Cevdet Yılmaz: OVP Targets, Reserve Increase, and Economic Forecasts

OVP Targets and KKM Removal President Cevdet Yılmaz announced that the KKM has been completely eliminated under the new Special Asset Plan (OVP).
The transition was carried out smoothly without harming financial markets.
Reserve Increase Net foreign reserves grew from $98.5 billion in May 2023 to $188.2 billion by 28 August 2026, an increase of roughly $90 billion.
CDS Score Decline The Credit Default Swap (CDS) score fell from above 700 in May 2023 to below 220, indicating a significant improvement in credit risk.
Growth and Inflation Forecasts 2026 growth revised from 3.8% to 3.3% Year‑end inflation forecast raised from 16% to 28.4% Inflation expected to be ~28% this year, ~21% next year, and drop to 13.5% the following year Growth projected at 4.2% in 2027, 4.6% in 2028, and 5% by the end of the program, with a single‑digit inflation target Employment and Fiscal Discipline During the fiscal discipline program, an additional 2.1 million jobs are expected to be created, and the unemployment rate is projected to fall below 8%.
Debt and Current Account Public debt to GDP: 23.9% Corporate debt to GDP: 38.9% Current account deficit to GDP: 2.3% (temporary) Energy and Tourism Outlook Brent oil price assumption increased from $64.3 to $89.3 per barrel Energy bill expectation rose from $63 billion to $71 billion Tourism revenue expectation fell from $68 billion to $65 billion Green Transition and Trade Diversification Yılmaz highlighted that the green transition can reduce energy imports and the current account deficit.
He noted that Turkey is preparing to host COP31 and that progress in the green economy will strengthen macro‑economic stability.
He also pointed out Asia’s growing share in the global economy and affirmed that Turkey will continue diversifying its trade partners while maintaining very friendly relations with Japan.