Fitch uncertainty alert after second round of elections

The Fitch credit rating agency noted that pressures in the balance of payments area have increased due to unconventional policies that support growth in Turkey, and that political and economic uncertainty in Turkey due to the second round elections will continue into the future. least until the end of the month.

In the memorandum released yesterday by Fitch, it was indicated that the economic policies that will be implemented after the elections will be followed.

THE PROBLEMS THAT THE GOVERNMENT MUST ESTABLISH ARE LISTED

In the note, it is stated that the government that will be formed after the elections will face problems such as deferred demand for foreign currency, pressure on the lira, a large budget deficit, declining international reserves and high inflation.

In the note it was indicated that it will be verified if the combination of monetary and fiscal policy is more reputable and consistent in terms of credit rating, and it will be monitored how much it provides confidence, how much it reduces risks at the macro level and financial stability, and if it will facilitate the access to external financing. (Reuters)