Turkish Corporate Debt Rallies as Lira Rebound Adds Funding Room
- Cost of borrowing in dollars falls to the lowest in five years
- Lenders raised more than $2 billion since central bank revamp
The new economic landscape may allow companies to move past a focus on debt reduction that had been dominant since a currency crash in August 2018.
Photographer: Kerem Uzel/BloombergThis article is for subscribers only.
The resurgent lira is giving Turkey’s debt-laden companies a lifeline.
The best rally among emerging-market currencies and a retreat in the nation’s default risk have helped cut the dollar cost of borrowing to the lowest since July 2016 for Turkish corporate issuers. Looking into an abyss only a few months ago, they are now on track to roll over $6.7 billion worth of foreign bonds maturing this year, helped by a change in economic policy.