Lowest Savings After Ireland Means No Upgrades: Turkey Credit
By Benjamin Harvey - Feb 24, 2012 4:24 AM ET
Turkey, the fastest growing economy after China, is being penalized in the credit markets for its failure to promote consumer savings.
While Turkey’s economy has grown at an average pace of 5.9 percent since 2002 and its bonds are showing the fastest recovery among emerging markets from last year’s rout, its credit ratings are stuck at the same level as Serbia and Guatemala, whose economies are about a twentieth its size. That’s costing the country about $8 million more for every $1 billion it borrows on international markets than Russia, where the bond market is half the size of Turkey’s, according to JPMorgan Chase & Co. EMBI indexes.
More:Lowest Savings After Ireland Means No Upgrades: Turkey Credit - Bloomberg
