Turkish banks can cover short market closure: Fitch


The foreign-currency liquidity of Turkish banks is sufficient to cover a short-lived market closure and moderate outflow of FX deposits, according to credit ratings agency Fitch on late on April 6.

It projected the banks’ short-term foreign currency debt service requirement, in the extreme event of a full market shut down for 12 months, has increased to $45 billion-$50 billion.

Pointing to the latest developments since Central Bank Governor Naci Ağbal was dismissed on March 20, Fitch said: “We expect banks’ external debt to fall in 2021 and foreign funding costs to rise amid greater global risk-aversion.”

Hurriyet Daily News


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