Battered by the Lira, Turkish Firms Face Catch-22 on Rates
- Rate hike may calm lira, contain cost of dollar debt: Nomura
- Local-currency borrowing costs have doubled since April
This article is for subscribers only.
An interest rate hike by Turkey’s central bank on Thursday might just be the lesser of two evils for the country’s beleaguered companies.
On the one hand, a steep rate increase could stem the slide in the lira that has boosted dollar-debt costs by more than 40 percent this year. On the other, pausing would spare the already bruised balance sheets of companies, which have had to contend with a near doubling in local borrowing costs.