"What happens next may look like Greece during its financial collapse – meaning Turkey’s economy could shrink by 10%-20%
The Turkish central bank managed to halt the free-fall of the country’s currency last week with a sharp rise in interest rates. But the move failed to stop the free-fall of Turkey’s equity market and – far more dangerous – the collapse of the credit quality of Turkey’s banks.
...Turkey’s banks are shut out of world capital markets, and the country is hard put to raise the US$50 billion in new hard currency it needs to finance a current account deficit running at around 6% of GDP..."
As the stock market prefigures, the weak point is the banking system.
...Turkey’s banks are shut out of world capital markets, and the country is hard put to raise the US$50 billion in new hard currency it needs to finance a current account deficit running at around 6% of GDP..."
As the stock market prefigures, the weak point is the banking system.
Read on.
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