Ali Rıza Güngen writes: In Turkey, a portion of the risk stemming from foreign currency loans has been transferred to the public. In other words, not the individual debts but the risk has been spread to society.
Turkish Treasury is “printing” forex bonds to create additional foreign currency for its own operations. Public banks, on the other hand, are spending their cash foreign currencies and replacing them with forex bonds the Treasury is printing.
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.
AKP group deputy chair Mehmet Muş has said that the party is "clarifying" the issues related to the planned transfer of the main opposition CHP's stakes in Turkey’s largest listed lender İşbank. "We are clarifying the question marks. Await news from us,” Muş told journalists on June 5.
The ruling Justice and Development Party (AKP) government has appealed to foreign allies in an urgent search for funding, three senior Turkish officials told Reuters. Treasury and Central Bank officials have held bilateral talks in recent days with counterparts from Japan and the United Kingdom on setting up currency swap lines, and with Qatar and China on expanding existing facilities
Turkey’s government is considering a capital injection worth 20 billion lira ($2.81 billion) for three state-owned banks -- Ziraat Bank, Halkbank and Vakıfbank -- so that they can provide loans to businesses hit by the coronavirus epidemic, two anonymous banking sources told Reuters.
Former advisor for Turkish Treasury: Excluding swap lines, central bank reserves $13.4 billion in the red
Excluding swap lines, Turkey's Central Bank's net reserves stood at $13.4 billion in the negative as of the end of April, according to economist and former Treasury Advisor Mahfi Eğilmez. The primary reason behind the foreign currency reserves falling by $28.5 is the sale of the Central Bank reserves, he argued. Eğilmez also said that there has been a decrease of $1.5 billion in foreign currency bank accounts in the past week.
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's Treasury on April 6 borrowed 12.6 billion Turkish liras (approximately $1.86 billion) from domestic markets, by selling 14-month government bonds and eight-year CPI indexed government bonds at two separate auctions.
The ruling AKP has reportedly resumed an effort to transfer the main opposition CHP's 28.1 percent stake in İşbank to the Treasury. AKP deputy chair Canikli presented a draft proposal regarding the issue to Erdoğan, who called for it to be revised and presented to him again "as soon as possible," daily Hürriyet reported on Feb. 13.