Lagarde warns Turkey has ‘teeny bit’ of fiscal space

Lagarde warns Turkey has ‘teeny bit’ of fiscal space

The head of International Monetary Fund (IMF), Christine Lagarde, said the fund would be willing to help Turkey if its finances continue to deteriorate, but President Recep Tayyip Erdogan does not appear eager to ask for assistance.

Speaking at the American Enterprise Institute in Washington on the state of the world economy, Lagarde said the country has tiny fiscal space and massive private sector debt, inflation and a dire currency situation.

“I hope the authorities can actually handle the situation. They have a teeny bit of fiscal space, the have a private sector that is massively indebted, they have inflation running high, they have a currency situation which is also pretty dire and I don’t think that President Erdogan would actually pick up the phone to ask me whether the IMF can come and help," she said. 

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