Obligation Turkiye 6% ( US900123BJ84 ) en USD

Turkiye

100 % ▲

Turquie

US900123BJ84 ( en USD )

6% par an ( paiement semestriel )

13/01/2041

Prospectus brochure de l'obligation Turkey US900123BJ84 en USD 6%, échéance 13/01/2041

100 000 USD

3 000 000 000 USD

900123BJ8

14/07/2025 ( Dans 72 jours )

La Turquie est un pays transcontinental situé à la fois en Europe et en Asie, possédant un riche héritage culturel et historique qui englobe des influences byzantines, ottomanes et anatoliennes.

L'Obligation émise par Turkiye ( Turquie ) , en USD, avec le code ISIN US900123BJ84, paye un coupon de 6% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 13/01/2041

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424B5 1 y87020b5e424b5.htm 424B5
Table of Contents

Filed Pursuant to Rule 424(b)(5)
Registration No. 333-133956

PROSPECTUS SUPPLEMENT
(To the Prospectus dated August 10, 2006)
$1,000,000,000

TÜRKIYE CUMHURIYETI
(The Republic of Turkey)

6.00% Notes due January 14, 2041

The Republic of Turkey (the "Republic" or "Turkey") is offering $1,000,000,000 principal amount of its 6.00% Notes due
January 14, 2041 (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 January 14 and July 14 of each year, commencing on July 14, 2011.

This prospectus supplement and accompanying prospectus dated August 10, 2006, constitute a prospectus for the purposes of
Article 5.3 of Directive 2003/71/EC (the "Prospectus Directive").

Application has been made to the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the
"CSSF"), as competent authority under the Prospectus Directive, to approve this prospectus supplement and the accompanying
prospectus dated August 10, 2006 as a prospectus for the purposes of the Prospectus Directive. 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 (2004/39/ EC) ("MiFiD").

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, as such, will contain provisions regarding acceleration and voting
on amendments, modifications, changes and waivers that differ from those applicable to certain other series of U.S. dollar
denominated debt securities issued by the Republic. Under these provisions, which are described in the sections entitled "Description
of the Notes -- Default; Acceleration of Maturity" and "-- Amendments and Waivers" beginning on page S-24 of this prospectus
supplement and "Collective Action Securities" beginning on page 12 of the accompanying prospectus, the Republic may amend the
payment provisions of the notes and certain other terms with the consent of the holders of 75% of the aggregate principal amount of
the outstanding notes.

Per Note

Total

Public Offering Price
96.631 %
$966,310,000
Underwriting discount

0.08 %
$
800,000
Proceeds, before expenses, to the Republic of Turkey
96.551 %
$965,510,000

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 expect to deliver the notes on or about
January 12, 2011 (the "Issue Date"), through the book-entry facilities of The Depository Trust Company, ("DTC"), against payment
in same-day funds.

Joint Book Running Managers
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Barclays Capital
Deutsche Bank Securities
J.P. Morgan

The date of this prospectus supplement is January 5, 2011.

The Republic accepts responsibility for the information contained within this document. The Republic declares that having
taken all reasonable care to ensure that such is the case, the information contained in this document is, to the best of its
knowledge, 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.

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.

TABLE OF CONTENTS

Page
Prospectus Supplement
Summary
S-1
Risk Factors
S-4
Recent Developments
S-9
Description of The Notes
S-23
Global Clearance and Settlement
S-29
Taxation
S-32
Underwriting
S-38
Legal Matters
S-40
Table of References
S-41

Prospectus
Where You Can Find More Information

2
Data Dissemination

3
Use of Proceeds

3
Debt Securities

3
Collective Action Securities

12
Plan of Distribution

15
Debt Record

16
Validity of the Securities

16
Official Statements

16
Authorized Agent

16

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.

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 "US$", "$", "U.S. dollars" and "dollars" in this prospectus supplement are
to lawful money of the United States of America.
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S-i
Table of Contents
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.
S-ii
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SUMMARY

This summary should be read as an introduction to the prospectus supplement and the accompanying prospectus. Any
decision to invest in the notes by an investor should be based on consideration of the prospectus supplement and the
accompanying prospectus as a whole. Where a claim relating to the information contained in the prospectus supplement or the
accompanying prospectus is brought before a court in a Member State of the European Economic Area, the plaintiff may, under
the national legislation of the Member State where the claim is brought, be required to bear the costs of translating the
prospectus supplement and the accompanying prospectus before the legal proceedings are initiated.

Issuer
The Republic of Turkey.

The Republic of Turkey is located in southwestern Asia, where it borders Iran,
Armenia, Georgia, Azerbaijan, Iraq and Syria, and southeastern Europe, where it
borders Greece and Bulgaria, with a total territory (inclusive of its lakes) of
approximately 814,578 square kilometers. Turkey's population, as of December
2009, was estimated to be 72,561,312.

The Republic of Turkey was founded in 1923 and currently has a parliamentary
form of government. It has recently undertaken many reforms to strengthen its
democracy and economy, in connection with its accession negotiations with the
European Union.

Securities Offered
$1,000,000,000 principal amount of 6.00% Notes due January 14, 2041.

Maturity Date
January 14, 2041.

Issue Price
96.631% of the principal amount of the notes.

Interest Payment Dates
January 14 and July 14 of each year, commencing on July 14, 2011.

Status and Ranking
Upon issuance, the notes will be our direct unconditional and general
obligations and will rank equally with our other external debt denominated in
currencies other than Turkish Lira which is (i) payable to a person or entity not
resident in Turkey and (ii) not owing to a Turkish citizen. See "Debt
Securities -- Status of the Debt Securities" and "Debt Securities -- Negative
Pledge" in the accompanying prospectus.

Markets
The notes are offered for sale in those jurisdictions where it is legal to make
such offers. See "Underwriting".

Listing and Admission to Trading
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.

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Negative Pledge
Clause (9) of the definition of Permitted Lien set forth on pages five and six of
the accompanying prospectus shall read as follows for purposes of the notes:
Liens on assets (other than official holdings of gold) in existence on January 12,
2011, provided that such Liens remain confined to the assets affected thereby on
January 12, 2011, and secure only those obligations so secured on January 12,
2011.

Form
The notes will be book-entry securities in fully registered form, without
coupons, registered in the names of investors or their nominees in
denominations of $200,000 and integral multiples of $1,000 in excess thereof.
S-1
Table of Contents

Clearance and Settlement
Beneficial interests in the notes will be shown on, and transfer thereof will be
effected only through, records maintained by DTC and its participants, unless
certain contingencies occur, in which case the notes will be issued in definitive
form. Investors may elect to hold interests in the notes through DTC, Euroclear
Bank S.A./N.V. ("Euroclear") or Clearstream Banking Luxembourg, société
anonyme ("Clearstream Banking Luxembourg"), if they are participants in such
systems, or indirectly through organizations that are participants in such
systems. See "Global Clearance and Settlement".

Payment of Principal and Interest
Principal and interest on the notes will be payable in U.S. dollars or other legal
tender of the United States of America. As long as the notes are in the form of a
book-entry security, payments of principal and interest to investors shall be
made through the facilities of DTC. See "Description of the Notes -- Payments
of Principal and Interest" and "Global Clearance and Settlement -- Ownership
of Notes through DTC, Euroclear and Clearstream Banking Luxembourg".

Default
The notes will contain events of default, the occurrence of which may result in
the acceleration of our obligations under the notes prior to maturity. See "Debt
Securities -- Default" and "-- Acceleration of Maturity" in the accompanying
prospectus.

Collective Action Securities
The notes will be designated Collective Action Securities under the Fiscal
Agency Agreement, dated as of December 15, 1998, between the Republic and
The Bank of New York Mellon (successor-in-interest to JPMorgan Chase Bank,
N.A.), as amended by Amendment No. 1 to Fiscal Agency Agreement, dated as
of September 17, 2003, and Amendment No. 2 to the Fiscal Agency Agreement,
dated as of January 7, 2004 (collectively, the "Fiscal Agency Agreement"). The
notes will contain provisions regarding acceleration and voting on amendments,
modifications, changes and waivers that differ from those applicable to certain
other series of U.S. dollar denominated debt securities issued by the Republic
and described in the accompanying prospectus. The provisions described in this
prospectus supplement will govern the notes. These provisions are commonly
referred to as "collective action clauses." Under these provisions, the Republic
may amend certain key terms of the notes, including the maturity date, interest
rate and other payment terms, with the consent of the holders of not less than
75% of the aggregate principal amount of the outstanding notes of the series,
voting as a single class. Additionally, if an event of default has occurred and is
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continuing, the notes may be declared to be due and payable immediately by
holders of not less than 25% of the aggregate principal amount of the
outstanding notes of the series, voting as a single class. These provisions are
described in the sections entitled "Description of the Notes -- Default;
Acceleration of Maturity" and "-- Amendments and Waivers" in this prospectus
supplement and "Collective Action Securities" in the accompanying prospectus.

Sinking Fund
None.

Prescription Period
None.

Use of Proceeds
The Republic will use the net proceeds of the sale of the notes for general
financing purposes, which may include the repayment of debt.
S-2
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The amount of net proceeds (before expenses) and exclusive of accrued but
unpaid interest is $965,510,000.

Risk Factors
Risks associated with the notes generally include: 1) the trading market for debt
securities may be volatile and may be adversely impacted by many events;
2) there may be no active trading market for the notes; 3) the notes may not be a
suitable investment for all investors; 4) the notes are unsecured; 5) the terms of
the notes may be modified, waived or substituted without the consent of all of
the holders; 6) there can be no assurance that the laws of the State of New York
in effect as at the date of this prospectus supplement will not be modified; and
7) there may be certain legal restraints in relation to investment in the notes
with regard to the particular circumstances of any investor.

Risks associated with the Republic generally include: 1) there can be no
assurance that Turkey's credit ratings will not change; 2) changes in the
Republic's domestic and international political and economic environment may
have a negative effect on its financial condition; 3) the risks arising from the
relatively short maturity structure of domestic borrowing and the potential
deterioration in financing conditions as a result of market, economic and
political factors, which may be outside the Republic's control, may jeopardize
the debt dynamics of the Republic; 4) potential inflation risks; 5) risks
associated with Turkey's current account deficit; 6) risks associated with the
foreign exchange rate of the Republic's currency; 7) Turkey is a foreign
sovereign state and accordingly it may be difficult to obtain or enforce
judgments against it; 8) risks associated with delays or other adverse
developments in the Republic's accession to the European Union which may
have a negative impact on the Republic's economic performance and credit
ratings; 9) risks associated with pending arbitration proceedings; and 10) risks
associated with external shocks.

These risk factors are described in the section entitled "Risk Factors" of this
prospectus supplement.

Fiscal Agency Agreement
The notes will be issued pursuant to the fiscal agency agreement.

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Taxation
For a discussion of United States, Turkish and Luxembourg tax consequences
associated with the notes, see "Taxation" in this prospectus supplement.
Investors should consult their own tax advisors in determining the foreign, U.S.
federal, state, local and any other tax consequences to them of the purchase,
ownership and disposition of the notes.

Governing Law
The notes will be governed by the laws of the State of New York, except with
respect to the authorization and execution of the notes, which will be governed
by the laws of the Republic of Turkey.
S-3
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RISK FACTORS

You should read this entire prospectus supplement and the accompanying prospectus carefully. Words and expressions
defined elsewhere in this prospectus supplement and the accompanying prospectus have the same meanings in this section.
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 Notes

The trading market for debt securities may be volatile and may be adversely impacted by many events.

The market for the notes issued by the Republic is influenced by economic and market conditions and, to varying degrees,
interest rates, currency exchange rates and inflation rates in the United States and Europe and other industrialized 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 and market conditions will not have any other
adverse effect.

There may be no active trading market for the notes.

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.

The notes may not be a suitable investment for all investors.

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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 its 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 behavior 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 obligations of the Republic.
S-4
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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 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. See "Description of the Notes -- Default; Acceleration of Maturity" and
"-- Amendments and Waivers" in this prospectus supplement and "Collective Action Securities" in the accompanying
prospectus.

There can be no assurance that the laws of the State of New York in effect as at the date of this prospectus will not be
modified.

The conditions of the notes are based on the laws of the State of New York in effect as at the date of this prospectus
supplement. No assurance can be given as to the impact of any possible judicial decision or change to New York law or
administrative practice after the date of this prospectus supplement.

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. You should consult your legal advisers to determine whether and to what extent (1) the notes are legal
investments for you, (2) the notes can be used as collateral for various types of borrowing and (3) other restrictions apply to its
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.

Risks Relating to the Republic

Turkey 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, your ability to sue the Republic may be limited. See "Debt Securities --
Governing Law and Consent to Service" in the accompanying prospectus.

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. 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
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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.

There can be no assurance that Turkey's credit rating will not change.

Long-term debt of the Republic is currently rated BB (Positive Outlook) by Standard and Poor's, Ba2 (Positive Outlook)
by Moody's and BB+ (Positive Outlook) by Fitch. 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. The Republic's
current long-term debt ratings are sub-investment grade. They 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.
S-5
Table of Contents
Political and Economic Environment.

The Republic has from time to time experienced volatile political, economic and social conditions and two financial crises
in 1994 and 2000/2001. It is possible that these may recur and, if they are sufficiently severe, affect the Republic's financial
condition. Turkey has not defaulted on any principal or interest of any external debt represented by bonds issued in public
international markets since it began issuing such bonds in 1988. In 1978, 1979 and 1980, Turkey rescheduled an aggregate
amount of approximately $3.95 billion of its external debt consisting of commercial and government credits, which represented
20.6% of Turkey's total outstanding external debt at that time. Turkey initiated the rescheduling to avoid a possible default
under its external debt. Since that rescheduling, Turkey has always paid, when due, the full amount of principal and interest on
its direct and indirect external debt. Turkey completed all payments under the rescheduling in July 1992.

Turkey has been a parliamentary democracy since 1923. Since its formation in 1923, Turkey has had 60 governments and
political disagreements have frequently resulted in early elections. In Turkey's most recent national elections, held in July 2007,
the Justice and Development Party won a large majority in the Assembly. Recep Tayyip Erdogan has served as Prime Minister
since March 2003. On August 28, 2007, Abdullah Gül was elected the 11th president of Turkey.

The Turkish military establishment has historically been an important factor in Turkish government and politics,
interfering with civilian authority three times since 1959 (in 1960, 1971 and 1980). Each time, the military withdrew after the
election of a new civilian government and the introduction of changes to the legal and political systems.

Any negative changes in the political environment of the Republic may affect the stability of the Turkish economy. In
addition, the failure of the Turkish Government to implement its proposed economic and financial policies may also adversely
affect the Turkish economy.

International Considerations.

As a result of economic instability in many developed and emerging markets, the international financial markets have
experienced a significant amount of volatility and many financial market indices have declined significantly. The potential
impact of such volatility on the Turkish market and on Turkish securities is uncertain.

The Republic is located in a region which has been subject to ongoing political and security concerns, especially in recent
years. Political uncertainty within Turkey and in certain neighboring countries, such as Iran, Iraq, Georgia, Armenia and Syria,
has historically been one of the potential risks associated with investment in Turkish securities. Political instability in the
Middle East has increased since the terrorist attacks of September 11, 2001. The period since the commencement of military
action by the United States and its allies in Iraq in March 2003 has been characterized by frequent incidents of violence and
sectarian conflict in Iraq and increased risk of terrorist acts both against the United States and its allies.

In recent years, Turkey has experienced a number of terrorist incidents, including four bombings in November 2003 and a
bombing in March 2004 and December 2008 in Istanbul. During 2006 Turkey experienced a series of bombings, including the
August 2006 bombings in Istanbul, Antalya and Marmaris. In May 2007, Turkey experienced a bombing in Ankara and
bombings in Istanbul in July 2008. If additional attacks occur in the future, Turkey's capital markets, levels of tourism in
Turkey and foreign investment in Turkey, among other things, may suffer.

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Refinancing Risk.

The Republic has sizeable amounts of domestic and international debt. Central government gross domestic debt stock was
approximately TL350.8 billion and central government gross external debt stock was approximately $77.1 billion as of the end
of November 2010. Given the relatively short maturity structure of domestic borrowing, any deterioration in financing
conditions as a result of market, economic or political factors, which may be outside the Republic's control, may jeopardize the
debt dynamics of the Republic.
S-6
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Inflation Risk.

In the past, the Republic experienced substantial inflationary pressures and inflation was one of the most serious problems
faced by the Turkish economy during the last decade. As a result of the financial crises in November 2000 and February 2001,
at the end of 2001, the Wholesale Price Index ("WPI") increased to 88.6% from 32.7% at the end of 2000 and the Consumer
Price Index ("CPI") increased to 68.5% from 39.0% at the end of 2000. Since 2001, due to the Government policies intended to
combat these high levels of inflation, which were supported by the 2002-2004 Stand-By Arrangement with the IMF, inflation
in the Republic has decreased substantially. WPI decreased to 13.8% at the end of 2004. CPI decreased to 9.3% at the end of
2004 and 7.7% at the end of 2005. In January 2005, the State Institute of Statistics introduced the Producer Price Index ("PPI")
to replace WPI and the PPI was approximately 2.7% at the end of 2005. The Republic's PPI and CPI for the December 2005 --
December 2006 period was 11.58% and 9.65%, respectively, for the December 2006-December 2007 period, 5.94% and 8.39%,
respectively, for the December 2007 -- December 2008 period, was 8.11% and 10.06% respectively, for the December 2008 --
December 2009 period, was 5.93% and 6.53%, respectively and for the December 2009 -- December 2010 period, was 8.87%
and 6.4%, respectively. There can be no assurance that inflation will not increase further in the near future. In particular, strong
domestic demand and an increase in global economic activity that influences commodity prices and external demand could
cause an increase in inflation. In addition, an increase in inflation and any significant depreciation of the New Turkish Lira may
affect negatively any efforts by the Turkish government to combat inflation.

Current Account Deficit.

The current account deficit ("CAD") has widened considerably in recent years mainly due to the widening trade deficit.
CAD increased from $7.5 billion in 2003 (2.5% of GDP) to $14.4 billion (3.7% of GDP) in 2004, $22.1 billion (4.6% of GDP)
in 2005, $32.1 billion (6.1% of GDP) in 2006, $38.2 billion (5.9% of GDP) in 2007, $41.5 billion (5.6% of GDP) in 2008 but
decreased to $14.4 billion (2.34% of GDP) in 2009. In January -- October 2010, the current account produced a deficit of
$35.7 billion, as compared to a deficit of approximately $9.2 billion in the same period of 2009. Because of slowing economic
activity and falling energy prices, imports dropped at a more rapid pace than exports and the foreign trade deficit narrowed from
the third quarter of 2008 until the last quarter of 2009 but since domestic demand has been greater than external demand in
2010, the trade deficit has been rising in 2010.

Exchange Rate Risk and Exchange Rate.

The depreciation of the Turkish Lira against the U.S. dollar or other major currencies might adversely affect the financial
condition of the Republic. Any significant depreciation of the Turkish Lira against the U.S. dollar or other major currencies
might also have a negative effect on the Republic's ability to repay its debt denominated in currencies other than the New
Turkish Lira, including the amounts due under the notes. As a result of the financial crises in November 2000 and February
2001, the Turkish Lira depreciated from TL675,004 per U.S. dollar at December 31, 2000 to TL1,446,510 per U.S. dollar at
December 31, 2001 and then further depreciated to TL1,642,384 per U.S. dollar at December 31, 2002. As the Turkish
Government began implementing economic and financial reforms, the value of the Turkish Lira increased to TL1,393,278 per
U.S. dollar at December 31, 2003. The Turkish Lira further appreciated to TL1,348,600 per U.S. dollar at December 31, 2004
and was YTL 1.34950 per U.S. dollar at December 31, 2005, YTL1.4056 per U.S. dollar at December 29, 2006 and
YTL1.1593 per U.S. dollar at December 31, 2007. Due to the market volatility, the Turkish Lira depreciated to YTL1.5218 per
U.S. dollar at December 31, 2008, TL 1.4873 per U.S. dollar at December 31, 2009, and TL 1.5376 per U.S. dollar at
December 31, 2010.

Accession to the European Union.

The Republic commenced negotiations on its accession to the European Union (the "EU") on October 3, 2005 and expects
to join the EU at some point in the future. However, the Republic's accession depends on a number of economic and political
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factors relating to both Turkey and the EU. Although the shared objective of the negotiations is accession, these negotiations are
an open-ended process, the outcome and timing of which cannot be guaranteed. The EU decided in 2006 to suspend
negotiations in eight out of 35 parts, or "chapters", and not to "close" the other 27 chapters, of the Republic's accession
negotiations because of the Republic's restrictions with respect to the
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Greek Cypriot Administration. More information, as well as a summary of the most recent EU Progress Report released on
November 9, 2010, is provided in the section entitled "Recent Developments" under the heading "International Relations" in
this prospectus supplement. Delays or other adverse developments in Turkey's accession to the EU may have a negative effect
on Turkey's economic performance and credit ratings.

Pending Arbitration Proceedings.

Several claimants have filed claims against the Republic ranging in the amounts of $750 million to $10 billion before the
International Center for the Settlement of Investment Disputes or under the United Nations Commission on International Trade
Arbitration Rules alleging either that (a) they have been harmed because the SDIF's takeover of banks indirectly impaired their
investments in companies affiliated with these banks or their shareholders, without adequate compensation or (b) they have
been indirectly harmed because the Republic cancelled certain contracts with companies in which they allege they held
investments. While the Republic does not believe that such proceedings will in aggregate have a material adverse impact on the
Republic, the outcome of these arbitration proceedings is uncertain.

The Republic's economy remains vulnerable to external shocks, including the current global economic crisis and those
that could be caused by future significant economic difficulties of its major regional trading partners or by more general
"contagion" effects, which could have an adverse effect on the Republic's economic growth and its ability to service its
public debt.

Emerging market investment generally poses a greater degree of risk than investment in more mature market economies
because the economies in the developing world are more susceptible to destabilization resulting from domestic and international
developments.

The Republic's economy remains vulnerable to external shocks, including the current global economic crisis. A significant
decline in the economic growth of any of the Republic's major trading partners, such as the European Union, could have a
material adverse impact on the Republic's balance of trade and adversely affect the Republic's economic growth. The European
Union is the Republic's largest export market. A decline in demand for imports from the European Union could have a material
adverse effect on Turkish exports and the Republic's economic growth.

In addition, because international investors' reactions to the events occurring in one emerging market country sometimes
appear to demonstrate a "contagion" effect, in which an entire region or class of investment is disfavored by international
investors, the Republic could be adversely affected by negative economic or financial developments in other emerging market
countries. While in recent years the Republic has improved its banking structure, reduced its external vulnerability and
consolidated sound macroeconomic policies, which in turn improved its borrowing costs and maturities, the Republic has been
adversely affected by such contagion effects on a number of occasions, including following the two financial crises in 1994 and
2000/2001 and the current global economic crisis. Similar developments can be expected to affect the Turkish economy in the
future.

There can be no assurance that any crises such as those described above or similar events will not negatively affect
investor confidence in emerging markets or the economies of the principal countries in Europe, including the Republic. In
addition, there can be no assurance that these events will not adversely affect the Republic's economy and its ability to raise
capital in the external debt markets in the future.
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