CEE & Turkey

External Financing Risks to Turkish Banking Sector ‘Manageable’ - ING

As Turkey braces for the economic impact of the COVID-19 crisis, the banking sector looks likely to be called to play a larger role in facilitating the government’s stimulus plans. But despite a recent spike in NPLs and foreign exchange pressures, the risks to the country’s banks appear manageable, according to a recent report by Oleksiy Soroka, Senior High Yield Credit Strategist at ING.

22 May 2020

Turk Eximbank Inks USD678mn Loan to Help Domestic Exporters

Turkey’s export credit agency secured a USD678mn syndicated loan from a group of domestic and international lenders, according to a social media post published by the country’s Trade Minister.

19 May 2020

Ukraine Finally Passes Banking Reforms, Clearing a Path for IMF Bailout

Ukraine passed an amendment to its banking rules this week that would prevent insolvent banks from being returned to their previous owners, potentially unlocking billions of dollars in support from the IMF and other multilateral institutions.

14 May 2020

BBH: Turkey’s Desperate Moves Unlikely to Buoy the Lira

The Turkish lira continues to tumble. This feels like a rerun of the last lira crisis back in August 2018. Surprisingly little has changed fundamentally in the nearly two years that have passed, as officials have largely refrained from taking any significant actions except those that make it even harder to invest in Turkey. Turkey used to be the darlings of EM. Now, we fear it will end up being…

11 May 2020

Emerging Europe Shifts from Dollars to Euros for Credit

Last year saw euro-denominated credit overtake US-dollar denominated credit for emerging European economies, standing at EUR377bn by end-2019, according to data from the Bank for International Settlements (BIS). The growth of euro-denominated credit outside the euro area slowed by 6% overall, however.

30 Apr 2020

Turkey’s Central Bank Cuts Rates More than Expected, Raising Concerns Over FX-Denominated Debt

Turkey’s Central Bank cut the policy rate by a full percentage point to 8.75% this week in a bid to lower the cost of domestic borrowing, but analysts warn the move could pile additional pressure on the country’s corporate sector by making it harder to pay back foreign currency debt.

23 Apr 2020

Akbank Renews USD510mn Syndicated Loan Despite Market Volatility

Akbank has successfully renewed a USD510mn syndicated loan, marking a rare transaction amidst a volatile market backdrop. With a one-year maturity, the loan priced at LIBOR+2.25%, lower than the previous cost of borrowing on the facility in March last year.

3 Apr 2020

Ukraine Passes Historic Land Ownership and Banking Reforms, Paving Way for IMF Aid

Lifting the moratorium on land purchases of farmland in Europe’s agricultural powerhouse has long been seen as a key condition for the Fund’s support and could finally open the door to the European Union for the country.

1 Apr 2020

Kazakhstan Bucks Trend as Other Central Banks Follow US Fed in Slashing Rates

Central Asian republics have scrambled to raise rates as their currencies plummeted following a double blow from COVID-related market turmoil and a collapse in the oil price.

17 Mar 2020

Turkish Banking Sector Outlook Improving - ING

Following strong performance last year, many in the Turkish banking sector are looking ahead at 2020 with optimism, according to Oleksiy Soroka, Senior High Yield Credit Strategist at ING.

12 Mar 2020

Turkish Economy Shows Strong Rebound 4Q2019, Shift Away from Credit-Driven Growth Still Needed

2019 GDP growth was underpinned by a positive contribution from net exports at 2.3%, while domestic demand dragged down 1.4% – but in Q4 those dynamics reversed, according to BBVA report.

2 Mar 2020

Turkey Delays Structural Reforms in Favour of Credit Fuelled Recovery – Chatham House

Despite a strong recovery since the economic crisis of 2018, Turkey is not out of the woods yet. Binging on cheap credit may have pulled the economy out of recession for now, stimulating key sectors and driving consumption, but it leaves the lira vulnerable, according to a recent report by Fadi Hakura, Turkey Specialist and Manager of the Turkey Project at Chatham House.

20 Feb 2020

Prospect of Early Romanian Election Sparks ‘Benevolent’ Market Reaction – ING

A successful no-confidence motion against Romania’s government has raised the prospect of early elections and may usher in a period of political instability, but the market has reacted relatively well according to ING emerging market strategist Trieu Pham.

7 Feb 2020

NKBM’s Subordinated Bond Issue ‘Credit Positive’ – Moody’s

Nova Kreditna banka Maridor, Slovenia’s second-largest bank is planning to issue a EUR90.4mn subordinated bond – the bank’s first foray into the international capital markets since its 2013 default and subsequent privatisation.

6 Feb 2020

Eastern European and Turkish Bond Market Activity Picks Up, Driven by Bank Issues

An FI bond’s record price tightening, a new issuer from the CIS, a USD-denominated perp from a major Russian lender and three Turkish issues have blown the CEEMEA bond markets wide open.

5 Feb 2020

Geopolitical Policy Uncertainty, Asset Quality Deterioration, Vulnerability to Fickle Investor Sentiment Weigh on EM Banks – Especially in Turkey

Global and domestic tensions that could threaten policy continuity, asset quality deterioration, and shifting emerging market investor sentiment remain to remain the dominant risks for emerging market banks in 2020, says S&P Global. Turkey remains particularly vulnerable.

27 Jan 2020

Surprise IsBank USD750mn Issue Opens Up Turkish Bond Markets in 2019

It was the first subordinated bond by a Turkish FI this year.

21 Jan 2020

Turkey: Why “the Time is Now” to Go Green

After the volatility and crises that shook Turkey’s markets last year, the country’s economy has been on the road to recovery throughout 2019. While low global rates are pushing investors to hunt for yields in the Turkish market among others, many are also facing growing pressure to incorporate environmental, social or governance (ESG) considerations into their portfolios – which means those…

17 Jan 2020

Sabanci CFO on the Pivot Towards High-Tech and Broadening Access to Long-Term Funding

Large firms often fear getting outshone by their smaller and more nimble rivals, but Sabanci Holding – one of Turkey’s largest industrial and financial conglomerates – has recently emerged from a period of deleveraging to go on the offensive, making a series of strategic acquisitions and capitalising on emerging market opportunities that place technology at the centre of its growth strategy over…

19 Dec 2019

HSBC Turkey Sees Syndicated Loan, Bond Volumes Rising on The Road to Recovery

Following a tumultuous 2018, Turkey’s economy is now back on the road to recovery as the pathway to reform becomes clearer and global markets stabilise. Bonds & Loans speaks with Yiğit Arslancık, Assistant General Manager and Head of Wholesale Banking at HSBC Turkey about improving market sentiment, the growth in sustainable finance, and investor engagement.

6 Dec 2019