Turkish Prime Minister Recep Tayyip Erdogan’s stand-off with
protesters is threatening to send investor perceptions of the nation’s credit
risk above Russia ’s
for the first time in seven months. The cost to protect against losses in
Turkish debt using credit-default swaps rose 41 basis points since May 31, when
anti-government demonstrations erupted, to 172 yesterday, according to data
compiled by Bloomberg. That’s narrowed the gap with higher-rated Russia
to 10 basis points from 25 at the end of last month, the data show.
The unrest is threatening to drive away investors, who had
been lured to Turkey
by higher yields, falling debt levels and credit-rating upgrades. ….“Many preferred
Turkey to Russia on the view that it had become
politically stable, transparent and democratic, contrasting with Putin’s Russia .”
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