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LATEST UPDATE 09:26
The legislative changes announced by Turkish Prime Minister Recep Tayyip Erdogan earlier this week will still challenge the independence of the Turkish central bank, Moody's says in an badysis
Among other things, the announced amendments provide for the reduction of the term of office of the Governor for at least five years, in an indicative period of four years, to the removal of the obligation for the Deputy Governors to have at least ten years of professional experience, and the delegation of power to appoint the governor and members of the board exclusively to the Turkish president
As Moody's points out, Erdogan also announced a number of cabinet changes, including the appointment of groom Berat Albayrak, as Minister of Finance. "No post has been found for Naci Agbal, or Mehmet Simsek, Vice President and Minister of Finance, respectively, in previous governments."
He emphasizes that these appointments will inevitably raise questions about the independence and the experience of the new government, the questioning of the effectiveness of the central bank, which is more neutral in terms of credits at this stage, given the importance of this institution's role in dealing with the growing imbalances of its economy Turkey, and the financial system
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