Turkey Financial News

Posted by meb at October 30th, 2008

The first “World Economic Forum on Europe and Central Asia 2008” is being held today in İstanbul. Government and business leaders from various European countries, Turkey, Russia, Central Asia and the Middle East are participating in the forum, planned to last until Nov. 1.

The forum, also known as a “mini-Davos,” is organized by the World Economic Forum (WEF), famously known for organizing the high-profile Davos Meetings. Headquartered in Cologny, near Geneva, the forum’s mission statement says its “committed to improving the state of the World.” It claims to be impartial and not-for-profit and is not tied to any political, partisan or national interests. It has observer status on the United Nations Economic and Social Council and is under the supervision of the Swiss Federal Government. Its highest governance body is the Foundation Board, comprising 22 members, including former British Prime Minister Tony Blair and Queen Rania of Jordan. (more…)

Posted by meb at October 30th, 2008

The World Economic Forum’s Global Risk Network has released a new edition of its Europe@Risk report, which is published ahead of the World Economic Forum on Europe and Central Asia. The report examines the global risks most pertinent to Europe, Russia, Eastern Europe, Turkey and Central Asia.

Irene Casanova, co-author of the Europe@Risk report and associate director of the World Economic Forum’s Global Risk Network, said, “Confidence among lenders has dramatically decreased and, combined with liquidity drying up in the markets and high levels of uncertainty, the risks of entering a prolonged recession are growing.”

Casanova said in the summary, “Although we cannot say the economic slowdown, energy considerations and demographic shifts will affect the countries of the region in exactly the same way, we do find that effective mitigation of related risks in these areas requires further collaboration between governments, businesses and other stakeholders.” (more…)

Posted by meb at October 30th, 2008

Italian pharmaceuticals company Recordati has signed an agreement to acquire Yeni İlaç, a Turkish pharmaceutical company, for 48 million euros.

In a statement yesterday Recordati noted that the purchase price will come from its own funds. The completion of the transaction, expected to take place before the end of 2008, is subject to the clearance of the relevant competition authorities, the statement stated.

Founded in 1927, Yeni İlaç is a well-known Turkish pharmaceutical company dedicated to the production, marketing and sales of both proprietary and licensed drugs. Its products are well known and the company has a leading market position in the area of urology. The company is also engaged in contract manufacturing for other pharmaceutical companies. Yeni İlaç has 300 employees, around 100 of whom are medical representatives. The company has a solid financial infrastructure and is growing. Sales have increased consistently over recent years and in 2008 are expected to be around 17 million euros. The Turkish pharmaceutical market is 13th worldwide and is continuously expanding, with a growth rate of over 15 percent in recent years, due to the growth and increasing average age of its population within a national economic context, which has a growing gross domestic product (GDP) and where healthcare expenditures are still relatively low. (more…)

Posted by meb at October 30th, 2008

Turkey will move closer to the World Bank and distance itself from the International Monetary Fund (IMF) in its program priorities concerning economic growth, employment, education and competition, the Anatolia news agency has reported.

Economy bureaucrats say Turkey will place greater emphasis on fiscal discipline and development projects. In the process, technical and financial cooperation with the World Bank will move to the top of the country’s agenda, Anatolia reported.

Government officials stress that Turkey is already working on the post-program review with the IMF and that it will maintain regular dialogue with the fund as infrastructure for the work concerning a potential precautionary standby arrangement already exists. Talks with top IMF officials will continue during Finance Minister Mehmet Şimşek’s visit to Brazil as well as during the G-20 summit of prime ministers and presidents in Washington, which Prime Minister Recep Tayyip Erdoğan is scheduled to attend. (more…)

Posted by meb at October 30th, 2008

Turkey and Poland have agreed to establish the Common Economic Committee as a means to help drive up trade volume between the two countries to $5 billion by 2010.

Visiting Poland with several businessmen, the minister of state for foreign trade, Kürşat Tüzmen, held a joint news conference yesterday with Poland’s Deputy Prime Minister and Minister of Economy Waldemar Pawlak to announce the establishment of the committee.

The committee will be created soon, and its convention will alternate annually between Turkey and Poland. In each meeting, the committee will take into consideration the level reached in commercial ties and suggest regulations to improve relations accordingly. (more…)

Posted by meb at October 30th, 2008

Turkish Airlines (THY) picked as the best bidder in an auction for Bosnia and Herzegovina flag carrier BH Airlines, Bosnia’s federation government said on Wednesday.

“Turkish Airlines was ranked the best among those which had submitted bids and we are starting negotiations on the contract details,” Reuters quoted Transport and Communications Minister Nail Seckanovic as saying.

Malaysian Comintel Corporation and a Jordanian consortium that includes Royal Jordanian Airline were among companies that made binding bids for a 49 percent stake in the company. (more…)

Posted by meb at October 30th, 2008

The Turkish Central Bank suspended foreign exchange selling auctions saying the concerns in the forex markets eased due to positive developments in the global markets, the bank said in a statement on Thursday.

“The auctions can be resumed if required,” the statement said adding that it has sold a total of $100 million since the auctions started on Oct. 24.

The Turkish Central Bank had decided to hold foreign currency selling auctions to prevent the recent problems in the international credit markets from affecting the orderly flow of liquidity in the country’s financial markets. (more…)

Posted by meb at October 30th, 2008

The World Economic Forum, or WEF, is to hold a special “Europe and Central Asia” meeting at a crucial location in what are crucial economic times.

The meeting, a first of its kind, starts today in Istanbul and continues through Saturday.

In choosing Istanbul to hold the meetings, the WEF referred to the city as “a place that symbolizes the merging of continents and civilizations and is the epitome of economic buoyancy.” The meeting brings together international and regional business leaders, government representatives and media personnel, along with cultural and religious leaders from across Europe, Turkey, Russia, Central Asia and the Middle East to “explore the common challenges faced by the regions and to map the path toward a common collaborative future.”

The event-packed meeting, which convenes under the theme “Confronting Challenges in Defining a Collaborative Future,” has three goals: (more…)