Fitch: Turkish banks can cover short market closure

By Tuba Sahin

ANKARA (AA) - The foreign-currency liquidity of Turkish banks is sufficient to cover a short-lived market closure and moderate outflow of FX deposits, according to credit ratings agency Fitch on late Tuesday.

It projected the banks’ short term foreign currency debt service requirement, in the extreme event of a full market shutdown for 12 months, has increased to $45 billion-$50 billion.

Pointing to the latest developments since Central Bank Governor Naci Agbal was dismissed on March 20, Fitch said: "We expect banks’ external debt to fall in 2021 and foreign funding costs to rise amid greater global risk-aversion."