Erdogan Cuts Wrong Deficit for Bondholders Watching Imports: Turkey Credit
By Benjamin Harvey - Mar 6, 2012 5:00 PM ET
Turkey’s ballooning trade deficit is causing the longest slump in the country’s bonds this year even as the government cuts the budget deficit to half the European Union’s target.
The Treasury, which plans to lower its budget shortfall to 1.5 percent of gross domestic product this year, may report a surplus for a second month on March 9, based on the Treasury’s projections of spending and borrowing. The surge in oil prices to a three-year high threatens to ramp up spending on imports and worsen the current account balance from a record 10 percent of GDP, according to analysts at Credit Agricole SA (ACA), Toronto- Dominion Bank (TD) and BGC Partners. (BGCP)
More:Erdogan Cuts Wrong Deficit for Bondholders Watching Imports: Turkey Credit - Bloomberg
