Page 27 - bne_newspaper_August_10_2018

Weekly Lists
August 10, 2018 www.intellinews.com I Page 27
bne:Credit Turkish banks’ US
dollar bonds sink, Halkbank’s paper hits record low
Fitch raised Czech rating to ‘AA-‘
Turkish banks’ USD-denominated Eurobonds fell across the curve on August 7 amid fears Turkey is a hair’s breadth away from plunging into an unmistakable currency-and-debt crisis.
State-owned Halkbank’s 2020 Eurobond lost 3.3 cents to a record low of 78.7 cents while Yapi Kredi Bankasi’s 2026 Eurobond fell 1.1 cent to 87.386 cents, according to data relayed by Reuters.
Garanti’s 2022 paper was down 1.04 cents to the lowest level since February 2014 while Akbank’s 2025 bond fell 0.68 cents to its lowest point since June 20.
The latest nosedive of the Turkish lira took it to a new all-time low against the dollar of 5.4187 late on August 6.
Fitch Ratings raised the Czech Republic’s sovereign rating to ‘AA-’ from ‘A+’ with a stable outlook on August 3.
The rating agency said Czechia has strong public finances due to increased revenue collection and low government debt.
“General fiscal prudence and government budget surpluses in recent years have lowered government debt/GDP to 34.7% of GDP in 2017, from a peak of 44.9% in 2013, well below the current 'AA' peer median of 41.8%. General government surpluses are forecast throughout the forecast period with only a moderate decline to 0.8% of GDP in 2020 from 1.5% in 2018,” the agency said.
Both cyclical trend and careful fiscal policy contributed to sound public finance.
Mongolia’s recent macroeconomic performance has been strong with key targets met and growth reviving, said an International Monetary Fund official after a mission from the Fund carried out its fifth review of Mongolia's Extended Fund Facility (EFF). However, Geoff Gottlieb, who led the mission to Mongolia in late July and early August, said on August 7 that while progress has been made, “significant vulnerabilities remain” in Mongolia.
As the once booming Mongolian economy foundered amid a drop in commodities prices, the IMF approved a three-year extended ar- rangement for the country worth a total of around $434.3mn in May 2017. The facility was part of a larger package amounting to around $5.5bn that included support from the Asian Development Bank, the World Bank, Japan, Korea and China.
Mongolian growth reviving but vulnerabilities remain IMF says