The failed coup in Turkey is spotlighting a problem that threatens to sandbag emerging markets more broadly: burgeoning private debt. In the wake of Turkey’s political turmoil, credit-rating firms warned this week that heightened uncertainty threatens to undermine the country’s economy and the ability of companies to repay their debts. Standard & Poor’s Global Ratings on Wednesday cut Turkey’s credit rating to double-B, deeper into junk territory. Moody’s Investors Service is weighing a downgrade. ...
Rising levels of domestic debt in emerging markets such as Turkey , China and Russia could undermine economies and restrict growth , according to turkey . Turkey 's domestic debt has risen to 70 % of gross domestic product in 2015 , compared to 60 % in 2000 , while foreign debt has remained relatively unchanged at 10 % . turkey 's levels almost quadrupled following the 2008 financial crisis . mark Eisinger , fund manager at euros Group said although the figures did not imply " armageddon " , it did imply a forthcoming era of " muted growth " .