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.
3 comments:
Trump doing North Korea and now Erodgan bending the Turkish economy over.
A good week so far.
Perhaps Turkey will have to delay the F-35's on lack of cash.
Maybe call for an Islamic summit?
doing N.K.? is that like doing a girl? perhaps the reverse is true: he got done? But time will tell
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