EUROPEAN banks fear the dramatic crash of the Turkish lira could spark a crisis reminiscent of the one that hit Wall Street financial institutions 20 years ago.
As oof last week, the lira was down 17 percent against the US dollar for the year, spooking global investors as many banks have borrowed money from Turkish companies. Spanish banks have lent the troubled country €71 billion, ahead of France (£22.6 billion), Italy (£13.6 billion) and Germany (£9.8 billion..
What with this and the Italians threatening not to pay billions of debt back to the EU – it’s toast.
Tess