VIEW: Monday saw Bank of America Research....>

TURKEY: VIEW: Monday saw Bank of America Research note that "Turkey's Covid-19

lockdowns have weighed on economic activity. The global fight against the virus

has muted Turkey's geopolitical risks. Monetary, credit, and fiscal expansion

continues to limit the downside in activity. The CBT's bond purchases have

reached TRY63bn (TRY7bn to go). Credit growth is tracking 15% yoy, driven by

corporate and consumer loans while credit card activity has decelerated sharply.

The CBT is likely to ease by a further 50bp on 21 May (and another 50bp at the

meeting after). Turkey's epidemiological curve has flattened thanks to the

government's efforts to contain the spread and the country's robust health

infrastructure. Hence, lockdown measures are being eased gradually. Locals have

welcomed the government's success in its health response relative to peers.

International investors are light on Turkish assets and the focus is on recent

CBT and regulatory actions. Locals find sovereign and corporate bonds

attractive."