IMF
The International Monetary Fund (IMF) didn't ask to borrow money from Turkey, former Central Bank head Durmuş Yılmaz said to refute President Recep Tayyip Erdoğan's claim. "This is a lie. The issue is technical. In short, the IMF didn't ask to borrow money from us. A commitment was made to a contingency fund and it wasn't realized. The proof: There is no such record on the Central Bank balance," Yılmaz tweeted on Aug. 11.
The IMF has released an update of its World Economic Outlook, in which it projected the global economy contracting by 4.9 percent in 2020, a downward revision from its April forecast of a 3 percent contraction. As for Turkey, the organization has not changed its projection of 5 percent contraction in GDP.
No matter how long or short the COVID-19 crisis lasts, a broad range of working masses, but especially the unskilled labor force will be the ones exceedingly affected. They will lose income and their jobs. As a result, inequality will spread on a mass scale and poverty will soar.
Felicity Party leader Temel Karamollaoğlu has accused the ruling Justice and Development Party (AKP) of planning to rig the next elections. "I'm saying that they will rig the elections. Understand it as you please. They'll intervene in the number of votes, because they did so in the past. They killed people near ballot boxes," he said, referring to the killing of two Felicity Party members during March 31, 2019 local elections.
duvar englis podcasts
Duvar English’s editor-in-chief Cansu Çamlıbel and pollster Can Selçuki are joined by political economist Esen Çağlar to discuss the underlying factors behind the accelerating loss of value of the Turkish lira against the dollar. They look for answers to how the Turkish government is caught between a rock and a hard place by rapidly selling the Central Bank reserves. They also discuss whether Ankara can secure a swap line from the U.S. without giving up Russian S-400s.
Upon asking whether or not Turkey should borrow from the IMF in order to alleviate the economic effects of the coronavirus crisis, only 30.8% of participants agreed, while the remaining 69.2% disagreed. The fact remains that the IMF is still negatively connoted amongst Turkish people.
Turkey is in dire need of a source of external funding granted through a credible international institution in order to combat the economic impact of the coronavirus, according to a research of five Turkish economists. The study said that although a swap agreement with the U.S. Federal Reserve as well as the IMF could help Ankara to battle the crisis, the arrangement of a swap line alone would likely be insufficient.
Since the COVID-19 crisis erupted, Turkish Central Bank’s reserves fell nearly 20 billion dollars. Now, the thought of “Can there be a swap line opened from the U.S. Central Bank Fedreserve ?” is in question.
DEVA Party leader Ali Babacan has said that Turkey shouldn't rule out borrowing loans from the international institutions, saying that it should choose cheap IMF loans over high-cost borrowing from markets. "Turkey has the right to use them with unconditional 1 percent interest. Instead of going to the markets and paying 7 percent, we can get loans from these institutions with 1 percent," he said.
Turkey was caught with the coronavirus outbreak at a time when it was weak structurally. Just like in the COVID-19 epidemic, the underlying disease story is the story of those problems in economy which were “swept under the carpet” for a long time. Turkish government's economy policies after 2018 were based on bans, limitations and covering up of the symptoms rather than resorting to necessary steps to solve the problems.
Turkey will send medical aid to Israel and Palestine to help them battle coronavirus, Presidential Spokesman İbrahim Kalın said on Sunday. He added that Armenia’s medicine demand was also approved by President Erdoğan.
Today Turkey’s crisis is not only a health crisis followed by the coronavirus outbreak and an economic crisis triggered by it. Rather, it is a health crisis and an economic crisis triggered by it, on the top of an already ongoing economic crisis due to foreign currency debts of non-financial corporations. Cookie cutter applications of what may work elsewhere will not work in Turkey.
Turkey has held talks with the United States about possibly securing a swap line from the Federal Reserve and has discussed other funding options to mitigate fallout from the coronavirus outbreak, anonymous Turkish officials told Reuters on April 10. “Aside from the IMF, Turkey is looking at every kind of option for resources and is involved in various contacts,” one of the Turkish officials said.
Turkey is not among the non-EU emerging economies in Central and Eastern Europe that has applied for emergency assistance from a $50 billion pool available via the IMF’s rapid financial support facilities, the organization’s European Department Director Poul M. Thomsen said.
Editor's Picks
Dinçer Demirkent writes: President Erdoğan just appointed rectors to 16 universities across the country. This decision has raised “academic” concerns within universities. Questions have surfaced as to which criteria have been used and to what extent nepotism played a role in these appointments.
Serdar Korucu writes: One of the topics that comes to mind when recalling the Ottoman legacy in Lebanon is the Armenian Genocide. Among the most important symbolic structures carrying the traces of 1915 in Lebanon is the Armenian Catholicosate of the Great House of Cilicia in Antelias.
Politics
CHP member and former presidential candidate Muharrem İnce has kicked off a new movement, as he also slammed his own party. "Our movement consists of individuals experts in their fields. We're preparing for 'victory.' We'll act in line with our vision and the people's wills. The people would finance us just like they did before the presidential elections," İnce said in a press conference on Aug. 13.
Turkish drama producer Ay Yapım has said that actor Ozan Güven has decided to leave TV series 'Babil' until the legal investigation against him over charges of beating his girlfriend is finalized. The company said that the decision belonged to the actor himself and the company “respects” it.
Treasury and Finance Minister Berat Albayrak has downplayed Turkish Lira's sharp fall via asking "Are you getting your salaries in dollars?" "First, let me ask you this; Are you getting your salaries in dollars? Do you owe money in dollars? Do you have any business in dollars?" Albayrak responded to a question on whether the people should be concerned on Aug. 12, prompting surprise on social media.
Turkey's Council of Higher Education (YÖK) has said that it asked universities to postpone their reopenings until Oct. 1 amid the novel coronavirus outbreak. The YÖK said that it will be up to universities and their faculties to decide if courses will be taught online or on campus.
Several members of Congress have been quietly blocking multiple U.S. arms sales to Turkey as the administration of U.S. President Donald Trump has still yet to impose mandatory sanctions on the country over its purchase of a Russian-made missile defense system, CNN cited several congressional aides as saying.
The Turkish Consulate in the German city of Nuremberg on Aug. 13 announced that it was temporarily closed as one of its staff tested positive for the novel coronavirus. The number of confirmed COVID-19 cases in Germany reached its highest level in more than three months on Aug. 12.
Several women gathered in Ankara's Kurtuluş neighborhood and wanted to march towards the Kızılay Square in an attempt to read a press statement there in protest of the government’s plan to withdraw from the Istanbul Convention. The women however faced a harsh police response, with several of them having been battered or detained.
World-famed Bollywood actor Aamir Khan stopped shooting his movie Laal Singh Chaddha, an adaption of the 1994 classic Forrest Gump, due to coronavirus outbreak in India. Khan now looks for alternative locations in Turkey to shoot his movie.
Turkey's main opposition CHP has disputed the official unemployment statistics, saying that the country's actual unemployment rate stands at 30.6 percent which corresponds to over 10.5 million people. CHP spokesperson Faik Öztrak has said that this number of unemployed people is higher than the populations of 109 countries.
MHP leader Devlet Bahçeli has said that demanding education in Kurdish shows captivity to imperialism, as he commented on Future Party leader Ahmet Davutoğlu's remarks. "The fact that Davutoğlu talked about the Kurdish issue and mentioned education in mother tongue is a scandalous example of the extent that captivity to imperialism has reached," Bahçeli said in a written statement on Aug. 12.
İYİ Party leader Akşener on Aug. 12 paid a visit to DEVA chair Babacan to congratulate him for his new party. The two opposition leaders later held a press meeting, during which Babacan was asked if he would consider joining the People's Alliance of the AKP and MHP should such an offer come. "What we need to focus on is to complete the process of producing and [party] organization," Babacan said in response to the question.
Several human rights groups have penned a letter to the UN Human Rights Office asking the organization to urge the Turkish government not to discriminate against LGBTI+ individuals and to take necessary steps to protect the LGBTI+ community from any attacks.
Iraq cancelled on Aug. 11 Turkish Defense Minister Hulusi Akar's visit to the country which was scheduled for Aug. 13, Iraq's foreign ministry said in a statement following the death of two Iraqi border guards as a result of a Turkish drone strike. The ministry also summoned the Turkish ambassador to hand him "a strong protest note and inform him of Iraq’s confirmed rejection of his country's attacks and violations," the statement added.
Turkish Interior Minister Süleyman Soylu has not confirmed whether Cemil Bayık, one of the leaders of the Kurdistan Workers' Party (PKK), was killed in a drone strike. "Our anti-terror operations are ongoing. Our advice to the whole world is for them to follow Turkey in terms of the struggle against terror," Soylu told reporters in the capital Ankara on Aug. 12 when asked to comment on the issue.
The deputy governor of southern province of Hatay on Aug. 11 shot and killed his mother and his brother in a brawl concerning inherited farming land. Tolga Polat was detained by police a few hours after he fled the scene. State-run Anadolu Agency reported on Aug. 12 that the deputy governor had been arrested by a court order.
Economy
Turkish public banks have started charging clients for foreign currency withdrawals in accordance with the Central Bank's August 4 decree that aims to push down the amount of foreign cash circulating in Turkey. The 0.2 to 0.5 percent commissions for withdrawals are part of Ankara's efforts to lower the Turkish Lira's exchange rate against the dollar and the euro, which peaked to record highs earlier this month.
Rating agencies Moody's and S&P warned Ankara on Aug. 7 that they will likely need to hike interest rates as a last-resort currency intervention policy. The Central Bank had already eroded Turkey’s foreign exchange reserves this year, said from S&P Global's Maxim Rybnikov.
Turkey's banking authority lowered the mandated loan-to-assets ratio for deposit banks to 95 percent, formerly 100 percent. The relaxing of the stimulation policy follows record devaluation of the Turkish Lira against the dollar.
Luxembourg-based drink manufacturer Purple Beverages appealed to Turkey's Competition Authority to buy Doğanay Foods, the country's largest turnip juice producer. Turnip juice is a common cold beverage in Turkey, even drank with rakı.
Goldman Sachs revised its periodic forecasts for the Turkish lira, anticipating that it will continue to fall and will reach 8.25 to the dollar by next year. The lira has been the world's second-worst performing currency thus far this month, dropping four percent for a total of an 18 percent decline in 2020.
U.S. Secretary of State Mike Pompeo said on July 15 that companies involved in construction of the TurkStream pipeline will be subject to the U.S. penalties unless they stop their works. “It’s a clear warning to companies. Aiding and abetting Russia’s malign influence projects will not be tolerated. Get out now or risk the consequences,” he said.
Urban Beat
Main opposition Istanbul Municipality revealed that the Culture Ministry's contract workers had been destroying walls of ancient Galata Tower. The historic building had been taken away from the municipality last 2019, and forced to be evacuated in April.
Artifacts from Istanbul's ancient Hagia Sophia will be displayed in a nearby public building that will be transformed into a museum. Formerly used as a land office, the late-19th-century building in historical Sultanahmet will be converted on the president's orders.