Ankara - SANA
The Turkish economy plummeted to what it was 25 years ago after Moody's credit rating agency downgraded Turkey's rating from “B1” to “B2” and kept Turkey's credit scene at a negative level.
The Turkish newspaper Zaman stated that this rating, which is five levels below the level that allows investment in the country, is the worst credit rating Turkey has seen, including the 2001 crisis.
Moody's recently issued a report on the Turkish economy warning that this situation may push Turkish banks and companies to default on their debts and that the Treasury will bear these debts, noting that the risks include the sanctions that the United States and the European Union may impose on Turkey.
Moody's indicated that the interventions of the Turkish regime authorities resulted in a sharp decline in the value of the currency and would lead to financial and economic turmoil in Turkey, pointing to the continuous decline in the value of the lira, the permanent departure of capital to Turkey, the sharp decline in the central bank’s foreign exchange reserves, and the doubling of the bank’s foreign exchange rates. The Turkish Central Bank since the beginning of this year, and its foreign exchange reserves have reached their lowest levels in the last twenty years.
Moody's confirmed that the Turkish lira has lost about 25 percent of its value against the dollar since the beginning of this year, which has seriously reinforced the risk of deteriorating the government's budget and the balance of payments crisis, which will lead to a sudden economic recession.
Moody's expects that the Turkish government's debt burden will rise to 42 percent of GDP during the next year due to the decline in the value of the lira and the budget deficit.
The Turkish lira plunged to record low levels, and the dollar recorded rapid jumps ahead of it, and the Turkish currency continues to deteriorate due to the deteriorating political and economic conditions in the country as a result of the policies of Recep Tayyip Erdogan's regime and its repressive measures that led to a decline in tourism and investments and a decrease in the country's foreign exchange earnings.
