Turkish bonds are bad – News International: Europe

The three main rating agencies in the world have criticized the stability of Turkish bonds. Moody & # 39; s and S & P further reduced the government bonds of the country on Friday.

Previously they were already in the so-called clutter area, with which rating agencies identify extremely risky assets. Although Fitch did not take an assessment decision, it said that the Turkish measures to combat the crisis were inadequate.


Moody & # 39; s reduced the long-term debt of the country from Ba2 to Ba3 and set the outlook for "negative". S & P relegated its rating from BB to B, but left the outlook stable.

The American rating agency Fitch considers the steps taken by Turkey to combat the lira crisis insufficient. "Turkey's incomplete response to the devaluation of the lira is unlikely to stabilize the currency and the economy sustainably," Fitch said Friday in London. It was necessary to increase the credibility and independence of the central bank and to reduce economic and financial imbalances.

Insufficient financial injection

Although the central bank indirectly increased its effective base rate by 1.5 percentage points, banks did not offer financing for the main card, but only for higher overnight rates. On the markets, however, according to the creditworthiness alerts, it is assumed that only a regular rise in interest rates can lure capital back to the country.

The investment support of 15 billion dollars from Qatar has contributed to the stabilization of the lira, he said. However, such injections were not sufficient to meet the Turkish foreign exchange needs. This is estimated at $ 229 billion in 2018 – far more than the Turkish foreign exchange reserves. (chk / sda)

created: 18.08.2018, 04:59

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