Fitch reduces the sovereign debt rating for Turkey

<img itemprop = "image" src = "https://dotemirates-media.s3-eu-west-1.amazonaws.com/2018/07/9fc2f518994a167deb7b607c53120a5c.jpg" alt = "Fitch reduces the rating of the Sovereign debt for Turkey Fitch Ratings deteriorates Turkey's sovereign debt "The risks to the country's macroeconomic stability have increased," Fitch said in a statement: "Turkey's credit rating has dropped from BP + to BP, thereby further rating its position on speculative debt. The agency has clbadified it as "negative" in the future, which means that it could soon reduce it again.

In his statement, "The credibility of economic policy has deteriorated in recent months, and the first steps have been taken," Fitch said in a statement, citing the increasing difficulty of the financial climate, the 39; acceleration of inflation and the impact of the depreciation of the Turkish lira on the private sector.

Fitch announced the reduction of Turkey's sovereign debt rating a few hours after the first meeting of the new Turkish government led by Recep Tayyip Erdogan, which was mainly devoted to urgent economic challenges.

Turkey has officially moved this week from the parliamentary system to the presidential system that keeps Erdogan in the executive branch alone, reinforcing the fears of his opponents, who accuse him of fleeing power to tyranny.

Observers worry about negative economic indicators that continue to follow. The Turkish lira continues to fall against the dollar and has lost 30% of its value since the beginning of 2018. Inflation has exceeded the annual average of 15% in June.

Erdogan, however, renewed his promise to bring Turkey into the 10 richest. The world by the declaration of the Turkish Republic founded by Kemal Ataturk in 1923.

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