Turkey to establish national credit ratings agency

DAILY SABAH WITH AA
ISTANBUL
Published 28.09.2017 19:05

Since the ever-growing Turkish economy cannot escape being the target of various credit rating agencies, the government has made an important decision. In order to provide data infrastructure for economic ratings, it will first establish a Central Risk Registration Office and then start to establish a national rating agency.According to the information compiled from the Medium-Term Program (MTP) to be pursued from 2018 to 2020, measures will be taken to limit the systemic risks in the economy during the program's practice period.

The Financial Stability Committee will continue to work to reduce such risks, while macroeconomic measures will be put in place to reduce and manage the exchange risk in the real sector. A real sector systemic risk data follow-up model will be established to monitor the sensitivity of the real sector to foreign exchange and the exchange risk in a more comprehensive and reasonable frequency range.The "receivable insurance" practice will be expanded to compensate for losses stemming from the nonpayment of commercial receivables.

The Central Risk Registration Agency will be established to provide the data infrastructure for the ratings. Following this, studies will be initiated to create a national rating agency.

Within the scope of measures to deepen the financial system, the Real Estate Bank and the Development Bank will be restructured. The legal infrastructure will be prepared for limited and transitory companies and trust funds. The domestic and national payment system will be expanded.

Legislative work on the functioning of specialized commodity stock exchanges will be completed. Organized markets in which commodities such as metals are physically delivered at the end of maturity will be created.

An awareness-raising program will be prepared to improve household awareness of borrowing and long-term savings. Companies will be encouraged to evaluate their savings in capital markets.In order to deepen interest-free financial markets, the Interest-Free Finance Law will be introduced. Within this scope, the Interest-Free Financial Standards Institution will be established and institutional governance principles will be determined in accordance with interest-free finance principles.

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