Turkey’s debt-fuelled economic revival continues

Akin Nazli in Belgrade July 5, 2020

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

Clare Nuttall in Glasgow July 3, 2020

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

bne IntelliNews July 2, 2020

Foreigners bought €169.99mn of property in the tiny Adriatic country in 2019.

Nato nerves on edge as France pulls out of sea operation in major row with Turkey over Libya

bne IntelIiNews July 2, 2020

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

bne IntelIiNews July 1, 2020

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%

Akin Nazli in Belgrade July 1, 2020

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

bne IntelIiNews July 1, 2020

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

bne IntelIiNews June 30, 2020

Calls it a “criminal” intervention by “a country which claims to be a Nato member”.

Turkey burnt through estimated $11bn of reserves in May

Akin Nazli in Belgrade June 29, 2020

Central bank’s open swap stock jumped to $52bn at end-May from $36bn a month ago.

“Embarrassing” ejection of Turkey from MSCI EM index could suck near billion dollars from country’s stock markets says economist

bne IntelIiNews June 25, 2020

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

Akin Nazli in Belgrade June 25, 2020

Restructuring waves in Turkey initiated in 2016 have strengthened.

Turkey’s central bank halts rates easing cycle surprising markets

bne IntelIiNews June 25, 2020

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

Akin Nazli in Belgrade June 24, 2020

Prying officials also driving business clients away from banks.

TURKEY INSIGHT: Morgan Stanley warns Turks MSCI Frontier Markets status may be around corner

Akin Nazli in Belgrade June 24, 2020

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

bne IntelIiNews June 23, 2020

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

Akin Nazli in Belgrade June 22, 2020

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

Ben Aris in Berlin June 22, 2020

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)

Turkish companies for first time use central bank’s yuan swap facility to cover import bills

bne IntelIiNews June 21, 2020

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

Akin Nazli in Belgrade June 18, 2020

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

Akin Nazli in Belgrade June 18, 2020

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?”