NEWS Finance        30/11/2020

Moody’s sees difficult operational environment for Turkish banks in 2021

International credit ratings agency Moody’s has published its Outlook Report for Financial Institutions of Emerging Markets, titled “2021 outlook negative as operating environments heal from pandemic and asset risk remains a wild card” as of November 30th, 2020


In its outlook report, Fitch foresees a difficult operating environment for Turkish banks. The agency’s comment regarding Turkish banks was as follows:


“Turkish banks’ creditworthiness will remain weak and under pressure. This stems from the country’s rising external vulnerability and the likelihood of a balance-of-payments crisis because of the authorities’ inadequate policy reaction. Combined with the impact of the coronavirus outbreak, these factors will result in a difficult operating environment in 2021. Despite a challenging economic environment and funding market conditions for Turkish banks, Turkish banks' reliance on short-term wholesale foreign funding has reduced moderately to $44 billion as of June 2020 from $64 billion available as of April 2019. Foreign currency liquidity has been maintained at broadly similar levels of $90 billion as of June 2020. Turkish banks have also continued to maintain access to the syndicated loans market throughout the coronavirus pandemic.”



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