positive scenario for Turkey from Fitch


AA correspondent, answering questions Arispe, Turkey’s credit rating outlook from “negative” to “stable to” be revised to reflect the return of a more consistent and orthodox policy mix with a new economic team. This development has reduced the short-term external financing risks. “

The Central Bank of Turkey (CBT) monetary policy steps assessing the Arispe, “Central Bank monetary policy was tightened 675 basis points. In addition, transparency and predictability has returned to the one-week repo rate as the main policy tool to try to improve.” He used his expressions.

Stating that previous regulatory measures were withdrawn to stimulate credit growth, Arispe said, “The Ministry of Treasury and Finance plans to lower the budget deficit target for 2021 to support the decline in inflation. renewed. ” found the assessment.

“The change in investor perception and domestic policy led to a significant appreciation of the Turkish lira, a decrease in the risk premium, and some net inflow of capital. International reserves stabilized and recovered slightly,” Arispe said. said.

POSITIVE FOR BASIC SCENARIO FROM TURKEY -FİTCH

Senior Director of Fitch Ratings analyst Erich Arispe and Turkey, “Our basic scenario, the reduction in the current account deficit for the continuation of the current policy mix, there is a gradual decline in inflation and 2021-2022 to support a moderate recovery in international reserves.” found the assessment.

Arispe, Turkey in monetary, fiscal and credit policy of consistency, the process of rebalancing the economy, said it would support the credibility of the key to the new economic team.

– FACTORS THAT MAY AFFECT TURKEY’S RATING

Arispe, progressive period in which the relationship can affect the development of Turkey’s credit rating to positive assessment found the following:

“Among the factors that could lead to a positive rating actions, deficit reduction, through stronger external liquidity and the dollarization of the decline we noted that reducing the external vulnerability of Turkey. A steady downward trend in inflation, reduction in Turkey’s in the reconstruction of monetary policy credibility and geopolitical risks will be positive for the grades. “


Source: STAR.COM.TR by www.star.com.tr.

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