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May 4, 2018 www.intellinews.com I Page 32
bne:Credit S&P cuts overheating
Turkey deeper into junk on risk of hard landing
Turkey’s credit rating was cut deeper into junk by S&P Global Ratings on May 1 as the rating agency responded to the risk of its overheating economy experiencing a hard landing.
S&P highlighted the country’s deteriorating inflation outlook and the long-term depreciation and volatility of the Turkish lira (TRY) as well as signs of corporate debt distress.
S&P reduced Turkey’s foreign currency rating from ‘BB/B’ to ‘BB- /B’, on par with Brazil and Vietnam. The local currency sovereign rating was lowered from 'BB+/B' to 'BB/B', while the outlook
was given as stable. The rating agency's move was not part of
its regularly scheduled review programme for Turkey. That will heighten concerns about the state of the country's economy, with investors still dumping the TRY despite a rate hike.
Macedonian public debt totaled €5.085bn at the end of the first quarter of 2018, compared to 4.787bn at end-2017, finance ministry data showed on April 30.
The public debt comprised 47.2% of the country’s GDP at end of March, compared to 47.6% of GDP at the end of last year.
External debt accounted for the bulk, €3.479bn, at the end of March, up from €3.187bn at the end of 2017.
Domestic debt totaled €1.605bn in the period under review, slightly up from €1.599bn at end of 2017.
Homebuyers in Iran’s capital could receive a boost in a proposal from the Roads and Urban Development Minister, Abbas Akhundi, who on April 28 said the mortgage ceiling for homes in Tehran could increase to IRR2bn (€39,215), Saat24 reported on April 28.
Mortgages in Iran are offered by a few banks but are fixed and related to either a home renovation or the purchase of a new prop- erty. According to the current rules, people looking to purchase a mortgage from Bank Maskan can receive a maximum IRR800mn (€15,700) loan for a home in Tehran. Outside of Tehran, the maxi- mum loan offered in other cities tops out at IRR600mn (€11,674). For villages, the figure is IRR400mn (€8,400).
“The proposal of the Ministry of Roads and Urban Renovation has been sent to the Money and Credit Council to propose the increase in the mortgage ceiling,” Akhundi said.
Macedonia’s Q1 public debt up 6.2% from end-2017
Move to push up mortgage ceiling
to IRR2bn for Tehran residents