S&P sends key message on fund crisis

S&P officials described the authorities’ policy response as swift and strong, while noting that the developments have so far not spread to the broader financial system.

S&P expects the negative impact to remain limited as long as the fund crisis stays contained and investors maintain confidence in Turkish lira-denominated assets. The agency also expects Türkiye’s average inflation to be around 30% this year, with economic growth at approximately 3%. The recovery in reserves is also seen as supportive of Türkiye’s credit rating.