Turkey may be forced into a new loan programme with the International Monetary Fund in 2021 after thirteen years plotting its own course for the economy, said local economists Güldem Atabay and Atilla Yeşilada.
The Turkish central bank has set the foundations for a possible reversal in Turkey’s financial fortunes after a tumultuous 2020, which saw the lira slump to successive record lows against the dollar and bad debt surge. But the country now needs a wholesale change in its economic management that the government will not be able to accomplish alone, Atabay and Yeşilada said.
The core of Turkey’s problems lies in lack of confidence in the government among ordinary Turks, who continue to hoard foreign currency, they said.
Atabay and Yeşilada made the comments in a discussion on the economy with journalist and analyst Mark Bentley for podcast ‘Front Seat’.