Banking and Finance Qatar wealth fund buys stake in Turkey’s Eurasia Tunnel The Qatar Investment Authority (QIA) has bought a stake in the Eurasia Tunnel company in Istanbul from the South Korean partner in the venture, SK Group, a statement by the Turkish Competition Board showed on Tuesday. The competition board decision, taken on September 8 and posted on its website on Monday evening, showed that QIA […] September 14, 2022
Banking and Finance Turkey’s new rules force banks to curtail corporate lending Some Turkish banks are curtailing corporate lending after the government’s latest raft of regulations raised their costs and forced many to cut their balance sheet risks, five banking and private sector sources told Reuters. The new rules, part of President Tayyip Erdogan’s unorthodox management of the economy, have especially depressed longer-term lending. The owner of […] September 13, 2022
Economy Turkey’s foreign reserves boosted by friendly country support The Turkish central bank’s foreign currency reserves are getting stronger as friendly countries are providing support, President Tayyip Erdogan said, broadcaster Haberturk reported on Friday. The central bank’s reserves have come under pressure from its forex market interventions to support the Turkish lira and to meet government institutions’ forex needs. “Our central bank reserves started […] September 12, 2022
Tech Turkish firm eyes drone manufacturing in Ukraine Ukrainian President Volodymyr Zelenskiy on Friday met with the head of Turkish defence firm Baykar and said the company would set up a factory in Ukraine to build unmanned aerial vehicles. Baykar’s Bayraktar TB2 drone has been hugely popular in Ukraine, where it helped destroy many Russian artillery systems and armoured vehicles. “We discussed the […] September 11, 2022
Aviation Turkish Airlines to add more flights to UAE as demand surges Flag carrier Turkish Airlines plans to increase flight frequencies to and from the UAE to boost connectivity amid higher customer demand. The number of flights from Istanbul to Abu Dhabi, Dubai and Sharjah will increase, offering more flexibility to customers, the airline said in a statement. Currently, Turkish Airlines has three daily flights from Dubai […] September 8, 2022
Manufacturing Turkey working on new support package for SMEs Turkey’s finance ministry said on Tuesday it was working on a Treasury-backed package to support small and medium-sized enterprises (SME) in need of collateral, in its latest step to boost the sector. The statement attributed to Finance Minister Nureddin Nebati said the package would support SME financing needs and reinforce the government’s broader programme prioritising […] September 7, 2022
Economy Turkey’s inflation hits new 24-year high beyond 80% Turkey’s annual inflation climbed to a fresh 24-year high of 80.21 percent in August, a bit below expectations according to data on Monday, after the central bank unexpectedly cut interest rates and stoked a nearly year-long cost-of-living crisis. Inflation has raced higher since last autumn when the central bank gradually cut its policy rate by […] September 6, 2022
Economy Turkey sees inflation to ease to 65% by 2022-end Turkey expects inflation to ease to 65 percent by the end of the year from nearly 80 percent in July, while the current account deficit is seen at $47.3 billion in 2022, government forecasts showed on Sunday. President Tayyip Erdogan’s new economic model has prioritised growth, exports, employment and investment while seeking to cut interest […] September 5, 2022
Economy Turkish trade deficit surges 162% to $11.3bn in August Turkey’s trade deficit jumped 161.8 percent year-on-year in August 2022 to $11.277 billion, the Trade Ministry said on Friday, as surging energy import costs continue to widen the shortfall. Turkey’s exports rose 13.2 percent to $21.341 billion in August, while imports jumped 40.8 percent to $32.618 billion, the data showed. In a speech, Trade Minister […] September 4, 2022
Economy Goldman Sachs raises Turkey 2022 GDP growth to 5.5% Goldman Sachs said on Thursday it had raised its forecast for Turkey’s 2022 GDP growth to 5.5 percent from 3.5 percent, while lifting its 2022 current account deficit forecast to $45 billion from $36 billion. It said the Turkish Central Bank’s forex reserves had risen sharply since the third week of June and that, with […] September 2, 2022
Economy Turkey’s economy grew 7.6% in Q2 driven by domestic demand Turkey’s economy grew 7.6 percent year-on-year in the second quarter as expected, extending a hot streak on strong domestic demand and exports, according to data on Wednesday, though economic activity was seen slowing through year end as demand cools. Gross domestic product (GDP) expanded 2.1 percent compared with the previous quarter on a seasonally and […] September 1, 2022
Retail Russia’s Ozon opens Turkish office to help cross-border orders Russian e-commerce firm Ozon said on Tuesday it would open a local office in Turkey and make it easier for consumers to make cross-border orders, helping Russian shoppers to buy goods directly from Turkish sellers on its platform. As Western sanctions have rained down on Russia over its actions in Ukraine, commercial ties between Moscow […] August 31, 2022
Banking and Finance Fugitive Turkish crypto fraud suspect arrested in Albania resort Albanian police on Tuesday arrested the fugitive Turkish founder of crypto-exchange Thodex, wanted by Interpol for suspected crypto fraud and at large for a year, police and media said. Albanian and Turkish media identified the suspect as Faruk Fatih Ozer. The Turkish interior ministry said authorities had launched extradition proceedings. Police referred to the suspect […] August 31, 2022
Analysis Banking and Finance Gulf banks take $950m hit on Turkish economic woes The exposure of GCC banks to Turkey through their subsidiaries is increasingly credit-negative due to deteriorating operating conditions in the country, according to analysts. But Gulf-based banks are unlikely to exit Turkey despite the challenging conditions, mainly because of the lack of potential buyers, said Fitch Ratings in a new research note released on Tuesday. […] August 30, 2022
Economy Turkish trade deficit jumps 147% to $10.7bn in July Turkey’s foreign trade deficit surged 147 percent year-on-year to $10.69 billion in July, with imports surging 41.4 percent, data from the Turkish Statistical Institute showed on Monday. Imports stood at $29.24 billion, while exports rose 13.4 percent to $18.55 billion, the data showed. Under an economic programme unveiled last year, Turkey aims to shift to […] August 30, 2022
Tourism Turks frustrated by ‘deliberate’ visa rejection by European nations Turkish sports presenter Sinem Okten was surprised to see her visa application to Europe’s Schengen area rejected twice, having visited often to cover matches and interview figures like Italian keeper Gianluigi Buffon and Liverpool’s Juergen Klopp. “I applied first to Germany then to France. Both rejected my application,” she said. “I’ve travelled abroad numerous times […] August 29, 2022
Banking and Finance Turkey dismisses ‘meaningless’ concerns over US warnings Turkey’s Finance Minister on Friday dismissed as “meaningless” concerns among Turkish businesses over a US Treasury warning that they risked being penalised if they maintained commercial ties with Russians under sanctions. NATO-member Turkey has sought to strike a balance between Moscow and Kyiv by criticising Russia’s invasion and sending arms to Ukraine, while opposing the […] August 29, 2022
Economy Israeli diplomat in Turkey expects ambassador appointment in weeks The Israeli charge d’affaires in Turkey said on Friday the re-appointment of an ambassador to Ankara could happen within weeks, while repeating Israel’s expectation that the Hamas office in Istanbul be closed down. In a roundtable meeting with journalists, Israel’s current top representative in Ankara Irit Lillian said the process of re-appointing an ambassador to […] August 28, 2022
Banking and Finance Turkish central bank’s net forex reserves drop to $13.88bn The Turkish central bank’s net international reserves fell $1.8 billion to $13.88 billion in the week to August 19, central bank data showed on Thursday, after hitting their highest level since late April a week earlier. The exchange rate used by Reuters on Thursday was 17.9688. Last month, the net forex reserves dropped to $6.07 […] August 26, 2022
Banking and Finance Turkey lowers reference interest rate for September Turkey’s central bank lowered its reference interest rate to 15.34 percent for September, from 16.32 percent in August, according to an official document, in a move that is likely to lower interest rates on corporate loans. On Saturday, the central bank unveiled new required bond holdings for lenders meant to address the widening gap between […] August 25, 2022
Economy Turkey inflation to fall sharply in December says finance minister Turkey’s annual inflation rate will enter a sharp downward trend as of December due to favourable so-called base effects and the fall will continue throughout 2023, Finance Minister Nureddin Nebati said on Tuesday. Nebati was speaking in a televised interview with broadcaster NTV. Inflation hit nearly 80 percent in July. Turkey’s annual inflation jumped […] August 24, 2022
Tourism Foreign tourist arrivals to Turkey soar 53% in July Turkey’s foreign visitors jumped 53 percent in July from a year earlier, exceeding pre-pandemic levels and paving the way for $37 billion in tourism revenues sought by the government in support of President Tayyip Erdogan’s unorthodox economy policy. Foreign visitors to Turkey leapt to 6.67 million in July, mostly on the back of wealthy Russian […] August 23, 2022