UAE banks face multiple challenges

UAE banks face multiple challenges

**Written and disseminated among select contacts on April 15**

Substantial government stimulus measures will help the UAE’s banking sector navigate the impact of the coronavirus crisis, but doubts remain over whether they will effectively translate into swift economic recovery once restrictions are lifted. Lenders certainly have the ability to lend – but whether they have the willingness to lend is the key consideration.

Rachna Uppal | Senior Analyst Business & Finance | r.uppal@castlereagh.net

Turkey’s economic woes heightened by coronavirus challenges

Turkey’s economic woes heightened by coronavirus challenges

Local and international responses to COVID-19 have impacted key sectors of Turkey’s economy, such as manufacturing, retail and tourism. While the global fall in oil prices will ameliorate some of the country’s current account stress, overall the economy is likely to shrink this year for the first time since 2009. Currency and financial sector weaknesses increase the risk of a protracted downturn.

Turkey’s banks take the strain

Turkey’s banks take the strain

Turkey’s banks entered the pandemic with some concerning underlying conditions and may need some significant financial ventilation if they are to come through it in good health. Foreign currency debt, depletion of foreign exchange reserves and political interference has added risk, with lenders likely to see increasing stress on their balance sheets in the months ahead. The picture darkens further the longer the health crisis continues.