Tuesday, 21 August 2018

What Is Going On in Turkey?


Image credit

A "massively oversimplified explanation",

  • Turkey wanted to spark growth and liberalized bank lending rules.
  • Banks and local businesses borrowed a lot of foreign denominated debt.
  • A boom ensued.
  • A bust is now ensuing.

And a detailed account (of a huge and complicated balance sheet mismatch by Turkish banks, with short term liabilities financed by long-term assets).

No comments:

Post a Comment