Fitch Says Turkey Will `Tarnish' Credibility With Delay to New Budget Rule
Turkey would “somewhat tarnish its fiscal credibility” by delaying a decision to introduce new limits on budget spending and failing to implement the steps, Fitch Ratings Ltd. said.
The delay and weakening of the so-called fiscal rule by the government suggests it may run a larger budget deficit next year than planned, Fitch analyst Edward Parker said in an e-mailed response to questions today.
Fitch hasn’t made a linkage between legislating the rule and potential ratings actions, Parker said.
“Fiscal outcomes are more important than fiscal rules,” he said. “The path of the budget deficit and goverment debt-to- GDP ratio are likely to be important drivers of future rating actions. The passing or non-passing of rules alone will not.”
To contact the reporter on this story: Seda Sezer in Istanbul at email@example.com