changes, consents and waivers, which are commonly referred to as "collective action clauses". Under these
provisions, certain key provisions of the notes may be amended, including the maturity date, interest rate
and other payment terms, with the consent of the holders of 75% of the aggregate principal amount of the
outstanding notes. The Republic expects that all series of notes issued under the program will include such
collective action clauses, thereby giving the Republic the ability to request modifications or actions in
respect of these matters across multiple series of notes. This means that a defined majority of the holders
of such series of notes (when taken in the aggregate only, in some circumstances, and/or individually)
would be able to bind all holders of notes in all the relevant aggregated series. See "Description of the Notes
-- Default"; "--Acceleration of Maturity" and "--Amendments and Waivers" in this prospectus supplement
and "Debt Securities -- Collective Action Securities Issued On or After January 1, 2015" in the
accompanying prospectus.
Risks Relating to the Republic
The novel coronavirus (COVID-19) has had an adverse effect on the Republic's economy.
The outbreak of COVID-19, and the measures implemented to contain its spread, have
significantly weakened global economic conditions and continue to have an indeterminable adverse impact
on the world economy, including increased volatility in financial markets. COVID-19 was reportedly first
detected in Wuhan, Hubei Province, China, and first reported to the World Health Organization ("WHO")
country office in China on December 31, 2019. On January 30, 2020, the WHO declared COVID-19 a
public health emergency of international concern and on March 11, 2020, declared the outbreak a pandemic.
As a result of the COVID-19 outbreak and the measures implemented to contain its spread, Turkey
and many other major economies reported economic contractions in the first and second quarters of 2020.
Although Turkey and some other economics have shown signs of recovery since the second half of 2020,
in recent months, some major countries, such as China, have reported a resurgence of COVID-19 and
significant increases in COVID-19 infections in certain regions. In response to the increase in infections,
some countries have re-introduced lockdown and other restrictive measures, which could have an impact
on global economic conditions. Accordingly, the magnitude and duration of the economic impact of
COVID-19 remains highly uncertain, and it is possible that another surge in COVID-19 cases could result
in a prolonged economic slowdown in Turkey and globally, which could differ significantly in terms of
severity and duration depending on the country.
To address the spread of COVID-19 in Turkey, the Turkish government has, since March 2020,
implemented a series of protective measures. See "Recent Developments and Overview -- General --
COVID-19". The measures implemented so far have resulted in a significant slowdown in economic activity
that adversely affected economic growth in 2020 and may affect the economic growth in the upcoming
periods to a degree that the Republic cannot quantify as of the date hereof. Any prolonged restrictive
measures put in place in order to control an outbreak of contagious disease or other adverse public health
development in Turkey may have a longer lasting material and adverse effect on Turkey's economy. In
order to accelerate the normalization in daily life and to enhance the level of openness of the economy, a
vaccination process is being carried out throughout the country. As of March 12, 2022, an estimated 85.22%
of the adult population has received two vaccines, which include vaccines purchased internationally and
the "Turkovac" vaccine, which has been developed within Turkey and has received authorization for
emergency use from the Turkish authorities. Any failure to fully vaccinate the population, or emergence of
Covid-19 variants that are resistant to one or more of the vaccines used in Turkey, could result in an increase
in infection rates and/or deaths and the tightening of lockdown restrictions to halt the spread. Any delay or
failure in the vaccination supply may negatively affect the normalization of the economy during the post-
COVID-19 period.
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The Republic is a foreign sovereign state and accordingly it may be difficult to obtain or enforce
judgments against it.
The Republic is a sovereign state. Consequently, the ability of noteholders to sue the Republic
may be limited.
The Republic has not consented to service or waived sovereign immunity with respect to actions
brought against it under United States federal securities laws or any State securities laws or the securities
laws of any other jurisdiction. In the absence of a waiver of immunity by the Republic with respect to these
actions, it would not be possible to obtain judgment in such an action brought against the Republic in a
court in the United States unless the court were to determine that the Republic is not entitled under the
Foreign Sovereign Immunities Act to sovereign immunity with respect to such action. Further, even if a
United States judgment could be obtained in such an action, it may not be possible to enforce in the Republic
a judgment based on such a United States judgment. Execution upon property of the Republic located in
the United States to enforce a United States judgment may not be possible except under the limited
circumstances specified in the Foreign Sovereign Immunities Act.
The courts of Turkey will not enforce a judgment obtained in a court established in a country other
than Turkey unless:
·
There is in effect a treaty between such country and Turkey providing for reciprocal
enforcement of court judgments;
·
There is de facto reciprocity in such country of judgments rendered by Turkish courts; or
·
There is a provision in the laws of such country that provides for the enforcement of
judgments of the Turkish courts.
There is no treaty between the United States and Turkey providing for reciprocal enforcement of
judgments. There is no de facto reciprocity between the United States and Turkey. Moreover, there is
uncertainty as to the ability of an investor to bring an original action in Turkey based on U.S. federal or non
Turkish securities laws.
Turkish courts have rendered at least one judgment in the past confirming de facto reciprocity
between the courts of New York State and Turkey. However, since de facto reciprocity is decided by the
relevant court on a case by case basis, there is uncertainty as to the enforceability of court judgments
obtained in the United States or the United Kingdom by Turkish courts.
In addition, the Turkish courts will not enforce any judgment obtained in a court established in a
country other than Turkey if:
·
the defendant was not duly summoned or represented;
·
the defendant's fundamental procedural rights were not observed and the defendant brings
an objection before the Turkish court against the request for enforcement on either of these
grounds;
·
the judgment in question was rendered with respect to a matter within the exclusive
jurisdiction of the Turkish courts;
·
the judgment is incompatible with a judgment of a Turkish court between the same parties
and relating to the same issues or, as the case may be, with an earlier foreign judgment on
the same issue and enforceable in Turkey;
·
the judgment is not of a civil nature;
·
the judgment is clearly against public policy rules of Turkey;
·
the court rendering the judgment did not have jurisdiction to render such judgment;
·
the judgment is not final and binding with no further recourse for appeal under the laws
of the country where the judgment has been rendered; or
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·
the judgment was rendered by a foreign court which treated itself as competent even
though it had no actual relationship with the parties or the subject matter at hand and the
defendant brings an objection before the Turkish court against the request for enforcement
on this ground.
Furthermore, to be enforceable under the laws of Turkey, the choice of laws of a foreign
jurisdiction or submission to the jurisdiction of the courts of such a foreign jurisdiction should indicate the
competent courts with sufficient precision. Therefore, lack of precision while determining the competent
court of a foreign jurisdiction may render the choice of foreign court unenforceable. Also, Turkish law
enables the parties' ability to choose the law applicable to claims relating to tort and/or unjust enrichment
only after the commitment or occurrence of the relevant tortious act or the relevant unjust enrichment.
As a result, it may not be possible to:
·
effect service of process outside Turkey upon any of the directors and official officers
named in this prospectus; or
·
enforce, in Turkey, court judgments obtained in courts of jurisdictions other than Turkey
against the Republic or any of the directors and official officers named in this prospectus
in any action.
There can be no assurance that the Republic's credit ratings will not change.
Long-term foreign currency debt of the Republic of Turkey is currently rated sub-investment grade
by four nationally recognized statistical rating organizations, Fitch Ratings Limited ("Fitch"), S&P Global
Ratings Europe Limited ("Standard & Poor's"), Moody's Investors Service Inc. ("Moody's") and Japan
Credit Rating Agency, Ltd. ("Japan Credit Rating").
On July 12, 2019, Fitch lowered Turkey's rating to "BB-" from "BB" with a negative outlook. On
November 1, 2019, Fitch revised Turkey's outlook from "negative" to "stable" and affirmed its "BB-"
rating. Fitch stated that Turkey had continued to make progress in rebalancing and stabilizing its economy,
leading to an easing in downside risks since Fitch's previous review in July 2019. On February 21, 2020,
Fitch affirmed Turkey's current rating and outlook. On August 21, 2020, Fitch affirmed Turkey's current
rating but revised its outlook to "negative" from "stable". According to the statement released by Fitch,
while the given rating was supported by Turkey's moderate levels of government and household debt, large
and diversified economy with a vibrant private sector, and GDP per capita and Ease of Doing Business
indicators that compares favourably with `BB' medians, Turkey's weak external finances, a track record of
economic volatility, high inflation and political and geopolitical risks were remarked as negative factors.
On the negative side, Fitch mainly pointed to exacerbated external financing risks, and an increased risk of
insufficiently monetary policy tightening which was contributing to further external imbalances, market
instability and a more disorderly adjustment. On February 19, 2021, Fitch affirmed Turkey's current rating
at "BB-" and revised its outlook to "stable" from "negative". Fitch mainly pointed to easing near-term
external financing risks on the positive side. On August 13, 2021, Fitch kept Turkey's credit rating and
outlook unchanged. On December 2, 2021, Fitch affirmed Turkey's current rating but revised its outlook
to "negative" from "stable". Fitch stated that the Central Bank's ("CBRT") monetary policy easing cycle
and the prospect of further rate cuts or additional economic stimulus ahead of the 2023 presidential election
had led to a deterioration in domestic confidence and rising inflation, and these developments created risks
to macroeconomic and financial stability. On February 11, 2022, Fitch lowered Turkey's credit rating to
"B+" and maintained its outlook as "negative". Fitch cited weak policy credibility and predictability, high
inflation, low external liquidity relative to high external financing requirements and dollarization, and
geopolitical risks as reasons for the downgrade. The next announced dates of Fitch for the review of credit
rating actions with respect to Turkey are scheduled for July 8, 2022 and November 18, 2022.
On August 17, 2018, Standard & Poor's lowered Turkey's foreign currency long term credit rating
to "B+" and its local currency long term credit rating to "BB-" and assigned a stable outlook for both rating
categories. Standard & Poor's stated that the downgrade reflects its expectations that the extreme volatility
of the Turkish Lira and the resulting projected sharp balance of payments adjustment will undermine
Turkey's economy. Standard & Poor's also noted that the weakening of the Lira is putting pressure on the
indebted corporate sector and has considerably increased the funding risk for Turkey's banks. Standard &
Poor's indicated that it could lower the Republic's credit ratings if (1) it sees an increasing likelihood of a
systemic banking crisis with the potential to undermine the country's fiscal position or (2) Turkey's
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economic growth turned out to be materially weaker than currently projected, with a deeper recession taking
place over the four-year forecast horizon. On May 6, 2020, on July 24, 2020, on January 22, 2021, on May
28, 2021, and on October 22, 2021, Standard & Poor's kept Turkey's credit rating and outlook unchanged.
On December 10, 2021, Standard & Poor's affirmed Turkey's current rating but revised its outlook to
"negative" from "stable". The next announced dates of Standard & Poor's for its solicited and unsolicited
review of credit rating actions with respect to Turkey are scheduled for April 1, 2022 and September 30,
2022.
On June 14, 2019, Moody's downgraded Turkey's long-term issuer and senior unsecured debt
ratings to "B1" from "Ba3" and assigned a negative outlook. According to Moody's, its credit view of
Turkey balances the large, diversified economy and still-moderate levels of government indebtedness
against heightened external vulnerabilities and a continued erosion of institutional strength and policy
effectiveness. Moody's indicated that economic policy uncertainty persists despite the tighter fiscal and
monetary policies in place since September 2018. Moody's underlined that external refinancing
requirements remain high and costly and the risk of a balance of payments crisis continues to rise. On
September 11, 2020, Moody's downgraded Turkey's long-term issuer and senior unsecured debt ratings to
"B2" from "B1" and affirmed its "negative" outlook. Moody's stated that the three key drivers for the
downgrade were as follows: (i) Turkey's external vulnerabilities are increasingly likely to crystallize in a
balance of payments crisis; (ii) as the risks to Turkey's credit profile increase, the country's institutions
appear to be unwilling or unable to effectively address these challenges; and (iii) Turkey's fiscal buffers,
which have been a source of credit strength for many years, are eroding. On December 4, 2020, on June 4,
2021 and on December 3, 2021, Moody's kept Turkey's credit rating and outlook unchanged. The next
announced dates of Moody's for its solicited and unsolicited review of credit rating actions with respect to
Turkey are scheduled for May 27, 2022 and November 25, 2022.
On April 10, 2020, Japan Credit Rating lowered Turkey's long-term issuer and senior unsecured
debt ratings to sub-investment grade "BB+" from "BBB-" and assigned a negative outlook. Japan Credit
Rating stated that the outlook for the Syrian situation and for COVID-19 remained highly uncertain, and
the downward pressure on the Turkish Lira was likely to lead to further decline in Turkey's foreign
exchange reserves and would put further pressure on external financing by the private sector if the problems
related to Syria and COVID-19 became serious and prolonged. Japan Credit Rating indicated that further
fiscal stimulus might be required to prevent economic bottoms, and the general government debt, which
stood at 33% of GDP ("GDP") at the end of 2019, was likely to increase significantly in the future. On May
31, 2021, Japan Credit Rating downgraded Turkey's longterm issuer and senior unsecured debt ratings to
"BB" from "BB+" and assigned a stable outlook.
A security rating is not a recommendation to buy, sell or hold securities and may be subject to
suspension, reduction or withdrawal at any time by the assigning rating agency. Any adverse change in an
applicable credit rating could adversely affect the trading price for the notes and have the potential to affect
the Republic's cost of funds in the international capital markets and the liquidity of and demand for the
Republic's debt securities. Any adverse change in outlook or credit watch by Standard & Poor's, Fitch,
Moody's or Japan Credit Rating could have similar adverse effects. The Republic's current long-term debt
ratings consist of sub-investment grade ratings from Standard & Poor's, Moody's, Fitch, and Japan Credit
Rating. These ratings indicate that the notes are regarded as having significant speculative characteristics,
and that there are major ongoing uncertainties or exposure to financial or economic conditions which could
compromise the Republic's capacity to meet its financial commitment on the notes.
The ongoing conflict between Russia and Ukraine could negatively impact the Republic.
In response to the recent military operations of Russia in Ukraine and Russia's recognition of the
independence of the self-proclaimed republics of Donetsk and Luhansk in the Donbas region of Ukraine,
the Republic's Ministry of Foreign Affairs has issued press releases indicating Turkey's opposition to these
actions and noting that Turkey's support for the political unity, sovereignty and territorial integrity of
Ukraine will continue. Turkey has also announced that it intends to implement all the provisions of the
1936 Montreux Convention which allows Turkey to restrict passage of military ships through the Bosphorus
straits during a time of war, except when they are returning to their bases.
Furthermore, the governments of the United States, the United Kingdom, the European Union,
Japan and other jurisdictions have announced the imposition of extensive sanctions on certain industry
sectors in Russia and the regions of Donetsk and Luhansk and on certain individuals in Russia and abroad.
The sanctions announced to date include restrictions on selling or importing goods, services or technology
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