UP IN FLAMES: Turkey’s credit rating cut to JUNK amid fears country could WRECK Eurozone
TURKEY’S credit rating has been slashed amid warnings the country’s wrecked finances could cause devastating economic damage across Europe.
By JASON TAYLOR
Express.co.uk
Sat, Sep 24, 2016
Ratings agency Moody’s announced it is downgrading Turkey’s economy to “junk”, another huge blow to the troubled country which is recovering from a failed military coup against President Tayyip Erdogan and hostile tensions with Russia.
But although its economy is slowing dangerously and GDP per capita – at €13,000 – is less than half the EU average, Brussels said it will continue accession talks and is even considering SPEEDING UP negotiations.
Moody’s warned that the deterioration in Turkey’s credit rating will continue for the next two to three years as investors are scared off and economic reforms stall.
It said: “Turkey continues to operate in a fragile financial and geopolitical environment and that its external vulnerability has risen, both over the past two years and more recently as a result of unpredictable political developments and volatile investor perception.
“This has credit implications for Turkey given its dependence on foreign capital.
“The risk of a sudden, disruptive reversal in foreign capital flows, a more rapid fall in reserves and, in a worst-case scenario, a balance of payments crisis has increased,” said the rating agency.
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