If Turkey implodes, here’s who else gets hurt

Meanwhile, the economic woes in Turkey could also bring problems for European sovereign debt, potentially affecting bond investors and governments who rely on the debt markets to fuel their spending plans.

“I don’t expect any euro zone country bond yields to really suffer due to Turkey, but on the margin the countries in the euro zone with the highest bond yields would probably be the ones who could feel some minor impact,” Hesse from Berenberg bank told CNBC via email.

He mentioned that in this case Greece and Italy could be hit as well as Spain, “due to its higher-than-average bank exposure to Turkey.”

However, Ash played down risks that Turkey could become a sovereign debt problem. “I don’t see huge global contagion. Turkey is still a relatively small economy – (worth) $850 billion, and unlikely this will be sovereign debt event,” Ash said in an email.

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