Elevated Risks To Policy Stability

June 2008 | Ratings Update

The ongoing political ructions in Turkey between the government and secularist institutions including the military and judiciary have significantly elevated the risks to the country's political risk profile. Reflecting the severity of the situation, Turkey's short-term political risk rating has been decreased to its lowest level since 2002 at 50.9. Specifically, the increased likelihood of early elections has impacted the policy-making process and policy continuity subcomponents, which have fallen to 50.0 and 47.5 respectively. Furthermore, rising divisions between pro-government and pro-secularist forces on the ground have elevated the risks of public demonstrations. This has prompted a downward revision in the

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