Internal debt structure of turkey and sustainability

In today?s world ?borrowing? is used as one of the important and natural ways of financing in almost every county. Governments, having difficulties with performing their resporsibilities, can borrow Money to finance their expenses with the authorization of the laws. But, governments, equipped with limitless authority use their powers uncontrollably and this effects main indicators of domestic economy negatively.In Turkey, indebtedness which increased rapidly during 1980?s and which has become a vicious circle, effects economic balances negatively. The government has exhausted all of the national savings and debt burden of the state has become unrepayable. High real interest rates, increasing frequency of crises,uncertainties and lack of disipline in fiscal system almost all the government income to be spent for debt. In consequence of all these, the government can not finance investments and can nat save funds. Along with permanent and rapid increase of government debt, insufficient growth and lack of confident athmosphere endanger the sustainability of the government?s borrowing policy. In case of not controlling the expenditures, not finding additional financial resources, and not creating a trustworthy atmosphere, it seems a small probability for the government to sustain the existing debt policy.In this thesis, the sustainability of internal debt for Turkish government will be examined. In the first part of the study; the reasons and sources of indebtedness, in the second part borrowing tools and debt management will be scrutinized. In the last part; coclusions will be drawn about the sustainability with the help op various ratios.