Turkish C.B. Head Warns Against Global Slowdown

KAYSERI - Head of the Turkish Central Bank (C.B.) warned Thursday there were signals that recent fluctuations in global financial markets had started to affect real sector (in Turkey) as well, citing a prospective "global slowdown" in growth.
"The problem we had to deal with until now was liquidity but from now on we will have to deal with the problem of bankruptcy. If the loans are not going to be repaid then it means interest rates are losing their functions," Durmus Yilmaz told a meeting on monetary policies in Kayseri.
"There are increasing risks and uncertainty in international markets. And without doubt all countries will face a slowdown for a certain period and in varying intensity," Yilmaz said.
(YMB-ULG)