Page 48 - TURKRptSep20

levels in 10 years) and lira weakness,” it added, concluding: “Although the sovereign can keep flooding the reserves via swap lines with other central banks and a banking regulation that obligates banks to increase reserves, there are no clues when the country's reserves will run out​.”
Turkey’s credit default swaps (CDS) ​closed​ July at around 550​. Pakistan was above Turkey at around 580 while bankrupted Venezuela kept its unrivalled position with something over 70,000, followed by bankrupted Argentina with something over 6,000.
Turkey’s closest challengers were Ukraine at around 530 and Egypt with towards 430.
Turkish corporate bonds worth $2.2bn were trading at distressed levels, with yields on debt sold by leading Turkish private lenders Isbank, Garanti BBVA and Akbank now more than 1,000bp above US Treasuries, Bloomberg reported​ on August 12 in a story entitled “Turkish Bank Bonds Trading in Distress Defy Erdogan’s Optimism”.
When securities of company debt with a spread above 800bp spread are added, the figure rises to $5.3bn, Bloomberg noted.
48​ TURKEY Country Report​ September 2020 ​ ​www.intellinews.com