BlackRock Bets on Recovery as Turkish Banks’ Value Falls - Bloomberg

BlackRock Bets on Recovery as Turkish Banks’ Value Falls - Bloomberg:



"BlackRock Inc. (BLK), the world’s biggest money manager, said it favors investments in Turkish financial firms as the country’s 16-company bank index fell below book value for the first time in five years.



The book value of Turkish banks included in the index fell to 0.98 at 3:07 p.m. in Istanbul, according to data compiled by Bloomberg. The last time the ratio fell below 1 was the first quarter of 2009, when it sank to 0.96. The Borsa Istanbul 100 Index added 0.9 percent to 62,633.17.



Pressure on Turkey’s lenders is growing after the central bank increased the one-week repo rate to 10 percent from 4.5 percent at an emergency meeting this week and limits on consumer credit were introduced earlier this year. The rate increase will restore investor confidence in the bank and the country, according to BlackRock."



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