Economics
Turkish Opposition Warns Borrowing Spree Abroad May Backfire
- Pressure on yields will backfire, opposition spokesman says
- Treasury has locked in more than half of its 2019 FX needs
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The Turkish government’s strategy of heavy borrowing abroad this early in the year risks triggering a spike in lira bond yields after municipal elections in March, the nation’s main opposition party said.
“The government is pressuring exchange rates and yields as it borrows heavily in foreign currencies,” Faik Oztrak, spokesman for the Republican People’s Party, or CHP, said in an interview in Istanbul. “This will create serious troubles after the vote, when they will have to resort to heavy domestic borrowing. That would send yields higher.”