Moody’s: Kurdish initiative positive for Turkey’s credit rating

Credit rating agency Moody’s has made a declaration saying “the settlement process for Turkey’s Kurdish issue is a positive development for the country’s credit rating”.

Moody’s, which currently rates Turkey at Ba1 with a positive outlook, said the government’s agreement to form a parliamentary investigative commission to evaluate the process was a “visible and credit-positive step” in its progress toward establishing peace.

It was also mentioned in the same statement that the 30-year armed conflict between the violent separatist group of the Kurdistan Workers’ Party (PKK) and the Turkish state had been a longstanding source of political uncertainty constraining Turkey’s creditworthiness.

Moreover the agency commented that the prospect of establishing peace in the country would boost investor confidence and improve southeastern Turkey’s attractiveness as a destination for foreign direct investment, which would in return deliver economic benefits and reduce Turkey’s external vulnerabilities.

It is noteworthy to remind that the military conflict has taken more than 40,000 lives since its outbreak in 1984 and also caused international investors to refrain from considering investments in Turkey’s southeastern region in specific.

11.04.2013
SOURCE: MEDIA & BTT