Econ­omy min­is­ter slams Fitch

Financial Mirror (Cyprus) - - FRONT PAGE -

Econ­omy Min­is­ter Ni­hat Zey­bekci has lashed out at rat­ings agency Fitch over its state­ment warn­ing of the con­tin­u­a­tion of po­lit­i­cal risks in Turkey fol­low­ing Re­cep Tayyip Er­do­gan’s pres­i­den­tial elec­tion win, only days af­ter tar­get­ing its fel­low agency Moody’s.

“It is im­pos­si­ble for us to re­gard the in­sti­tu­tion [Fitch] that is­sues po­lit­i­cal risk warn­ings af­ter our his­tory’s most im­por­tant and demo­cratic elec­tions as ob­jec­tive,” the min­is­ter wrote on his Twit­ter ac­count on Tues­day.

“You have to be blind and ig­no­rant to not to see the in­ten­tion be­hind Fitch’s de­ci­sion,” he blasted.

The agency, which has be­come the tar­get of the min­is­ter’s harsh words, had re­leased a state­ment on Mon­day, shar­ing its views on the im­pact of the Turk­ish elec­tions and the eco­nomic out­look.

“Er­do­gan’s out­right vic­tory in (Sun­day’s) vote, in the first round of Turkey’s first pop­u­lar pres­i­den­tial elec­tion, does lit­tle to ame­lio­rate the po­lit­i­cal risk to Turkey’s sov­er­eign credit pro­file,” Fitch Rat­ings said.

“Po­lit­i­cal risk will weigh on Turkey’s rat­ings through its po­ten­tial ef­fects to dis­cour­age cap­i­tal in­flows and re­duce pol­icy pre­dictabil­ity.”

Zey­bekci ac­cused Fitch “and its coun­ter­parts” of fail­ing to fore­see any eco­nomic de­vel­op­ments, in­clud­ing the 2008 fi­nan­cial cri­sis and over­look­ing the Turk­ish econ­omy’s “strengths.”

Over the week­end, the min­is­ter had crit­i­cised Moody’s as well, af­ter the agency ig­nored an­nounc­ing an an­tic­i­pated credit rat­ing for Turkey.

“We won’t al­low any­one to spec­u­late about Turkey. The credit rat­ing that was to be an­nounced ahead of the [pres­i­den­tial] elec­tions was mean­ing­ful for us,” the min­is­ter had said last Satur­day. Ar­gu­ing that agen­cies usu­ally make “po­lit­i­cally bi­ased de­ci­sions,” Zey­bekci had said last week that he ex­pected the rat­ings agency to give a neg­a­tive out­look for Turkey, trig­ger­ing a sig­nif­i­cant sell off in the stock mar­ket and de­pre­ci­a­tion in the Turk­ish Lira. Mean­while, Stan­dard & Poor’s (S&P) also re­leased a state­ment af­ter the elec­tions, say­ing the out­come will not im­pact Turkey’s cur­rent sov­er­eign credit rat­ing of BB+.

A change in macroe­co­nomic pol­icy is not ex­pected be­cause Er­do­gan was elected in the first round and his suc­ces­sor as pre­mier would be from the rul­ing Jus­tice and Devel­op­ment Party (AKP), the credit agency said.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.