ANKARA - Japan Credit Rating Agency (JCR) revised outlook on Turkey from negative to stable.
Releasing a statement on Tuesday, JCR has removed Credit Monitor of the ratings of B+ on the bonds of Turkey.
The statement said that as the U.S. attack on Iraq finished in a short time, concern has disappeared over adverse influences of the war on the Turkish economy.
It noted that the Turkish economy has been in good shape, supported by the rise in exports mainly due to the sharp depreciation of the Turkish lira (TL) since 2001 and the recovery of domestic demand; primarily personal consumption and private capital investment as well as stock investment.
''The government projection of a 5 percent GDP growth for 2003 will be achievable, provided the current trends continue,'' it said and stated, ''as inflation continues to fall, CPI will probably decrease to a level close to the government's year-end target of 20 percent.''
Recalling that the International Monetary Fund (IMF) approved the disbursement of the 5th tranche on August 1 this year based on the 5th review made in July, the statement said, ''in view of the above-mentioned situation, JCR has decided to remove Credit Monitor from the ratings on the yen denominated bonds issued by the government of Turkey, (it placed them under Credit Monitor on April 11, 2003), and to simultaneously revise the rating outlook from negative to stable.''
Yoshihiko Tamura, the Turkey analyst of JCR, who made a statement about the report on Turkey in August said that they could put Turkey into positive monitoring by excluding it from negative monitoring due to positive developments in Turkish economy.
(EÖ-AÖ) 02.09.2003