CEE & Turkey
It has been a patchy year for Turkey – and for EM fixed-income more broadly – with both macroeconomic and geopolitical factors weighing on growth and market sentiment in the first half last year. But the last few months of 2018 have seen a quiet recovery take place, and while no one is expecting an easy ride in 2019, conversations at an exclusive Breakfast Briefing hosted by HSBC and Bonds & Loans at this year’s Bonds, Loans & Sukuk Turkey Conference in November suggest that windows of opportunity will present themselves to Turkish banks and borrowers.
The emergence of a ‘market-friendly’ candidate has become a regular feature in modern election campaigns. But often such candidates fail to deliver on their economic promises, either because of domestic political constraints, tough external conditions, or misplaced belief in their pro-market sentiment.
Against a fairly challenging market backdrop, borrowers in Turkey have pushed through with a number of landmark transactions in 2018 as they look to prioritize risk and liability management. With an economic recovery on the horizon, we speak Eda Tanyel, Head of Structured Finance at HSBC in Turkey about the credit market outlook for the remainder of the year and beginning of 2019, how corporates are overcoming external funding challenges, and the growing role of Asian investors in the region’s infrastructure pipeline.
Turkey’s credit fundamentals are deteriorating, squeezed by high exposure of the corporates to USD debt and rising NPLs. Strong and transparent policy measures – including supporting local banks if necessary – are needed to breath life into the economy, Novruz Bashirov, Portfolio Manager at Rimrock Capital, told Bonds & Loans.
Bonds & Loans speaks with Burcu Geris, Vice President and CFO, TAV Airports Holding about the company’s funding objectives and how markets are influencing the company’s approach to fundraising.
Turkcell, a leading Turkish phone operator, and the China Development Bank (CDB) signed a multi-jurisdictional loan restructuring facility featuring a rare RMB-denominated tranche in a multi-currency 10-year deal.
Tevfik Eraslan, the CEO of İş Asset Management, a privately-owned investment manager based in Turkey (which also provides investment advisory services), discusses Q3 prospects for the Turkish economy, inflationary pressures and a diminishing political risk after next year’s elections.
United States sanctions against two Turkish government ministers triggered the recent bout of volatility in the Turkish currency market. While Turkey was fundamentally vulnerable to begin with, due to a lengthy period of bad economic policies, the fact that volatility was so severe and spread far beyond Turkey indicates that this was not just about Turkey. It is also about the major shift in America’s use of soft power on the global stage.
With Turkey seemingly approaching a critical junction in its economic trajectory, a call with the country’s Minister of Finance sheds light on how the country looks to tackle the rising challenges confronting it. Manulife analyst Richard Segal shares the details.
Branko Drcelic, Director of the Public Debt Administration at the Ministry of Finance, Serbia sat down with Bonds & Loans to discuss how the country moved from chronic deficits to a healthy surplus, catalysing a local currency debt capital market in the process.
- MLP Care CFO: Smart Balance Sheet Management Key to Finding Borrowing Windows in Turkey
- Turkey: What does the Financial Stability Report Tells Us?
- Turkey’s Post-Election Challenge: Keeping Monetary and Fiscal Policy in Sync
- EM Bond Outlook: Better 2H 2018 Expected
- Off the Record: Interest Rates, Election Uncertainty Testing Turkish Issuers