Turkey Financial News

Posted by meb at November 3rd, 2008

An executive of the World Bank expressed thought on Sunday that Turkey would be affected both positively and negatively from the global economic crisis.

Shiego Katsu, the vice president of the World Bank, said that the global economic crisis would have not only positive but also negative impact on Turkey.

Turkey’s growth would also slow down due to the crisis, Katsu told a press conference in Pazarcık town of the southeastern province of Kahramanmaraş. (more…)

Posted by meb at November 1st, 2008

The Turkish government has set its economic growth target at 4 percent and forecasts an inflation rate of 7.5 percent for 2009.

Turkey’s economic program for 2009 was published in the Official Gazette on Friday. The government estimated that Turkey’s gross domestic product (GDP) would reach $788.4 billion. The budget was prepared in Turkish lira (TL) because the TL will replace the new Turkish lira (YTL) as of the beginning of 2009.
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Posted by meb at October 31st, 2008

The Turkish economy is “on a dangerous path” and in urgent need of funding, according to articles in three prominent newspapers yesterday.

Citing a “newly published estimate” by Deutsche Bank, The Washington Post claimed Turkey “alone could need $90 billion” in international funding, due to its high current account deficit. Listing countries that needed support from the International Monetary Fund, or IMF, the newspaper pointed to the fact that some of those are new democracies located in strategic regions. Pakistan tops the list, according to the newspaper, while “South Africa, Poland, Romania, Baltic states and Turkey could be next.” (more…)

Posted by meb at October 31st, 2008

Mixed messages on the future of the global economy proliferate as leaders make moves to bring optimism to markets worldwide and international newspapers shred Turkey’s stance amid the turmoil. The national currency hovers around 1.50 per US dollar even as the Istanbul bourse takes a hefty 7.4 percent jump.

An interest rate cut by the U.S. Federal Reserve and the International Monetary Fund approval of an emergency loan program to emerging markets bring optimism to the global economy again, as stock markets worldwide, including Turkey, rally. But articles in three respected newspapers cast a shadow over how Turkey will cope with its economic problems. (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 25th, 2008

A draft bill facilitating currency flow from other countries to Turkey was submitted to Parliament late Friday.

The government’s move aims to ease market conditions in the country. The market was shaken by the rapid increase in foreign currency. According to the draft, those transferring their accounts to Turkey will only pay 2 percent in tax. The government expects billions of euros in remittances from Turks living and working in Germany and some other European countries. There are more than 3 million Turks living in Germany.

The scope of the law is not limited to currency. Gold, stocks, shares and other capital market instruments are also included within the scope of the bill. These assets will be used to reinforce the capital structure of companies. One of the most important advantages to those bringing money back to Turkey is that they will not be subject to any inspection of the origins of the money. (more…)

Posted by meb at October 25th, 2008

Turkey can use as much as $8.8 billion of financial support from International Monetary Fund (IMF) which is planning to increase the borrowing quotas five folds for the member emerging countries.

According to the plan, Turkey can borrow some $8.8 billion when its 1,191 billion SDR ($1.772 billion) quota is taken into consideration.

The new IMF plan echoes initiatives in the U.S. and Europe to provide funding to arrays of banks to avert a financial-system collapse.

Under the program, countries would be able to borrow as much as 500 percent of their quota — the capital they agree to contribute to the IMF, the fund officials told Reuters news agency on Friday.

Normally, the emerging countries may borrow as much as three times their quota. The standard IMF loan term is three to five years. (more…)

Posted by meb at October 25th, 2008

World Bank Turkey Director Ulrich Zachau said yesterday that he does not expect stagnation in the Turkish economy.

Speaking at the Organization of the Islamic Conference’s (OIC) Economic and Commercial Cooperation Permanent Committee (ISEDAK) meeting in İstanbul yesterday, Zachau stated that there will be no stagnation in Turkey, which has strong trade ties with the US and the European Union, noting however that the growth rate of the country will decline. He added that the private sector in Turkey should be supported and that new investment opportunities should be introduced by the government. “Other members of the OIC will also experience slow growth in the coming months due to the global financial fluctuations,” he said. (more…)