NEWS Finance        22/12/2020

Fitch sees Turkish Banks' Asset Quality weakening in 2021

International credit ratings agency Fitch Ratings, in its report published on its website, sees Turkish Banks' asset quality weakening in 2021.


The agency summarised its report as follows:


“Growing Pressure on Asset Quality Fitch Ratings has negative outlooks on most Turkish banks’ asset quality scores, signalling that banking sector asset quality is likely to weaken in 2021. We expect the operating environment for the sector to remain challenging in the aftermath of the coronavirus pandemic, despite the economic recovery. Borrowers’ debt-servicing capacity will be pressured by the withdrawal of government stimulus packages, maturing loan deferrals and higher lira interest rates. At the same time, underlying asset quality deterioration will become increasingly visible in reported metrics as regulatory forbearance is reduced. The uncertain path of the pandemic and sensitivity to potential further lira depreciation are additional risks for banks' asset quality.”


Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 19.25% in August 2021       Turkey’s official unemployment rate shoots back up to 12% in July 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020