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Upgrade of Turkey’s Fitch Ratings to attract $ 32 bln in country

Business Materials 7 November 2012 19:10 (UTC +04:00)

Azerbaijan, Baku, Nov. 7 / Trend A.Tagiyeva /

Upgrade of Turkey's credit rating by Fitch international rating agency will contribute to attracting foreign investments in the amount of $ 32 billion in the country within one to two years, the Finance Minister Mehmet Simsek said on Wednesday, Sabah newspaper reported.

"Following the upgrade of Turkey's rating the flow of credit and portfolio investment to the country will increase. Within the next one or two years, we expect the inflow of about $32 billion of foreign investment in the country," Simsek said.

According to the minister, since 2002, the Fitch agency increased rating of Turkey by five times, even in spite of the global economic crisis.

Simsek said the upgrade of rating demonstrates that Turkey is very conducive for entrepreneurship.

Earlier, the international rating agency Fitch Ratings upgraded Turkey's sovereign credit rating by one notch - from "BB +" to "BBB" , defining the credit outlook for the country as stable.

The agency also upgraded the long-term sovereign credit rating of Turkey from "BBB" to "BBB +".

The rating upgrade of Turkey is due to the resistance to external shocks, the Fitch agency said, basing its forecast improvements on the macro-financial risks in the near future, the reduction of public debt and a strong banking system.

The upgrade of Turkey's credit rating by Fitch agency lowered the interest rate on the bond market from 6.98 percent to 6.80 percent.One U.S. dollar on the interbank foreign exchange market fell to 1.7816 Turkish liras, while euro fell to 2.2795 Turkish liras.

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