Credit rating agency foresees external debt of Turkish banks to fall this year
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 Tuesday.
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 Agbal 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.”
