Turkey begins this week with two important developments for investors, officials and ordinary citizens. One is that the country now no longer faces the prospect of being suspended or blacklisted from an international financial body. The other is that a showpiece privatisation has been halted by order of prime minister Recep Tayyip Erdogan (pictured). Read more
After years of inaction and with just days to spare, Turkey has finally passed a law on terror financing that has been the subject of bitter criticism at home and ever more urgent demands abroad.
Whether the measure will satisfy anyone, however, has still to be seen. Read more
Turkey’s banking sector has escaped being put on an international blacklist, but it might yet be turfed out of a club that battles terrorist financing and money laundering.
For the moment, investors buying Turkish bank bonds in record volumes don’t seem to mind. But, given the uncertainty in world financial markets – and Turkey’s location near the crisis-torn Middle East – they might be wise to pay more attention to the dispute between Ankara and the 36-member Financial Action Task Force over Turkey’s failure to enact key anti-terrorist financing laws. Read more
Turkish banks are a point of pride for the country’s government, which points to their high levels of capital adequacy (about 16 per cent) as one of the bulwarks of the economy in contrast with more brittle institutions in Europe and elsewhere.
They may also be a valuable source of revenue at a time when Turkey’s still slender fiscal deficit is growing more than the country’s government had reckoned on. Read more