Fitch: Turkish banks’ foreign currency liquidity sound

Dünya Executive - - OVERVIEW -

Turk sh banks’ external debt ncreased n the f rst s x months of the year but the sector’s fore gn currency (FC) l qu d ty rema ns suff c ent to cover matur ng short-term FC debt, accord ng to F tch Rat ngs on Sept. 21.

“Banks’ external debt rose $9 b ll on to $172 b ll on n the f rst half of th s year, reflect ng a p ck-up n bond ssuance n ben gn market cond t ons and fore gn-exchange movements that resulted n upward revaluat ons of euro and l ra obl gat ons,” read a wr tten statement. F tch also stated that the bank ng sector would ma nta n adequate access to the debt market w th ab l ty to rollover ts fore gn debt, “wh le the r ava lable FC l qu d ty should mean they are reasonably placed to cope w th a short-l ved market closure.” The agency warned, however, that a prolonged loss of market access would br ng cons derable r sks for banks’ FC l qu d ty and Turkey’s external f nances more generally.

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