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Qatar to invest $2bn in Turkish eurobond issue in January
An influx of foreign funding this year has helped the Turkish government stabilise the lira currency in recent months

Qatar is expected to buy $2 billion worth of Turkish eurobonds next month, delivering on an earlier agreement to shore up Ankara’s forex reserves, said two officials with knowledge of the matter.

The Turkish economic officials, who requested anonymity, said Doha had already invested some $1 billion as part of that broader deal.

In November, Reuters reported that Turkey and Qatar were in talks for Doha to provide up to $10 billion in funding, including up to $3 billion by the end of this year.

Qatar’s government did not immediately respond to a request for comment. Turkey’s Treasury was not immediately available for comment.

“With the expected $2 billion in the first weeks of January, we will reach the initial $2-3 billion plan, from the total $10 billion investment,” one of the officials told Reuters.

Qatar has strong ties with Turkey. Ankara supported Doha when it was hit by an embargo from Saudi Arabia and three other Arab states Doha in 2017 in a bitter political row that was resolved last year.

The new funding would be nicely timed for Turkish President Tayyip Erdogan, who faces what is likely to be a hotly contested bid for re-election in May or June, with soaring inflation a key campaign issue.

An influx of foreign funding this year has helped the government stabilise the lira currency in recent months, and annual inflation is edging lower from above 85 percent.

This month, Turkey’s treasury said it issued $2 billion of dollar-denominated eurobonds, with 55 percent bought by investors in the Middle East.

The second official told Reuters that Qatar did not contribute as much to this December eurobond issue as it had planned due to high demand from elsewhere.

“A new issue is planned for the first week of the year and Qatar is seen to buy some $2 billion of it. The rest of the amount is expected to come throughout 2023,” that person said.