If you are not based in Turkey, I would assume that it will be very difficult for you to believe that just right after the coup attempt, just one day after, the social life and business life came back to normal. So I understand that it’s very surprising to you but it shows how resilient the Turkish economy is and how diversified the economy is. Because Turkish economy is not a single commodity based economy and the companies are very much experienced in working under uncertainty or instability environment.
Turkish central bank has taken immediate measures to prevent of the adverse effect of the coup attempt the week after and therefore the Turkish Lira depreciation was limited. However of course this will have a negative effect in the medium to long term to Turkish economy especially in the growth rate. But still Turkey is expected to grow about 3% this year and same for next year as well.
The capital inflow is crucial for Turkey because the external funding needs are high for Turkey.
However when you look at the Banking industry, The Turkish banks are the back bones of the Turkish economy and they have recently successfully rolled over their syndicated loans with a marginal price increase.
Turkey gives utmost importance to the foreign investors and we see no increased concerns from the foreign companies operating in the country.
The foreign investors who are experienced working in the country are committed to their operations but we see a bit over reluctance for the new commerce to try to understand what’s happen in the country of course.
As ECA’s policy, they haven’t changed their policy in terms of cover or premium levels, we see going forward that the collaboration is crucial because we see the tendency of the financial institutions for risk sharing. On the other hand The FI’s like IFC, IBRD and IRD are still bullish for good projects and good transactions in the country.
Know your client would be very important going forward in the country because there is a list of some companies that were linked to terrorist groups so I highly recommend you that do your client checks before giving or extending any insurance or loans to any group in the country.
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