Global markets are pricing in a Turkish default. The Erdogan administration is fixated on its pre-election stimulus and flattering Trump. The IMF says it ain’t had a call. And the IIF quite frankly is saying WTF?
bne IntelliNews’ calculations show the precarious situation the central bank faces as the unrelenting battle to defend the lira takes an alarming toll. No wonder Turks fear for their hard currency savings.
Ekrem Imamoglu, who will fight an election rerun in what observers say is a crucial test of remaining democracy in Turkey, unveils alleged misspending.
Ankara is running out of options in its fight to defend the lira and raise capital.
If the move is confirmed it would fly in the face of aggressive rhetoric from Ankara in which it has said the US cannot deny it the right to import energy shipments from its neighbour.
May’s reading is the lowest ever recorded since the data compilation began 15 years ago. Renewed weakening of lira appears to have hit sentiment.
State budget fiscal metrics currently more vulnerable to a currency crisis than they were before last summer’s nasty episode. And fresh market turmoil is widely expected.
As Turkey’s first ever drillship, escorted by a naval frigate, prepares to start operations, Ankara declares it “does not recognise the unilateral and illegitimate exclusive economic zone claims of the Greek Cypriots”.
President targets tycoon who heads group’s advisory council. Tuncay Ozilhan raised concerns over Turkish industry’s debt woes and said country must abide by universal principles of democracy or “it becomes something else”.
Despite Turkey’s economic strife, local lenders’ spring loan refinancing season is progressing undeterred. But Libor and Euribor rates have almost doubled compared to a year ago.
Assessing economic flashpoints on horizon, analyst says external debts equal to around 24% of Turkey’s GDP need to be serviced over the next 12 months, leaving the lira vulnerable to bouts of risk aversion.
Typically praised, the Treasury's housekeeping is going to pot amid country's economic turmoil.
Calendar-adjusted index in positive territory. Fresh pre-election stimulus on the cards. Economy may have grown in Q1 but double-dip recession not ruled out. Istanbul revote impact may hinge on battle for Kurdish vote.
100% import tariffs on goods from Serbia and Bosnia have pushed consumer prices up in Kosovo, but politicians’ claims they would help local producers were never realised, think tank GAP finds.
More market jitters on report that Treasury may tap central bank reserves to borrow 40bn lira as government budget deficit is deeper than expected. OMFIF op-ed says Erdogan’s mishandling of currency crisis heightens probability of Ankara default.
Public lenders reportedly sold $1bn on May 9 and overnight to curb latest bout of depreciation. Officials have been up to no good for months, but it’s gone unreported.
Yields on Turkish global bonds jumped as political tensions over the upcoming re-run of the mayoral election in Istanbul gave investors the jitters. Raiffeisen International analysts see the central bank as in danger of losing control of the market.
Erdogan party hacks nevertheless ask why markets give this particular authoritarian regime such a hard time. Answer may be its lack of technocrats with freedom to run macro policy. Lickspittles get you nowhere.
All-in cost will be Libor+250bp and Euribor+240bp.
SMEs are under-represented in international trade and their contribution to value added remains low, the latest SME Policy Index finds.