Turkey In Crisis (Bloomberg headlines)

[daveG]

Bloomberg ramping up even more pressure On Turk economy. Stating" desperate measures in the air in Turkey, trading rooms awash with talk of a bailout by the IMF. Not what our Reg wanted to hear! but I feel sorry for the man in the street who will eventually have to pick up the pieces.

[mercury]

Are the banks in any danger as they were before?

[Christie]

Just depends on how many of the wee mans shoe boxes they have.

[Scunner]

The actual answer is that they have government backed insurances in place (to a maximum level). So the question is more do you believe in the government if anything went bang...

[JohnF]

government backed insurances in place (to a maximum level).

A point worth making also, is that the 100,000tl compensation figure has been eroded severely by the fall in the lira - so if you have a GBP/USD/EUR account then the limit is just over £14k (and the equivalent in $ & €).

Some analysts (Goldmans) have predicted 7tl to the dollar at some point in the near future, and if that were to happen several Turkish banks would be on a shoogly peg (Scottish financial term) due to their capital levels being eroded.  They reckon Yapi Kredi are currently in a very weak position.

If it was me, I would be wary about keeping anything substantial in a Turkish bank right now.

JF

[KKOB]

Isn't there a pub called the Shoogly Peg in Edinburgh ?