11/07/18

Turkish Lira Tumbles To Record Low As "Ticking Time Bomb" Looms In Banking System



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Turkish Lira Tumbles To Record Low As "Ticking Time Bomb" Looms In Banking System
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Having exercised his newly-omnipotent capabilities to alter central bank decrees and appointing a puppet cabinet, Turkish President Erdogan is now urging the general public to borrow in the currency in which they are paid, but, as Bloomberg reports, that warning came too late for the country's energy companies.

Turkish power producers are emerging as one of the biggest risks to the nation's banks after they plowed billions of dollars into new power generation, distribution projects and deals over the past 15 years. Now, with the lira depreciating faster than they can raise electricity prices, some utilities earn less per year than what they have to repay in foreign-currency loans, according to the Ankara-based Electricity Producers' Association.

Domestic banks are the most exposed to ....

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