Istanbul election rerun ‘prolongs recession and erodes credibility’
The Turkish lira this week tumbled to levels it had not seen since last October’s economic crisis after Turkey’s electoral commission (YSK) annulled the results of Istanbul’s municipal elections that had been won by the opposition. Investors said they are concerned that economic reforms will be put on hold and are worried that higher interest rates will prolong the country’s recession.
The election is set to be rerun on June 23.
The annulment led the lira to weaken from TL5.96 to TL6.25 to the dollar. Turkey’s CDS spread widened 25bp to 465bp the day after the announcement.Recep Tayyip Erdoğan’s AK Party achieved 51% of the national vote, but lost ...