Turkey Financial News

Posted by meb at November 17th, 2008

Turkey’s economy started to signal the impact of the global financial crisis with the latest figures showing consumer optimism is plunging and unemployment is rising.

Consumer confidence slumped 8 percent in October - to 74.24 points on the official index - while the jobless rate rose to 9.8 percent in August from last year’s 9.2 percent, the Turkish Statistics Institute (TURKSTAT) said on Monday.

The data, illustrating a sharp slowdown in Turkey’s economy, followed signals at the weekend that the government and the International Monetary Fund (IMF) were moving closer to agreeing a new loan accord for the country.

According to figures, the total number of unemployed people in Turkey reached 2.43 million, while the number of unemployed in cities was recorded at 12 percent in August. (more…)

Posted by meb at November 17th, 2008

Turkey is likely to sign an agreement with the International Monetary Fund (IMF) in the near future, with Prime Minister Recep Tayyip Erdoğan giving the green light on Friday to a precautionary stand-by deal with the world body.

Erdoğan met with IMF Managing Director Dominique Strauss-Kahn on Friday on the sidelines of the G-20 summit in Washington, discussing the framework and maintenance of relations. Economy officials said Turkey and the IMF agreed to continue technical work, adding that the two sides would pursue discussions over carrying on the relationship at a certain level. IMF officials also briefed Erdoğan on the global economic outlook and voiced their expectations and approaches. The IMF released a statement after the meeting, noting that Strauss-Kahn and Erdoğan had agreed to remain in close contact and maintain cooperation in the future. In addition, Strauss-Kahn said he is sure Turkey and the IMF would reach an agreement very quickly and that an agreement between Turkey and the IMF is necessary to bring stability to the situation in the country. (more…)

Posted by meb at November 15th, 2008

The number of legal proceedings seem to be rising paralel to the number of people who are unable to pay off the loans they have obtained from banks. As a result of drastic measures taken by Turkish banks to collect their money, motor vehicles begin to pile up in bank parking lots

Certain banks have begun to take drastic measures in an attempt to recuperate out-standing debts.

Banks that have already put the brakes on granting loans due to the credit crunch are also closely monitoring loans they issued before the freeze. The parking lots of Turkey’s banks, especially the ones located in smaller cities, are overflowing with impounded vehicles of people unable to make their car loan repayments. The number of vehicles repossessed by banks has risen by 60 to 70 percent.

Other financial institutions, besides banks, are also painting a similar picture. The number of vehicle owners Volkswagen Doğuş Tüketici Finansmanı, or VDF, a consumer financing company, is planning to pursue legal proceedings against rose nearly 100 percent compared to a year and a half ago, said Kemal Ören, managing director of the firm. (more…)

Posted by meb at November 15th, 2008

Turkey and the International Monetary Fund (IMF) could finalize a new deal in the near future, the head of the Fund said on Friday after meeting Turkish Prime Minister Tayyip Erdogan.

Turkey’s 10-billion dollar stand-by agreement with the IMF expired in May and the government is yet to decide on the future shape of the relations with the IMF amid global turmoil.

“It was a fruitful meeting. There could be a new deal in the near future,” broadcaster CNNTurk quoted Dominique Strauss-Kahn as saying after his meeting with Erdogan on the sidelines of the Group of 20 summit in Washington.

Erdogan and Strauss-Khan discussed the framework and maintenance of relations and agreed to continue technical works, economy officials told Anatolian Agency, adding Turkey and IMF would continue discussions to carry on relations at a certain level. (more…)

Posted by meb at November 14th, 2008

The international credit rating agency, Standard & Poor’s (S&P), revised Turkey’s credit outlook to negative from stable, saying the downside risks are more significant.

S&P also said it affirmed its ‘BB-/B’ foreign currency and ‘BB/B’ local currency sovereign credit ratings and its ‘BB+’ transfer and convertibility assessment on Turkey.

“The outlook revision follows a shift in the balance of risks to the downside as external financing conditions remain difficult,” S&P credit analyst David T. Beers said in a written statement late on Thursday.

“Although we expect Turkey’s current account to narrow in 2009 from a projected deficit of 7.3 percent of GDP in 2008, 2009 gross external financing needs will exceed 14 percent of 2009 current account receipts plus usable international reserves. This is one of the higher ratios among emerging market countries.” (more…)

Posted by meb at November 13th, 2008

Turkish Prime Minister Tayyip Erdogan arrived Thursday in the United States where he is going to represent his country in the meeting of Group of 20 leaders.

The G-20 meeting in Washington, hosted by U.S. President George W. Bush, would also be attended by the leaders of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, United Kingdom, United States and the European Union.

G-20 countries would discuss the possible joint measures that could be taken against the growing global turmoil, while for Turkey, Erdogan’s meetings with the IMF and other institutions on possible financial support packages would be monitored closely. (more…)

Posted by meb at November 13th, 2008

Turkey’s budget deficit was 31 percent lower in October than the same month in 2007, the Turkish Finance Ministry announced yesterday in a written statement.

The budget deficit for October was YTL 70.8 million, signaling that the government was somewhat successful in its efforts to maintain a disciplined fiscal system. The statement also said the 10-month primary surplus was 18.7 percent higher than the same period last year, reaching YTL 38.4 billion. According to budget totals for January to October 2008 released by the ministry, Turkey’s total budget deficit was YTL 4.9 billion for this period. From January to October 2008, budget expenditures were up 7.4 percent, while budget revenue increased by 12.7 percent. The budget deficit for the first 10 months of the year was 60.2 percent less than the same period last year. Budget revenue climbed to YTL 175.8 billion in this period. Turkey set its year-end budget revenue target to around YTL 204.5 billion. The 10-month figure indicates that Turkey has achieved 85.9 percent of this target so far.

Figures on budget performance in October 2008 made public by the ministry showed a primary surplus of YTL 1.9 billion. The ministry announced budget expenditures of YTL 15.2 billion against budget revenue of YTL 15.1 billion in October 2008. (more…)

Posted by meb at November 13th, 2008

The Turkish lira, or YTL, dropped to a two-week low against the dollar as east European stocks slipped and concern mounted that the global economic slowdown is spreading.

YTL fell the most among emerging-market currencies in the region as the greenback was trading at around YTL 1.64 at 4:52 p.m. yesterday. The euro was trading at around YTL 2.05, representing a gain of 5 percent since Nov. 3. The U.S. dollar gained more than 5.7 percent against the Turkish currency in the same period.

The currency was also hurt after Russia’s central bank on Tuesday widened the ruble’s trading band to stem a drain on foreign capital. (more…)