The nightmare of a banking crisis in Turkey & the growth rates (VIDEO)

Problems due to rising inflation

despoinacity 4 CRISIS, Turkey

Economist Marios Zachariadis spoke about the ongoing crisis in the Turkish economy on his show Sigma Mesimeri kai Kati. He first referred to the problem caused by rising inflation. However, he noted that the devaluation policy pursued by Erdogan is aimed at increasing competitiveness and reducing the trade deficit.

"This devaluation policy has resulted in high growth rates in Turkey for the third quarter. It was the second highest rate in the OSCE. There is also a closure of the large trade deficit that Turkey had. These are the positives. "But the negative effects of inflation are affecting consumers and lenders, especially banks."

In this context, he explained that any lender loses when there is high inflation and the largest lender in the modern world is the banks. "This is how Turkey is threatened by a banking crisis. "It's not threatened with bankruptcy and a fiscal crisis, but a banking crisis."

"If the pace of growth continues, this is a bet for Erdogan on his political survival. "He is already making some moves by raising the minimum wage by 50% to contain the effects of his voters," he added.

Among other things, he said that in such a crisis, only with the intervention of the IMF, if necessary, the banks will be saved.

"Until recently, Turkey was considered a fast-growing economy. But Erdogan's policies have created a great deal of uncertainty, both in the short and long term.

He also pointed out that the Turkish bank announced that it would be the last reduction in interest rates, but this can not be believed by foreign investors and states, as Erdogan is doing what he can.