Turkey’s banks, renowned for their resilience as borrowers to market shocks, risk paying wider margins when they refinance debt later this year, according to some bankers. The dismal outlook follows Moody’s recent downgrade of Turkey’s sovereign debt and 18 of its banks.
Moody’s downgraded the banks by one notch on Tuesday, while maintaining their negative outlook. The move is likely to create yet further contention between lenders and the banks when they tap the international loan market later this year to refinance existing debt.
The move included some of the country’s