Lira Descent Risks Turkish Growth as $89 Billion Debt Bill Looms
This article is for subscribers only.
The lira’s worst slump since 2008 is driving up the debt-servicing costs of Turkish companies, complicating government efforts to spur the economy before general elections.
The currency’s 9.9 percent retreat against the dollar since Jan. 1 was bigger than any analyst surveyed by Bloomberg was projecting at the start of the year. Non-financial companies with $89 billion of debt coming due within the next 12 months have little choice than to curtail investments to service the liabilities, according to Renaissance Capital and GlobalSource Partners Inc.