“This plan is clearly a new potential liability for the country’s balance sheet. However, if this approach works, the liability may not arise,” Gamble told Reuters.
Gamble stated that Turkey’s public finance is stronger than other emerging markets such as Brazil and South Africa, which have BB- credit ratings, and that the debt/GDP ratio is expected to close this year with 47 percent, while in countries with a BB- credit rating, this rate is 57 percent on average. He emphasized that 71 percent in South Africa and 81 percent in Brazil.
“We need to assess the situation and understand the impact of this new interest rate instrument,” Gamble said. There could be a situation,” he said.