rescue loan: Financial markets have grown increasingly concerned that Turkey is in danger of adding its name to the list of countries seeking a rescue loan from the International Monetary Fund, according to The Guardian. Argentina agreed a loan earlier in the summer with the IMF and only last month called on the Washington-based lender to release the funds earlier to to ease concerns that the country would not be able to meet its debt obligations over the next year. Ignoring calls for restraint from President Recep Tayyip Erdo an, the bank raised its main short-term rate from 17.5% following weeks of pressure from international investors. South Africa, Indonesia and Mexico are also among a group of emerging market economies that have seen their currencies tumble as investors desert countries that have grown quickly using large amounts of borrowed funds. Inflation also soared this month to a 15-year high of almost 18%. The currency has plunged in recent months and even after Thursday's rise was down almost 39% against the dollar this year. The Turkish lira began to recover shortly after the rate hike, strengthening by 3% to 6.16 against the dollar.
(news.financializer.com). As
reported in the news.
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