The financial health of Turkey is constantly penibeler. The Turkish long-term interest rate rises to above 20 percent, the highest level ever for the country. It is therefore for the government to be very expensive to borrow money to make investments.
For comparison: for the Belgian government, the average long-term interest rates for bonds at 10 years, about 0.8 percent. Even on Greek bonds, the interest rate is currently 4 percent, and at the height of the euro crisis, there was a few months to a peak of almost 40 percent.
Analysts fear that the emergency measures will be needed, such as a loan from the International Monetary Fund (IMF), or a control on capital. From the government or the central bank kept the Tuesday afternoon still quiet.
The exchange rate of the lira fell on Tuesday but even a half a percent, to 5,3548 lira for one dollar. Monday lost the Turkish currency almost 7 percent in value since the beginning of this year it’s about 30 percent. By the depreciation of the lira also stands out inflation. The prices of consumer goods, and coats last month, about 15 percent higher than in the same period last year.
The sharp decline in the price is also bad news for the Turkish companies, which borrowed in foreign currency. Their ability to repay it is now strongly challenged. According to the news agency Bloomberg, based on data of the national bank, the Turkish business community to 337 billion dollars in foreign loans outstanding.
The financial markets are nervous about Turkey because of the increasing tensions between Ankara and Washington. The United States had issued last week new sanctions against Turkey due to the arrest of the Us pastor Andrew Brunson from 2016. That is since in a Turkish cell, on charges of ‘terrorism’ and ‘espionage’.
Last weekend riposteerde the Turkish president Recep Tayyip Erdogan on the American sanctions, the assets freeze of the American ministers of Justice and Home Affairs. Erdogan believes that his country is the victim of ‘a trade war’.