Comparative analysis of primary dealer system in Turkey with foreign countries practices in terms of the public debt management

Public debt stock of Turkey has tended to increase since 1980?s, and this increase has raised the borrowing risk and cost. Deterioration in the public sector borrowing together with economic crisis has directed the debt managers for taking some cautious to improve the financial conditions and to decrease the cost of debt.Primary dealer system, which was adopted by many developed countries, was put into practice in order to activate the public debt management in 2000 in Turkey. To decrease the foreign dependency by providing demand from domestic market for public debt, and to meet the requirements for public finance with at least possible risk and cost are aimed by primary dealer system.In this study, objectives and benefits of the primary dealer system are examined and practices of primary dealer system in Turkey and some foreign countries are analysed.Key Words:1.Public Debt2.Public Debt Management3.Primary Dealer System4.Primary Dealer5.Primary Market6.Secondary Market7.The Obligations of the Treasury