Moody's Assessed the Impact of Turkey's outbreak

Moody's Assessed the Impact of Turkey's outbreak

Credit rating agency Moody's assessed the impact of the outbreak in Turkey. The statement made by Moody's, "in 2018 currency shocks may repeat in Turkey" expressions were used. Ratings agency Moody's has evaluated the impact of the epidemic coronavirus on Turkey's economy. According the statement made by Moody’s, the Turkish economy will contract sharply this year due to the epidemic. Real growth will be recorded in 2021. In addition, he warned of a new currency shock of the Turkish economy similar to 2018. Foreign financial support and with the United States, the tensions of the improvement of the economy, attention will contribute positively Moody's, "Given the negative outlook of Turkey, the positive outlook or the possibility of notes raising is extremely low" he said. In the report, which prepared by Moody's and where the disclosures of Turkey's economy and credit rating assessment of quality of transport Turkey's credit profile of 'wear in corporate and government power worn last three years, uncertainty and external vulnerabilities in the policies' noted that reflects. It was stated that Turkey's financial markets have regained stability temporarily in 2019, but that date was destabilizing new concerns about the direction and the transparency of policy since. In addition, the report highlighted that country policies and concerns about transparency have further reduced reserves, increased dollarization and a rise in exchange rates again and it was said: “Inflation and external vulnerabilities continue to be high, and the weakness that continues in the lira creates conditions suitable for this situation, although the current account balance is almost balanced.”

"We Expect Real Growth in 2021"

In the report announced by Moody’s, the following statements about the Turkish economy were as follows: "Due to the shock coronavirus real GDP in 2020, the sharp narrowing in Turkey, we expect 2021 to be recorded real growth. "Inflation and external vulnerabilities continue to be high, and the ongoing weakness in TL creates conditions suitable for this situation, although the current account balance is almost stable.

"Like 2018 May Cause Currency Crisis"

"Again increased geopolitical tension in Turkey and even the possibility of stagflation set in 2018 driving can lead to a repetition of the crisis or extreme conditions. "Appropriate demographics and diversifies its trade partners, Turkey's strongest elements in terms of the customs union with the EU credit rating. Moderate flexibility offers some financial debt to the authorities. "Given the negative outlook of Turkey, the positive outlook or the possibility of notes raising is extremely low. "External financial support and reduced tensions with the US may have a positive impact on credit ratings. "Turkey's credit rating from international funding requirements are not followed by effective supportive policy framework, not fit to be downloaded as a reduction of inflationary pressures and the country's sustainable growth path."