S&P: Early elections may disrupt political stability

The current uncertainty slows down and damages economic growth and investments

Baku. 19 June. REPORT.AZ/ U.S.-based international credit rating agency Standard & Poor's (S&P) said yesterday that, the political uncertainty in Turkey will not end until the end of the year if early elections are held.

Report informs, it may also postpone further investment and hinder potential growth.

"As we understand it, if a government is not formed within 45 days of the speaker's appointment, early elections would likely be held in November this year. Under such scenario, we believe political uncertainty would remain heightened until the end of the year, which could potentially hamper growth if business investments are postponed. 

Further volatility of the Turkish lira, which has already depreciated 2.8 percent against the dollar since the elections, could have implications for consumer confidence and inflation," S&P said in a statement.According to analytical group of REPORT, if early elections are held lira will fall to 3 lira TRY / USD and the BIST-100 decline from 80 000 to 70 000 to the level of (-15%).

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