Turkey’s transactions deficit exceeds expectations of $ 2.9 billion

Source: Arab.net

The Turkish Central Bank said that the current account deficit in June amounted to $ 2.934 billion. The number is higher than Reuters’ forecast of a deficit of $ 2.825 billion.

In May, the current account deficit was $ 3.782 billion. In 2019, the Turkish current account surplus reached 1.674 billion dollars, according to Reuters.

According to data, the Turkish government’s cash balance recorded a deficit of 9.73 billion Turkish liras, equivalent to about $ 1.4 billion in May 2020, while the balance that excludes interest payments recorded a deficit of 1.02 billion liras.

Moody’s credit rating agency said that the outlook for the Turkish banking system remains negative, at a time when the Corona virus is putting pressure on credit conditions.

Moody’s expects that there will be pressure on the profitability of Turkish banks due to the decrease in lending volumes and the increase in provisions.

In addition, the Turkish banking system expects additional pressure on capital, due to the devaluation of the local currency.

Of the Turkish banking system, she says, the deep economic disruption caused by the outbreak of the Coronavirus will reduce borrowers’ ability to repay.

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