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Credit rating agency Fitch said that if the United States hardens its monetary policy faster than expected, Turkish companies and institutions could see their credit profile weakened by the depreciation of the TL and the US. Increase in the cost of borrowing. published in the evening and 'quantitative relaxation of quantitative tightening in the stress scenario: Turkey report, titled as expected in the baseline scenario for organizations that have a rapid tightening, but what actually happen if the devaluation of Lira areas where bearing the precision of enterprises and organizations in Turkey, the increase in the costs of borrowing and slowing economic growth be expressed.
the value of the dollar gained from such a scenario, the hardest that developing countries losses in the value of currencies of developing countries like Turkey and three portfolio flows
" There could be 6 lire in 2019 "
Raporda says," Wage increases in the United States are more pronounced, which leads the Fed to raise interest rates to 4.5% and if US Treasury bond yields reach 5% by the end of 2019, the TL will be severely depreciated, at the end of $ / TL 2018, by the end of May 2019, Slowing demand domestic means that a portion may be dissolved in profit margins but inflation may remain double digits until the end of 2020. "
Raporda also said that the biggest threat weighing on the credit scores of companies is the foreign debt.
In the stress scenario, the effect of the TL's depreciation on the credit ratings of banks is due to the balance between the assets and liabilities of each bank. we calculate that the 10% depreciation of the TL against the dollar of 70% and the basket of 30% of euros will reduce the total capital stock by about 40 basis points at the end of April. "
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