suzyq

Member
Turkish PM warns banks to cut interest rates
Turkish PM warns banks to cut interest rates or gov't will 'take its own measures'
Prime Minister Binali Yıldırım on June 21 urged Turkey’s banking sector to cut interest rates, saying if it does not then the government will itself take forcible measures.

“The train is about to leave [the station]. I’m making the last call. Either you adopt a reasonable level for interest rates or we will take measures [to reduce them],” Yıldırım said at the opening ceremony of a new Istanbul Chamber of Industry building.

“Our bankers should not take this as a threat. But we have tools in hand,” he added.

Yıldırım said that last year the government took necessary measures to boost the country’s economic growth beyond all predictions.

Turkey’s economy grew 5 percent in the first quarter of 2017 compared with the same period in 2016, the Turkish Statistical Institute (TÜİK) reported on June 19.

The figure was higher than the median forecast by state-run Anadolu Agency’s Finance Desk, which predicted 3.8 percent growth for the first quarter.

In 2016, Turkey’s economy grew 2.9 percent despite a series of terror attacks and a deadly coup attempt in July.

“We became the number three [country] after China and India [for economic growth], two times higher than Europe,” Yıldırım added.

“We should guarantee sustainable development. Investments need to be inclusive. Development should be inclusive. We have opportunities to do these. Turkey has opportunities, resources, stability and everything [needed for economic development],” he said.

Wikipedia is still banned in Turkey, but the prime minister urged greater attention to research and development, saying the government plans to boost R&D expenditures to 3 percent of GDP.
June/22/2017

Turkish PM warns banks to cut interest rates or gov't will 'take its own measures' - ECONOMICS
 

Saoirse

Moderator
Turkish PM warns banks to cut interest rates
It could eventually go completely tits up with currency controls on foreign withdrawals etc which is the default position when make believe economies in unstable regimes go down the pan
 

bal canavar

“Je suis l'humanité.”
Turkish PM warns banks to cut interest rates
Why Erdogan Is Flooding Turkey’s Economy With Credit

Turkey is rushing $50 billion of loans to almost 300,000 companies.


In Turkish President Recep Tayyip Erdogan’s hunt for domestic enemies, even the invisible hand of the marketplace is getting cuffed
.
With elections just over two years away and his approval ratings dipping below 50 percent, Erdogan isn’t leaving his political fate to the vagaries of the free market. Instead, he’s risking his country’s future stability by flooding the economy with credit to engineer short-term growth, analysts say.

"Turkish economic policy is all about politics—and politics is all about Erdogan and his AKP party winning decisively in 2019,” said Nigel Rendell of Medley Global Advisors in London. “Nothing else matters.”

............................
Maybe not, but don’t expect the Turkish leader to stop trying, according to Atilla Yesilada, an adviser to GlobalSource Partners, a consultancy in Istanbul.

“Voters are extremely uncomfortable with the purges and clampdowns,” Yesilada said. “Erdogan can only hold the system together by pumping in enough money to keep growth high, so he’s not going to hit the brakes.”

https://www.bloomberg.com/news/arti...ogan-is-flooding-turkey-s-economy-with-credit
 

IbrahimAbi

Grey wisdom
Turkish PM warns banks to cut interest rates
Does not seem a good time for expats to keep large amounts of cash in the country to me.
 

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