FX Loans Will Cost Turkish Companies, And the Economy

FX Loans Will Cost Turkish Companies, And the Economy

(Bloomberg) -- Turkish corporates have lop-sided balance sheets: foreign-currency assets fall short of debt. The decline in the lira will make servicing these loans more burdensome and potentially cut funding for firms, forcing repayments. Bloomberg Economics estimates this could strip 0.8 percentage points off GDP over the next 12 months.

©2018 Bloomberg L.P.