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Turkey Letter: 17 September 2018

Foreign Policy:

  • Russia and Turkey Agree to Create Buffer Zone in Syria’s Idlib
  • Turkey Tries to Forestall Syrian Offensive
  • Turkey Deploys Observers to Russian-Chinese Military Exercise Vostok
  • Turkey Defiant on Deal with Russia Despite U.S. Threat to Cancel Sale of F-35s

Economy & Energy:

  • Turkey Takes Action on Strained Economy with Big Rate Rise
  • Turkey Allows Companies to Exclude Forex Losses from Bankruptcy Calculations
  • Turkey Planning Help for Banks on Anticipation of Bad Loans
  • Turkey to Freeze New Government Projects, Erdogan Says
  • Erdogan Warns He Won’t Tolerate High Rates for Long
  • Erdogan Names Himself Turkey Wealth Fund Chairman

Domestic Politics:

  • Erdogan Calls for Investigation into Opposition Role at Isbank
  • Turkey Security Forces Quash Airport Protest, Detain Workers

FOREIGN POLICY:

Russia and Turkey Agree to Create Buffer Zone in Syria’s Idlib
Russian and Turkish troops are to enforce a new demilitarized zone in Syria’s Idlib region from which “radical” rebels will be required to withdraw by the middle of next month, Russian President Vladimir Putin said on Monday after a meeting with his Turkish counterpart.
Reuters, Russia and Turkey Agree to Create Buffer Zone in Syria’s Idlib, September 17, 2018


Turkey Tries to Forestall Syrian Offensive
Turkey has been trying to persuade armed groups to evacuate Idlib province to avert a fight that the U.N has said threatens to create the worst humanitarian catastrophe of the 21st century.
Wall Street Journal, Turkey Tries to Forestall Syrian Offensive, September 14, 2018


Turkey Deploys Observers to Russian-Chinese Military Exercise Vostok
Turkey has decided to deploy military observers to a Russian-Chinese military exercise taking place in Siberia following Moscow’s official invitation as a full and active participant.
Hurriyet, Turkey Deploys Observers to Russian-Chinese Military Exercise Vostok, September 12, 2018


Turkey Defiant on Deal with Russia Despite U.S. Threat to Cancel Sale of F-35s
Russia will deliver its top-line air defense system to Turkey by the middle of next year, according to officials from both countries, as Turkey moves ahead with the purchase despite threats by the United States to cancel its own sale of F-35 fighter jets to its NATO ally.
The Washington Post, Turkey Defiant on Deal with Russia Despite U.S. Threat to Cancel Sale of F-35s, September 12, 2018


ECONOMY & ENERGY:

Turkey Takes Action on Strained Economy With Big Rate Rise
Turkey’s central bank sharply raised interest rates—defying President Recep Tayyip Erdogan’s demand to cut them—in an attempt to counter the country’s economic problems and reverse growing investor aversion to emerging-market economies.
Wall Street Journal, Turkey Takes Action on Strained Economy With Big Rate Rise, September 13, 2018


Turkey Allows Companies to Exclude Forex Losses from Bankruptcy Calculations
Turkish companies will no longer be required to count foreign-currency losses when assessing whether to file for bankruptcy, according to a legal change introduced at the weekend, a move that could deepen concern about private sector debt.
Reuters, Turkey Allows Companies to Exclude Forex Losses from Bankruptcy Calculations, September 17, 2018 


Turkey Planning Help for Banks on Anticipation of Bad Loans
The Turkish government will unveil measures to help banks tackle the expected pile-up of bad loans resulting from the lira’s plunge and soaring interest rates, according to people with knowledge of the matter.
Bloomberg, Turkey Planning Help for Banks on Anticipation of Bad Loans, September 17, 2018


Turkey to Freeze New Government Projects, Erdogan Says
Turkey is freezing new government investment projects, President Tayyip Erdogan said on Friday, to rein in spending and stem double-digit inflation after a 15-year construction boom fueled by debt.
Reuters, Turkey to Freeze New Government Projects, Erdogan Says, September 14, 2018


Erdogan Warns He Won’t Tolerate High Rates for Long
President Recep Tayyip Erdogan on Friday warned he wouldn’t tolerate higher lending rates for very long, challenging the country’s central bank and raising the stakes on an economic plan meant to calm the country’s currency crisis.
Wall Street Journal, Erdogan Warns He Won’t Tolerate High Rates for Long, September 14, 2018


Erdogan Names Himself Turkey Wealth Fund Chairman
President Recep Tayyip Erdogan appointed himself chairman of Turkey’s sovereign wealth fund and got rid of the entire management staff that had presided over two years of inaction.
Bloomberg, Erdogan Names Himself Turkey Wealth Fund Chairman, September 12, 2018


DOMESTIC POLITICS:

Erdogan Calls for Investigation into Opposition Role at Isbank
Turkish President Tayyip Erdogan said authorities should look into members of the opposition who serve on the board of Isbank, Hurriyet newspaper said on Monday, knocking the shares of the country’s largest listed lender.
Reuters, Erdogan Calls for Investigation into Opposition Role at Isbank, September 17, 2018


Turkey Security Forces Quash Airport Protest, Detain Workers
Hundreds of workers who started a protest against conditions at the construction site of Istanbul’s new airport were detained over the weekend, as the clock ticks toward the planned Oct. 29 opening of the facility.
Bloomberg, Turkey Security Forces Quash Airport Protest, Detain Workers, September 17, 2018