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Turkey Letter 1 July 2019 

Foreign Policy: 

  • Turkey says 6 citizens held in Libya have been freed 
  • Turkey’s Erdogan: Russian missile defense system to arrive in 10 days: media 
  • Trump Seeks Resolution with Turkey Over Russian Missile Dispute 
  • Turkey says observation post in Syria’s Idlib attacked, no casualties 
  • Turkey’s Erdogan says U.S. will not impose sanctions over Russian missile deal 

Economy & Energy: 

  • Turkish assets rally after Trump comments on missile purchase 
  • Turkey Hooked on Stimulus as Budget Deficits Seen Stuck Over 3% 
  • Turkey resumes push to boost budget with Central Bank’s cash 

Domestic Politics: 

  • Former Turkish PM Davutoglu slams Erdogan’s AKP after Istanbul defeat 
  • Turkish court rules to keep U.S. consulate employee in custody 
  • Turkey’s leader vows to heed ‘messages’ of Istanbul election 
  • Turkish court frees US Consulate worker from house arrest 

 

Foreign Policy 

Turkey says 6 citizens held in Libya have been freed 

A Turkish official says six Turkish nationals who were held by a Libyan force have been released. 

Washington Post, Turkey says 6 citizens held in Libya have been freed, 1 July 2019 


Turkey’s Erdogan: Russian missile defense system to arrive in 10 days: media 

Turkey’s President Tayyip Erdogan said Russian S-400 defenses would begin arriving within 10 days, Turkish media reported, setting the clock ticking on possible U.S. sanctions after his warm meeting with President Donald Trump on Saturday. 

Reuters, Turkey’s Erdogan: Russian missile defense system to arrive in 10 days: media, 30 June 2019 


Trump Seeks Resolution with Turkey Over Russian Missile Dispute 

President Trump said he is considering ways to resolve a problematic situation borne out of Turkey’s decision to purchase advanced Russian air-defense missile systems the Pentagon regards as a threat to North Atlantic Treaty Organization’s security. 

The Wall Street Journal, Trump Seeks Resolution With Turkey Over Russian Missile Dispute, 29 June 2019 


Turkey says observation post in Syria’s Idlib attacked, no casualties 

A Turkish observation post in the Idlib region of northern Syria was attacked by mortar fire launched from territory controlled by Syrian government forces, Turkey’s defense ministry said on Saturday, adding that there were no casualties. 

Reuters, Turkey says observation post in Syria’s Idlib attacked, no casualties, 29 June 2019 


Turkey’s Erdogan says U.S. will not impose sanctions over Russian missile deal 

Turkish President Tayyip Erdogan said on Saturday the United States did not plan to impose sanctions on Ankara for buying Russian defense systems, after the U.S. president said Turkey had not been treated fairly over the contract. 

Reuters, Turkey’s Erdogan says U.S. will not impose sanctions over Russian missile deal, 28 June 2019 


Economy & Energy 

Turkish assets rally after Trump comments on missile purchase 

Turkey’s currency and stock market started the second half of 2019 on a strong note after the US president said he wanted to treat the country fairly over its plan to purchase a Russian missile system. 

Financial Times, Turkish assets rally after Trump comments on missile purchase, 1 July 2019 


Turkey Hooked on Stimulus as Budget Deficits Seen Stuck Over 3% 

The spending spigot Turkey has kept open during the election season will push the budget deficit to double the official target this year as the economy sputters, according to analysts surveyed by Bloomberg. 

Bloomberg, Turkey Hooked on Stimulus as Budget Deficits Seen Stuck Over 3%, 1 July 2019  


Turkey resumes push to boost budget with Central Bank’s cash 

Turkey’s government is planning to use central bank cash to help finance its widening budget deficit, just weeks after policy makers refrained from proposing a similar measure for fear it could roil financial markets. 

Bloomberg, Turkey resumes push to boost budget with Central Bank’s cash, 27 June 2019  


Domestic Politics 

Former Turkish PM Davutoglu slams Erdogan’s AKP after Istanbul defeat 

A former Turkish prime minister and close ally of President Tayyip Erdogan on Saturday harshly criticized the ruling AK Party after a stinging electoral defeat in Istanbul last week that was widely seen as ominous for Erdogan at national level. 

Reuters, Former Turkish PM Davutoglu slams Erdogan’s AKP after Istanbul defeat, 30 June 2019 


Turkish court rules to keep U.S. consulate employee in custody  

A Turkish court ruled on Friday to keep an employee of the U.S. consulate in custody as his trial on espionage charges continues, in a case that has damaged relations between Washington and Ankara. 

Reuters, Turkish court rules to keep U.S. consulate employee in custody, 28 June 2019  


Turkey’s leader vows to heed ‘messages’ of Istanbul election 

In his first public appearance since a crushing defeat in a rerun election for mayor of Istanbul, Turkish President Recep Tayyip Erdogan on Tuesday vowed to draw lessons and make adjustments in line with “the messages given by the people.” 

AP, Turkey’s leader vows to heed ‘messages’ of Istanbul election, 25 June 2019 


Turkish court frees US Consulate worker from house arrest 

A court in Istanbul has released an employee of the U.S. Consulate from house arrest for health reasons. The court on Tuesday ruled, however, that Nazmi Mete Canturk should continue to be barred from leaving the country pending the outcome of his trial. 

AP, Turkish court frees US Consulate worker from house arrest, 25 June 2019