1994 krizi
DESCRIPTION
Currency crisis of 1994TRANSCRIPT
1980 – 1994 Period of Turkish Economy
Pre-crisis Period
Reasons of High PSBR
Table 1: PBRS Ratio Between 1987 and 1995
Stabilization Program, April 5th, 1994
Post-crisis Period
A liberalization program launched
(1980)
Pre-crisis
Period
I. Large and growing fiscal and external imbalances
II. Rising and very high PSBR
III. Political and social problems
IV. Real exchange rate appreciation
i. Generous agricultural support policies
ii. Worsening performance of the state owned
economic enterprises
iii. The increased cost of military operations
iv. Interest payments
Ratios to GPD, %
1987 1988 1989 1990 1991 1992 1993 1994 1995
PSBR 6.1 4.8 5.3 7.4 10.2 10.6 12.0 7.8 5.4
Financing PSBR;
Net Domestic
Borrowing3.4 2.7 4.5 6.5 9.8 9.0 10.6 9.6 6.3
Bond 1.2 0.3 0.4 0.5 2.0 2.2 1.1 6.3 2.5
Treasury Bill 1.2 1.9 2.6 2.0 0.4 1.4 1.5 -1.8 1.1
Cash Advances from
CB
0.5 0.5 0.2 0.1 1.7 1.6 2.7 1.3 1.2
Others 0.5 0.0 1.3 3.9 5.7 3.8 5.3 3.8 1.5
Net Foreign
Borrowing2.7 2.1 0.8 0.9 0.4 1.6 1.4 -1.8 -0.9
PBRS Ratio Between 1987 and 1995
Aftermath of the Crisis
The Turkish economy contracted by 6%
In the first quarter of 1994, the Turkish Lira (TL)
was devalued more than 50% against the US$
The Central Bank lost half of its reserves
Interest rates skyrocketed
Inflation rate reached three digit levels
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