Aljazeera
Sept. 14, 2020
Moody's warns of possible balance-of-payments crisis as it cuts Turkey
debt rating deeper into junk.
by Sydney Maki, Netty Ismail and Cagan Koc Bloomberg
Turkey had its debt rating cut deeper into junk by Moody's Investors
Service, which warned of a possible balance-of-payments crisis in
assigning the lowest grade it's ever given to the country.
The sovereign credit rating was cut to B2, five levels below
investment grade and on par with Egypt, Jamaica and Rwanda. The
company kept a negative outlook on the rating, saying fiscal metrics
could deteriorate faster than currently expected.
"Turkey's external vulnerabilities are increasingly likely to
crystallize in a balance-of-payments crisis," London-based Moody's
analysts Sarah Carlson and Yves Lemay said in a report Friday.
Moody's, which last downgraded Turkey more than a year ago, now ranks
it one level lower than S&P Global Ratings and two notches below Fitch
Ratings. Turkey held an investment-grade score from two of the three
major credit assessors prior to the July 2016 coup attempt against
Presidet Recep Tayyip Erdogan.
Turkey's standing with investors has suffered as Erdogan pursued an
approach that prioritized growth above all else. The reliance on
credit stimulus has exposed the vulnerabilities of the $750 billion
economy and came at the expense of inflation and currency instability.
Turkey's credit-default swaps, local-currency debt and the lira have
been the worst performers in emerging markets this quarter. The nation
has spent its foreign-exchange reserves faster than any other major
developing economy this year, with state-run lenders intervening in
the market to support the lira as it slid to successive all-time lows.
The government's dollar bonds have returned 0.5% since end-December,
trailing the 2.4% gain across emerging-market sovereign debt,
according to Bloomberg Barclays indexes.
But authorities have shown little sign of backing away from the
unorthodox policies that are compounding an outflow of foreign
capital. Erdogan declared Turkey to be under "economic attack"
following Fitch's decision last month to revise the outlook to
negative.
Turkey's economy is on the rise and not dipping at the moment, but
"they are downgrading our ratings again," Erdogan said in Istanbul on
Saturday after the Moody's announcement. "Do what you want to do, your
ratings are of no importance."
Moody's rationale for its decision included concern about the level of
Turkey's foreign-currency reserves, growing dollarization and the
erosion of fiscal buffers, once a source of strength.
The rating company also warned that Turkey's return to growth after
this year's shock won't be enough "to offset the impact on the upward
debt trajectory of primary deficits of around 2% and an increasing
interest burden."
Other highlights from the report:
The government debt burden is forecast to increase from 32.5% of
gross domestic product in 2019 to 42.9% in 2020 and then above 46% of
GDP in the coming years
Reserves excluding gold have fallen more than 40% this year to
$44.9 billion as of Sept. 4
If lenders' required reserves for lira and foreign-exchange
liabilities are netted out, net reserves "are now close to zero"
Rising geopolitical risks "could be an accelerant for any crisis"
While Turkey's recent gas finds may provide some relief to the
current account balance, Moody's said they are unlikely to come on
stream quickly enough to ease threats to Turkey's external accounts
"As the risks to Turkey's credit profile increase, the country's
institutions appear to be unwilling or unable to effectively address
these challenges," Moody's said.
Source: Bloomberberg
Month: September 2020
Armenian exports of greenhouse agro products grow
09:40,
YEREVAN, SEPTEMBER 13, ARMENPRESS. Exports of several products from Armenia grew despite the coronavirus crisis that delivered a blow to virtually all sectors of the economy since the outbreak began.
Exports of the strawberry-blackberry-blackcurrant product group grew 166% in January-July 2020, according to PM Nikol Pashinyan.
“On the background of the COVID-19-related economic crisis we have good news,” he said on social media.
He said a total of 5,5 million dollar worth of berries were exported in the timeframe.
“The important nuance is that the exported products are mostly produced in greenhouses. On one hand we deal with the development of greenhouses, on the other hand the harvest produced here doesn’t depend on weather and as I’ve had the chance to mention the greenhouse owners don’t wait to see how much harvest they will have, they rather plan how much they need and produce exactly that much,” Pashinyan said.
He also reported export growth in other agricultural products, such as 62 growth (total 3,2 million dollar worth) of mushrooms-pumpkin-spinach product group.
In other areas, the exports of flowers also grew by 16,9% with a total of 3,9 million dollar worth of products being exported.
He said that tomatoes remain the most exportable greenhouse product, with a total of 23,5 million dollar worth of tomatoes being exported abroad in between January-July (18,5% growth).
Editing and Translating by Stepan Kocharyan
Opposition Prosperous Armenia opts out from confirmation vote of high court justices
10:32,
YEREVAN, SEPTEMBER 14, ARMENPRESS. The opposition Prosperous Armenia (BHK) faction of parliament opted out from the confirmation voting of the three candidates to the Constitutional Court.
“We’ve made our decision and we won’t participate in the election of the Constitutional Court judges,” Prosperous Armenia lawmaker Naira Zohrabyan said at the September 14 plenary session. “We’ve numerously said that clear procedural violations have taken place here.”
The other opposition party, Bright Armenia (LHK), joined BHK in complaining that the candidates for the high court haven’t initiated meetings with the factions.
The three candidates – Yervand Khudkaryan, Artur Ayvazyan and Edgar Shatiryan – nominated by the General Judicial Assembly, President Armen Sarkissian and the Cabinet respectively, are presented for the positions to replace justices Felix Tokhyan, Hrant Nazaryan, and Alvina Gyulumyan, who were ousted after the parliament passed on June 22 the ruling bloc’s constitutional amendments on suspending their powers. The chief justice of the high court, Hrayr Tovmasyan, was also suspended.
Reporting by Anna Grigoryan; Editing and Translating by Stepan Kocharyan
OSCE ODIHR contacts Armenian Ombudsman to discuss high court appointment processes
12:15,
YEREVAN, SEPTEMBER 14, ARMENPRESS. The OSCE Office for Democratic Institutions and Human Rights (ODIHR) contacted Armenia’s Human Rights Defender (Ombudsman) Arman Tatoyan to “discuss the current process of the judicial appointment of the Constitutional Court judges and an agreement was reached to closely follow the process,” the Armenian Ombudsman’s Office said in a news release.
“The Human Rights Defender and the OSCE ODIHR had a number of discussions regarding the importance of an independent evaluation of the process of appointment of the Constitutional Court judges, and how the two institutions can jointly work in following the process”.
The OSCE ODIHR said it will provide expert support in assessment and will prepare a legal analysis regarding the legislation regulating the judges’ appointment, applicable international standards, obligation and experience.
“The purpose of the assessment is to carry out an independent and impartial study from the perspective of development of public trust for the judiciary,” Tatoyan’s Office said, adding that they will focus on the legal acts and procedures regulating the appointment of judges, the application of these procedures and transparency.
Both sides highlighted that parliament must ensure maximum transparency in all phases of the process.
“Public trust for the judiciary can be strengthened through transparent processes,” the Ombudsman said.
Editing and Translating by Stepan Kocharyan
Armenia National Institute of Health to open chapter in Artsakh
13:00,
STEPANAKERT, SEPTEMBER 14, ARMENPRESS. President of Artsakh Arayik Harutyunyan received Armenia’s Healthcare Minister Arsen Torosyan on September 14 in Stepanakert.
The President told Torosyan that they are planning to ramp up healthcare spending to have free and high-quality medical services for all. In this context the President attached importance to deepening cooperation with Armenia’s Healthcare Minister and medical centers for involving experts and organizing continuous training for personnel.
He also thanked the Government of Armenia for donating ambulances to Artsakh’s health authorities, noting that the equipment is “an unprecedented gift for the Artsakhi healthcare system and will solve issues of vital importance.”
Torosyan welcomed the health reforms in Artsakh and said that the Government of Armenia will continue taking steps for supporting them. He said that the National Institute of Health of the Armenian Healthcare Ministry will soon open a branch in Artsakh where medical personnel will undergo training and specialty lectures.
Editing and Translating by Stepan Kocharyan
President al-Sisi receives Armenian FM in Cairo
13:46,
YEREVAN, SEPTEMBER 14, ARMENPRESS. As part of an official visit to Egypt, Armenian Foreign Minister Zohrab Mnatsakanyan was hosted by President Abdel Fattah el-Sisi in Cairo, the FM’s spokesperson Anna Naghdalyan said on social media.
Editing and Translating by Stepan Kocharyan
Armenian, Russian airborne recon and strike teams hold joint military drills
13:01,
YEREVAN, SEPTEMBER 14, ARMENPRESS. As part of joint tactical battalion military exercises, servicemen of the Armenian Armed Forces and Russian troops from the Russian Southern Military District conducted parachuting drills in Armenia.
The scenario of the exercise involved the reconnaissance and commando paratroopers parachuting behind imaginary enemy lines from Mi-8MTV helicopters, the Russian Southern Military District said in a news release.
The exercise involved a multi-kilometer march into imaginary enemy formation, where an offensive action involving capturing enemy combatants and retrieving documents was simulated. The troops also conducted extraction, counterattack and evacuation of wounded soldiers drills.
More than 1500 soldiers and 300 units of equipment including gunships and drones are deployed in the bilateral drills.
Editing and Translating by Stepan Kocharyan
The Pashinyans host children from border towns for barbecue party at official residence
14:48,
YEREVAN, SEPTEMBER 14, ARMENPRESS. The Pashinyan family hosted children from various border towns for a barbecue party in their official residence on September 13.
The Prime Minister himself stepped in as the chef and cooked the traditional Armenian-style barbecue at the grill.
PM Nikol Pashinyan’s wife Anna Hakobyan said they hosted 14 children from the border towns of Chinari, Aygepar and Nerkin Karmiraghbyur of the Tavush provinces which came under Azeri cross-border bombardment during the July attacks.
When Anna Hakobyan had visited the border towns after the Azerbaijani attacks, the children from the villages told her that they dream of personally meeting the Prime Minister in Yerevan.
Editing and Translating by Stepan Kocharyan
Armenian, Russian electronic warfare and air defense troops hold anti-UAV drills
15:34,
YEREVAN, SEPTEMBER 14, ARMENPRESS. Air Defense and Electronic Warfare troops of the Armenian Armed Forces and the Russian 102nd Military Base in Gyumri held UAV detection and elimination drills as part of wider Armenia-Russia bilateral tactical battalion exercises in Armenia, Russia’s Southern Military District said in a news release.
The ZSU-23-4 Shilka anti-aircraft weapon system was employed for eliminating simulated enemy drones on 1500-meter altitude from up to 2500-meter distance.
The electronic warfare troops deployed jammers to disrupt imaginary enemy communications and analyzed intelligence reports on imaginary enemy UAVs and transmitted the data to the air defense units.
More than 1500 Armenian and Russian troops, 300 units of equipment, including fighter jets and gunships, are participating in the bilateral drills.
Reporting by Lilit Demuryan; Editing and Translating by Stepan Kocharyan
Authorities probe suspected vote buying in 2012 and 2017 parliamentary elections
16:26,
YEREVAN, SEPTEMBER 14, ARMENPRESS. Authorities have launched criminal proceedings on vote buying, bribery, electoral violations and other alleged offenses concerning the opposition Prosperous Armenia (BHK) party.
According to the State Revenue Committee’s investigators, they’ve gathered sufficient evidence to believe that several employees of the Ararat Cement, the cement producing factory in the eponymous town, were forced to sign up and join to the Prosperous Armenia Party and were told to secure votes for the party during the 2012 and 2017 parliamentary elections or potentially be fired from their jobs. According to authorities the employees carried out the instructions and even compiled a list containing the names of the people who have agreed to vote for the BHK.
In addition, authorities said some employees of the factory bribed or offered other advantage to a number of residents of Ararat province in exchange of voting for BHK.
Criminal cases on multiple articles are initiated.
Authorities did not name any suspects.
The criminal cases have been forwarded to the General Prosecution for further proceedings.
Ararat Cement and the BHK are yet to comment on the allegations.
Editing and Translating by Stepan Kocharyan