Russian Envoy Supports Kanal Istanbul Project, Turkish Sovereignty; Covid Cases On The Rise

LOCAL NEWS

• Russian Envoy says the Kanal Istanbul project (shipping initiative designed to bypass Bosporus waterway) does not impact the Montreaux convention and should be dealt with by Turkish Authorities.
  • Says the project & Montreaux are naturally linked, but will not cancel each other - new financial requirements will, however, be presented to ships using the canal
• Yesterday Erdogan noted Turkey remains committed to the Montreaux Convention and that the project does not impact the free passage of civilian ships. Says Bosporus congestion is threatening safety.
• Fitch: Turkish banks' foreign-currency liquidity is sufficient to cover a short-lived market closure and a moderate outflow of FX deposit.
  • Refinancing risks for Turkish banks have increased following the change of CBRT Gov Agbal and the ensuing market volatility and lira depreciation.
  • Expect banks' external debt to fall in 2021 and foreign funding costs to rise, while reliance on the central bank for FX liquidity will remain high in 2021
• Experts expect further rise in Covid cases in the coming weeks to 50k-60k daily before starting to decline. Nationwide weekend lockdowns will be in effect during Ramadan (starts 13 April).
  • Official says if conditions don't improve, full weekend lockdowns could be implemented across all 81 states