Turkey postponed fiscal reforms on Wednesday, giving the government leeway to spend ahead of an election due next year and sparking warnings from rating agencies that deficit reduction plans may get diluted.
Investors had expected Ankara to introduce the reforms -- which set clearly defined medium-term targets for growth and debt reduction -- in time for the 2011 budget after it chose not to enter a new standby loan agreement with the International Monetary Fund earlier this year. But Industry Minister Nihat Ergun was quoted by the state-run Anatolian news agency as saying the targets would not form the basis for next year's budget, though they would be used for 2012.
Analysts and all three main rating agencies -- which had suggested the reforms would underpin the country's efforts to attain investment grade debt status -- expressed unease at the comments, which sent local markets lower.
For more: UPDATE 4-Turkey delays fiscal reforms, rating agencies wary By Reuters
No comments:
Post a Comment