Specifically, the European Central Bank warned about three lenders’ exposure to Turkey, including more than $130 billion exposure of European lenders to the Turkish non-bank private sector.
“As we have seen during the Greek debt crisis, financial markets are sufficiently interwoven that concerns over debt serviceability in one region can spread quite quickly within European banks, adding uncertainty to a sector that has already become less popular with investors as they struggle to see the ECB meaningfully raise rates this economic cycle,” Edward Park, an investment director at Brooks Macdonald, told Bloomberg
The global selling followed President Donald Trump’s plans to double some metal tariffs on Turkey.
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