Sell Turkey on debt, current account, UBS says
Investors should short Turkey because of high levels of corporate debt, short-term borrowing by banks and problems with key trading partners, Swiss bank UBS AG said, according to Asia Unhedged.
The current account deficit is becoming unsustainable at about 5 percent of economic output, fueled by credit growth. These weaknesses show losses for the lira are likely to continue, UBS said in a report, according to the publication.
Turkey has sourced much of its financing from the Gulf States, including Saudi Arabia, but its support for the Muslim Brotherhood and cosying up to Iran is affecting relations, UBS said.