Turkey's ruling party offical hits hard at rating agencies

ANKARA - Anatolia News Agency

Gedikli says rating agencies need to upgrade Turkey to regain their reputation.

The debt crisis is creating new opportunities for the Turkish economy as safe havens for money are being sought, according to Bülent Gedikli, deputy president of the ruling Justice and Development Party.

Turkey, and Turkish banks in particular, are among the safest places for cash inflows, Gedikli said in a recent interview with Anatolia news agency.

“As this crisis will last a long time, short-term coming and going of cash is out of consideration,” he said. “Those who come to Turkey make long-term plans.”

“Some circles refuse to see” the new opportunities, the deputy president said, calling them “the interest rate lobby,” but without giving any specific company or institution name.

‘Euro trap’

However, Gedikli said the grades from the major credit rating companies are triggering large discussions as their criteria are not transparent. These bodies have lost much reliability since 2008, he added. “To regain their reputation they should upgrade Turkey to ‘investable’ status. … They have no other way, and they know it. For example Japan Credit Rating Agency (JCR) has upgraded its outlook on Turkey to positive. This means that [Turkey’s position] is obvious.”

The European countries are caught in a “euro trap,” according to the party official, who argued that the members of the 17-nation bloc have no chance to devaluate their currency.

This makes the eurozone countries lose their power to compete as Turkish goods remain cheap, he said.