8/23/2016
International Organizations Commented on Turkey’s Economy
Fitch: "Turkey’s economy is still ‘investable’ but the note seems to be ‘negative’.”
Japanese Credit Organisation JCR: "Central Bank’s recent lenition on the money policies creates additional risks for inflation. In the case the policy lenitions continue we expect TRY to face the risk of rapid loss of value for the rest of the year."
International credit rating organisations are monitoring Turkey’s economy closely. In addition to the negative outlook ratings, Turkey’s economy is also still confirmed to be “investable” at the same time. Recently, Moody's started monitoring Turkey’s investable credit rating for reduction. Fitch stated that they have reduced Turkey’s rating. "Growth is expected to weaken due to dropping investments" In accordance with the statement published on the international credit rating company Fitch Ratings' internet site, Fitch Ratings affirmed the “investable” rating of Turkey with “BBB-” and changed the rating outlook from “steady” to “negative”. Statement included the following: "Political uncertainty pose a risk for economic policies and is expected to impact economic performance. While growth is expected to weaken due to investments dropping, Fitch’s estimate is 3.4 due to a strong start for the year. This growth rating is higher in comparison with the other countries in the same group". Japanese JCR: "Central Bank’s recent lenition on the money policies creates additional risks for inflation” Japanese credit rating organisation JCR whose government is in close economic relationship with the Turkish Government and involved in such very large scale projects as Marmaray, Sinop Nuclear Power Plant Project, İzmit Bay Crossing Bridge, made statements regarding developments in the Turkish economy. Japan Credit Rating Agency (JCR) Eurasia President Orhan Ökmen stated that "International financial conditions are optimal in terms of maintaining investible status of the Turkey’s economy". Ökmen, in his written statement, despite the weak outlook of the external demand, the invigorating effect of global risk appetence triggered by the perception that the recovery of the oil prices, lenient money policies and low interests will continue in the long term, is supporting the improvement of Turkey’s financial position. Stating that despite the coup attempt, the government is maintaining the stability completely the statement read “Democracy weaknesses marring the investment conditions, destabilised international relations, impacts of the terror in Middle East, internal turmoil, public polarisation, and high inflation still pose obstructions in front of investors”. Organisation, regarding the Central Bank, made the following assessment; "Central Bank’s recent lenition on the money policies creates additional risks for inflation. Signals suggesting that the lenition may continue strengthens the perception that the CB policies are in conflict with the conjuncture and oblivious to the global risks. In the case the policy lenitions continue we expect TRY to face the risk of rapid loss of value for the rest of the year”.
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