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Yilmaz Sees CDS Spreads Tightening Further

TURKEY
  • Following yesterday’s rate hike and the pledge to tighten credit conditions, the CBRT have confirmed that KKM FX-protected savings accounts will be imposed with a 15% reserve requirement ratio – tightening liquidity in local markets.
  • Following comments from finance minister Simsek yesterday, authorities have announced further support for export-oriented firms, with the CBRT increasing the daily limits of re-discount loans to exports by 5 times (from TRY 300mln to TRY1.5bln.
  • Vice President Yilmaz is set to meet with business leaders later today, ahead of which he stated the government’s mid-term economic program – set to be announced in September - will reduce uncertainty across Turkey, adding that he expects that Turkish CDS spreads will continue to decline.
  • There are no key data due from Turkey Friday. We will send our CBRT decision review including summary of sell-side views later today.

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