Turkish C.Bank warns against excessive borrowing

Turkish Central Bank called for long-term borrowing in Turkish lira instead of foreign currency.

Turkish C.Bank warns against excessive borrowing

Both public and private sector players should avoid excessive borrowing, and they should find ways to better manage their risks to strengthen the economy's resiliency to foreign shocks, the Turkish Central Bank said in a report, calling for long-term borrowing in Turkish lira instead of foreign currency.

The bank said it would continue to actively deploy required reserve ratio and liquidity management as policy tools to reduce macro-financial risks, adding maintaining fiscal discipline was of critical importance to financial stability.

The bank said global economy was slowly recovering from the crisis under the guidance of developing countries, expressing belief that chances for a new global recession looked dim.

The bank said the Turkish economy was on a rapid recovery path thanks to growing domestic demand coupled with dropping jobless rates and basic inflation indicators hovering within medium-term targets.

The bank said sales revenues of the real sector increased and its profitability performance was strengthened despite its growing debt stock, warning against a currency risk.


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Last Mod: 07 Aralık 2010, 13:42
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