Turkey, like other fast-growing emerging countries, has significantly improved its terms of integration with the global capital market before as well as after the international crisis. Emerging markets’ risk premia and interest rates are driven primarily by worldwide investment conditions and risk appetite, but steady progress in national economic fundamentals in the 2000s has considerably enhanced Turkey’s credibility and reduced capital costs. In comparison to peer countries, Turkey has enjoyed a strong fall in risk premia, an important decline in domestic interest rates, but improvement in credit ratings has been comparatively slower.