International credit rating agency Moody lowered a credit rating scale from Turkey dropped to B1 while Baa3 & # 39; T. The view was left negative. In a statement about the decision taken by discount Moody's qualification in Turkey reflects our view that payments continued to increase the risk of a balance in the balance. Turkey's acute and devastating crisis payments to believe that the fragility of the balance at the moment notes B is the most appropriate level, & # 39; & # 39; he said.
The statement "# 39;" Reduction in the Central Bank currency reserves of Turkey's transparency and reveals more worried about independence – was used & # 39; expression & # 39; & # 39; Currency reserves of Turkey in decline for a long time by the Central Bank seems contradictory to continue with the established policy does not allow free floatation. Turkey's foreign exchange reserves and its buffer for the next weak 2-year economy expects to further weaken its short-term obligations compared to its global assessment and # 39 ;
Moody has created uncertainty in the Istanbul election again, faced with the US S-400 crisis and Turkey's economy will take into account the possible sanctions to pressure the United States Congress and goes Affirm that the financial system.
UNDER FOUR INVASTABLE LEVELS
Moody's B1 has four digits below the level of investment. Standard & Poors also evaluates Turkey at the same level with the B + rating. Fitch evaluates two levels below the level of investment with BB.
HISENDA Y FINANZAS MINISTRY: DECISION DOES NOT COMPLY WITH THE KEY INDICATORS OF THE TURKEY ECONOMY
The Ministry of Finance and Finance reacted to the decision. A statement from the Ministry "Moody's decision is incompatible with the fundamental indicators of the economy. The objectivity and impartiality of the analysis of the organization in the creation of a sign of Turkey's interrogation, "the statement said.
The Organization stressed that Turkey is 2.6 times more than the debt reserves, the most notlering above Moody of Turkey, this relationship was observed that for much of Turkey, even in some countries in the process of development.
Description of the Ministry said: & # 39; & # 39; The international credit rating agency Moody issued the agreement for rebates, is incompatible with the fundamental indicators of the Turkish economy and therefore the organizations in terms of objectivity and impartiality of The analysis creates question marks. The organization of the reservation of your Turkish debt assessment has emphasized that more than 2.6 times. This rate is well above us, even in some developing countries where Moody's has described it more than us.
In addition, almost half of external short-term debt also belongs to the banking sector, Turkish banks and the real sector of Turkey, the perceptions of Turkey, which is quite bad, the CDS of many gains as August and September 2018, They were even able to renew their debts. In the first quarter of this year, the debt recovery ratio was 128% for the banking sector and 165% for the real sector.
On the other hand, despite the currency reserves to be considered to some extent, it has been agreed internationally, according to the World Bank, when a term of five years we look at the reserve adequacy The average is measured through the development imports could be described as similar to Turkey Turkey is kept close to European countries.
Another factor that needs to be taken into account at the time of assessing economic vulnerabilities is the level of debt of economic actors. Turkey, when both the total economy, was seen at all levels economic actor as quite strong göstermektedir.2018 year-end yield, the average GDP of the total debt of emerging market economies realized that 212.6%, this rate of 156% in Turkey, 8. Similarly, while the proportion of debts with the GDP of the Turkish public sector is 33.6%, the average of emerging markets is 49.7% .
While the debt load of Turkish households is 14.7% of GDP, the average of the developing markets is 37.6%. The debt burden of our financial sector is 33% of GDP. On the other hand, the increase of the market average was 33.6%. While the total debt of our real sector accounts for 75.5% of our GDP, the average of the emerging markets is 91.7%.
In addition to all these data:
* Completion of the recapitalization of state banks,
* The reduction of imports in the balance of payments and the improvement of exports caused by the elimination of the needs of change in real terms,
* Facilitate access to finance for export oriented companies and implement the other reform agenda with determination with the IVME package.
* Downward trend in inflation,
* Increase in tourist revenue,
* We regret to see that the strategy document of the Ministry of Justice for Judicial Reform and many other positive developments have been ignored.
The Credit Rating Agency unjustly dealt with the question of the independence of the institutions and of the freer free market, which we do not even have to explain in the normal circumstances. With regard to the independence of the Central Bank and the policy carried out by the Central Bank, Turkey has determined the exchange rate regime and the negative consequences of the independent monetary policy that has not experienced to a large extent with the crisis of 2001.
basic elements of the economic policies implemented by Turkey since 2003, in all circumstances to meet the requirements of the free market economy Today, the floating exchange rate, as it is in the liberalization of capital flows and the center of our economic policies promoting entrepreneurship, which is why the Republic of Turkey in the news will never be done tomorrow either. & # 39; & # 39;
– T.C. Ministry of Finance and Finance (@ HMBakanligi) June 14, 2019