Turkey
Turkey’s debt-fuelled economic revival continues
Credit card and debit card payments in Turkey amounted to TRY20.1bn in the country’s fourth ‘post-lockdown’ week ending June 26.
Suma Chakrabati leaves the EBRD a greener bank
Green financing reached close to 50% of the EBRD’s volume of investment in 2019, but as he leaves the bank Chakrabati warns of the need to put the green economy at the heart of the post-COVID recovery.
Russians, Serbians, Turks the biggest property buyers in Montenegro
Foreigners bought €169.99mn of property in the tiny Adriatic country in 2019.
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Nato nerves on edge as France pulls out of sea operation in major row with Turkey over Libya
Paris claims French warship targeted with Turkish weapons systems after it moved to check on suspected breach of arms embargo by cargo ship.
Turkey hit by VW’s scrapping of auto plant plan and refusal by Europe to list country as safe for tourism
German auto giant says it can no longer see demand for proposed factory’s output. Ankara tells EU travel and coronavirus officials to correct their “mistake” as soon as possible.
Turkey’s Akbank sells $500mn of 5-year eurobonds at 6.80%
Private lender’s deal is expensive, but there are expectations that emerging market investors have finally opened up for corporate and financial institution issuance.
June PMI shows Turkish manufacturing back on expansion path
Severity of COVID-19 downturn was such, however, that much more will be needed in coming months to recover output lost during worst of pandemic, says IHS Markit.
Macron accuses Erdogan of massively importing jihadists into Libya
Calls it a “criminal” intervention by “a country which claims to be a Nato member”.
Turkey burnt through estimated $11bn of reserves in May
Central bank’s open swap stock jumped to $52bn at end-May from $36bn a month ago.
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“Embarrassing” ejection of Turkey from MSCI EM index could suck near billion dollars from country’s stock markets says economist
Points out asset managers that track the index would have to liquidate if country was booted out.
Turkey’s Hema Group restructures €400mn bank debt
Restructuring waves in Turkey initiated in 2016 have strengthened.
Turkey’s central bank halts rates easing cycle surprising markets
Analyst now expects benchmark to be left on hold over rest of this year and next with tightening not ruled out given Turkey’s large external debts and vulnerability to renewed financial market turbulence.
BEYOND THE BOSPHORUS: Tobin tax means it’s back to the good old money changing days at Istanbul’s Grand Bazaar
Prying officials also driving business clients away from banks.
TURKEY INSIGHT: Morgan Stanley warns Turks MSCI Frontier Markets status may be around corner
At the same time, ING discordantly claims it senses possible turning point for foreigners’ interest in Turkish bonds.
S&P sees Turkey’s problematic loans at 20% by 2021
High corporate sector indebtedness, accelerated lending via the state’s Credit Guarantee Fund (CGF) and steep proportion of FX lending by state banks concerning ratings agency.
ISTANBUL BLOG: Banking regulation as clear as dishwater
Latest rule change from central bank in effort to ramp up credit in economy suspends reserve requirement for lenders. Very likely an amendment will emerge before you get to the end of this sentence.
Global pandemic is boon for ESG funds, outperforming their brown peers
The coronavirus (COVID-19) pandemic has been a boon for environmental, social and governance (ESG) funds, 85% of which are now outperforming their non-ESG peers, according to a paper released by the Institute of International Finance (IIF)
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Turkish companies for first time use central bank’s yuan swap facility to cover import bills
Stark deterioration in national lender’s FX reserves, partly caused by interventions to prop up lira, has intensified anxieties Turkey is in sore need of additional hard currency funding. Turk Telekom among firms to make initial use of mechanism.
Plenty of jabber on the Borsa Istanbul but talk of Naturelgaz IPO not idle
Market also learns Global Yatirim Holding considering delisting Global Ports Holding from LSE. Stock market tyros, meanwhile, sniffing around small caps.
BEYOND THE BOSPHORUS: Erdogan becomes top shareholder in Turkcell
Telia seen as selling stake at less than 50% of market value. Analyst asks: “How did a partly Swedish-state-owned co get so deeply embroiled in Turkey’s authoritarian decline?”