April 15, 2019 / 1:33 PM / 11 days ago

Turkey reform package insufficient to restore confidence in lira - S&P Global

LONDON, April 15 (Reuters) - Turkey’s reform package laid out last week won’t be enough to restore Turkish households’ and foreign investors’ confidence in the lira, one of S&P Global’s top sovereign analysts said on Monday.

Turkey pledged last week to inject almost $5 billion into its state-owned banks to help them cope with an expected rise in defaults following the country’s slump into recession, but the plan has been criticised for being light on detail.

“The big question for foreign investors and for Turkish households is whether the lira is still an investable currency,” S&P’s top EMEA sovereign analyst, Frank Gill, said. “In our opinion the reform package did not answer that question.”

Earlier this month S&P had said Turkey’s B+ foreign currency and BB- domestic currency ratings were not currently at risk of a downgrade though a further fall in lira would be “very, very bad news” for the country’s companies and banks. (Reporting by Marc Jones; editing by Sujata Rao)

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