Turkey could dust off a range of strategies to defend its sliding lira after President Recep Tayyip Erdogan abruptly replaced the central bank governor – including limits on currency swaps, interventions by state banks and even capital controls.


Stocks slid and the Turkish lira tumbled towards a record low against the dollar on Monday after President Tayyip Erdogan shocked investors by replacing Turkey’s hawkish central bank governor with a critic of high interest rates.

A man takes a photograph from the bank of the Bosphorus on a snowy day in Istanbul on Tuesday. [Erdem/Sahin/EPA]

Turkey’s lira slid 15% to near its all-time low on Monday after President Tayyip Erdogan’s shock weekend decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes and undermined the bank’s credibility. The appointment of Sahap Kavcioglu, a former banker and ruling party lawmaker, in the early hours […]


Greece sealed its complete return to the bond markets on Wednesday with the very successful issue of a new 30-year bond, which has completed the Greek yield curve and confirmed the country is back to normalcy.


Greece is proceeding to the issue of a new 30-year bond, probably on Wednesday, announcing on Tuesday that it has commissioned the services of five banks to that effect.


The recent unrest in global bond markets is certainly affecting the plans of Greece’s Public Debt Management Agency (PDMA), but isn’t generating any worries for now.


International rating agencies may adjust their forecasts on Greece’s gross domestic product soon, but for now they are happy with the estimates they have already made about 2020 as a whole.


Bad loans are not the only challenges Greek banks are facing, according to Fitch Ratings. Securitizations will mean banks will have to issue bonds while operating profits will stay weak, Pau Labro, director of Financial Institutions at Fitch, tells Kathimerini.


The European Central Bank may be one of the strongest allies of Greece in this crisis, but the anticipated conclusion of the PEPP program is not expected to put Greek bonds at risk, as until then the sustainability of the country’s public finances will have improved further, Fitch Ratings analysts told Kathimerini.


The Greek debt remains sustainable despite the pandemic, thanks to the country’s weapons, but it is unlikely the country’s credit rating will investment grade for another couple of years, Fitch Ratings estimates.