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Good News! Qatar Was At Least $3 Billion Worth Of Serious When It Comes To Bailing Out Turkey

But don't get too excited about the lira, ok?

Despite Turkish markets being on holiday starting tomorrow, the lira continued to slide. On Friday, S&P cut Turkey to B+ from BB- . The rating agency had the following to offer with regard to the outlook: The negative outlook reflects our view that Turkey's economic, fiscal, and debt metrics could deteriorate beyond what we expect, if political uncertainty contributed to further weakening in the investment environment, potentially intensifying balance-of-payment pressures. We could also lower the ratings if we assessed Turkey's monetary policy credibility as deteriorating due to government intervention. We could revise our outlook on Turkey to stable if the government's fiscal deficits remained modest and the independence of key institutions was not eroded. Good luck with that latter bit about "independence" not being further "eroded." But never fear, Qatar is here. Last week, Sheikh Tamim bin Hamad Al Thani agreed to $15 billion in direct investments to help Turkey weather the storm. Why would the Sheikh come to Erdogan’s rescue? Well, for one thing, Qatar has skin in the game. Qatar National Bank owns Turkish lender Finansbank, and QNB Finansbank accounts for 14% of Q
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