The Turkish President, Tayyip Erdogan, arrives at a meeting to present his ruling AK Party's lawmaker candidates for the city of Istanbul, Turkey, May 29, 2018. REUTERS/Osman Orsal
Asia Times: Turkey’s economic crisis has just begun
What happens next may look like Greece during its financial collapse – meaning Turkey’s economy could shrink by 10%-20%
The Turkish central bank managed to halt the free-fall of the country’s currency last week with a sharp rise in interest rates. But the move failed to stop the free-fall of Turkey’s equity market and – far more dangerous – the collapse of the credit quality of Turkey’s banks. Only last October, the euro-denominated 10-year bond of Turkey’s largest private lender, Garanti Bank, yielded just 3%. Now it yields more than 7%, and the dollar value of the bond has fallen from over 120 euros to around 80 euros.
Turkey’s Istanbul 30 stock market index meanwhile has fallen by 35% in US dollar terms since August 29, 2017. Its most vulnerable lender, Halk Bank, lost 63% of its US dollar value in the same period and now trades at 40% of book value.
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Update #1: How Turkey's currency turmoil and the uncertainty of the upcoming elections could affect its struggling economy (The Independent)
Update #2: Turkey’s Erdogan faces surprise test in tight vote (BBC)
WNU Editor: This is why Turkish President Erdogan called an election for June 24 .... he sees the dark clouds approaching.
Trump doing North Korea and now Erodgan bending the Turkish economy over.
ReplyDeleteA good week so far.
Perhaps Turkey will have to delay the F-35's on lack of cash.
Maybe call for an Islamic summit?
ReplyDeletedoing N.K.? is that like doing a girl? perhaps the reverse is true: he got done? But time will tell
ReplyDelete