Presidential poll unlikely to resolve Turkey's problems: Moody's
Friday, August 15, 2014
ANKARA - International credit rating agency, Moody’s announces that result of presidential elections would not solve Turkey’s chronic problems, stressing the growing necessity for structural reforms in a report released Friday.
"Until the political landscape reaches some stability, the country’s structural reform agenda is likely to suffer, leaving Turkey exposed to potential shifts in international market sentiment," vice president of Moody’s, Alpona Banerji, said in the report.
Moody’s stressed high inflation, high current account deficit, worries for the independence of vital institutions and possibility of a suffering export performance in second half of the year due to geopolitical strains as important risk factors.
"We caution that the conclusion of the presidential election is unlikely to resolve Turkey’s key economic and institutional credit challenges because of ongoing domestic political tension and uncertainty that will prevail at least through the next parliamentary elections," report said.
Moody’s noted that despite an improvement current account deficit is still too high and financing of this deficit is dependent on capital inflow from abroad.
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