Blow against Turkish economy… Moody's agency downgraded 20 financial firms

NEWS DESK

Turkey was exposed to a new blow after Moody's agency downgraded the classification of nearly 20 financial firms in the country as the lira continues to suffer due to a conflict between the United States and Ankara.

The Financial Times newspaper quoted from the agency referring to the increase of risks in the Turkish banking sector as a result of the currency rate crisis after the collapse of the Turkish lira about 40 percent versus the US dollar.

Moody's agency said that the decline came due to the continued deterioration of the investors’ morale which could lead to reducing the funding operations.

It explained that the Turkish banks may suffer in the future as they depend to a large extent on foreign currency financing.

In the next 12 months, the Turkish banks will refinance about $ 77 billion in foreign currency bonds according to what Moody's said, that is, 41 percent of total market financing.

While economic experts say that the policies of the Turkish President Recap Tayyip Erdogan and his intervention in the affairs of monetary policy contributed to the delivery of the economy and the currency to this deteriorated situation.

Erdogan intervened in the central bank’s policies, refused to raise the interest rates to counter the inflation and faced the economic disaster by blaming what he called a foreign conspiracy.

A.H

ANHA