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Turkey's battered lira weakened 5 percent Friday after a Turkish court rejected a U.S. Christian pastor's appeal for release, a day after the United States warned of further sanctions unless Ankara hands over the detained minister.The lira crisis has deepened concerns about the broader economy – particularly Turkey's dependence on energy imports and whether foreign-currency debt levels pose a risk to the banking sector.Turkish sovereign dollar bonds fell, while the cost of insuring exposure to Turkish debt rose.For companies, the cost of servicing foreign debt has risen by a quarter in lira terms in the past two months.For years Turkish firms have borrowed in dollars and lira to take advantage of lower interest rates.Turkey has the highest foreign exchange-denominated debt among emerging markets, Societe Generale said in its note Friday, estimating its short-term external debt at $180 billion and its total external debt at $460 billion.REFINANCINGThe crisis is also threatening efforts by Turkish banks to refinance syndicated loans.
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