Key View

• The sharp depreciation and volatility registered for the Turkish lira over August 2018 has led us to revise downwards our near-term solar and wind capacity forecasts, as we expect fewer projects to gain financing in the near-term.
• We maintain that renewable energy will remain an attractive investment in Turkey over the longer term, as

Key View:

- Significant downside risk has emerged to our construction industry forecasts, as the lira's depreciation will drag on activity in the private non-residential building sector. Input costs are rising dramatically and over the longer term, servicing costs on already high levels of debt may become unaffordable.

- Infrastructure projects

The Turkish lira has pared back some of its losses over the past two days ( see chart below). The unit has appreciated by around 12.0% since August 14. The stabilisation occurred against the backdrop of the central bank promising to "take all necessary measures" to avert a currency crisis, and rumors that Turkey was considering releasing American

The multiple risks to Turkish banks that led to widespread rating downgrades in July continue to threaten their credit profiles, Fitch Ratings says in a new report. Depreciation of the Turkish lira, higher interest rates and slowing economic growth pose significant risks to banks' performance, asset quality, capitalisation, funding and liquidity

The recent volatility of the Turkish lira has limited immediate negative impact on the majority of rated non-bank financial institutions (NBFIs). However, the potential effect on asset quality, particularly for leasing companies, could be more pronounced in the medium term as economic confidence is impacted by the currency weakness and rising

BMI View: Turkey's relations with Qatar will continue to deepen over the years ahead, as the two countries are drawn closer together by aligning foreign and security policies, and opportunities for trade and investment. The Erdogan administration will look to maintain cordial ties with other GCC authorities in order to facilitate exports to the

The Turkish government's counter cyclical fiscal policy will lead to a deteriorating fiscal position in the years ahead. While the public debt will remain low relative to emerging market averages, growing contingent liabilities - from several off-balance sheet stimulus measures - could pose upside risks to government debt levels if they are