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Turkey Letter: 24 August 2015

 

Foreign Policy

  • Turkish FM announces deal against ISIL, US denies it
  • More needed from Turkey in Islamic State fight: U.S. defense chief
  • US to send another Aegis-equipped ship to Mediterranean

Economy and Energy

  • Lira at 3 to the Dollar Brings Turkey Recovery No Closer
  • Turkey Bond Weekly Slide Shows Growing Pressure for Higher Rates
  • Turkish Lira Tumbles After Central Bank Decisions
  • Turkey Downgrade Already in the Price as Bonds Trade Like Junk
  • Turkey’s banks need to prepare for slower lending growth: ECB paper
  • Turkey Considers Relaxing Card Limits to Combat Shadow Spending

Domestic Politics

  • Turkey’s President Calls Snap Election
  • Eight soldiers killed in southeast Turkey bomb attack – military
  • HDP co-chair Demirtaş calls on PKK to halt violence ‘without ifs or buts’
  • Mourners slam Erdoğan, Turkish gov’t at funeral ceremonies for slain soldiers
  • CHP Vows to Resolve Kurdish Issue on Basis of Democracy, Justice
  • Two soldiers killed after convoy hits explosives in southeast Turkey

Foreign Policy

Turkish FM announces deal against ISIL, US denies it

As technical talks have been concluded, Turkey and the United States air forces can strike jihadists in Syria soon, Turkish Foreign Minister has said, but the White House has quickly denied it.

Hurriyet Daily News, Turkish FM announces deal against ISIL, US denies it, August 24, 2015


More needed from Turkey in Islamic State fight: U.S. defense chief

Turkey needs to do more in the fight against Islamic State militants and has indicated it is willing to go beyond its recent decision to allow U.S. planes to conduct air strikes from Turkish bases, Defense Secretary Ash Carter said on Thursday.

Reuters, More needed from Turkey in Islamic State fight: U.S. defense chief, August 20, 2015


US to send another Aegis-equipped ship to Mediterranean

The U.S. will send an additional anti-missile Aegis-equipped ship to the Mediterranean this fall to defend Turkey and other NATO allies against ballistic missile threats, U.S. Navy spokeswoman Cmdr. Pamela Rawe told Anadolu Agency on Aug. 19.

Hurriyet Daily News, US to send another Aegis-equipped ship to Mediterranean, August 19, 2015


Economy and Energy

Lira at 3 to the Dollar Brings Turkey Recovery No Closer

The lira has been in free fall since Turkey’s governing AK Party said last week it had failed to form a coalition government, putting the country on course for a second general election in six months.

Bloomberg, Lira at 3 to the Dollar Brings Turkey Recovery No Closer, August 20, 2015


Turkey Bond Weekly Slide Shows Growing Pressure for Higher Rates

Turkish bonds fell, pushing two-year yields to the highest in more than a year, amid speculation higher borrowing costs will be needed to shore up the lira.

Bloomberg, Turkey Bond Weekly Slide Shows Growing Pressure for Higher Rates, August 21, 2015


Turkish Lira Tumbles After Central Bank Decisions

Turkey’s lira sank to record lows on Tuesday as the central bank’s interest-rates decision and plan to simplify its monetary policy failed to stem deteriorating confidence in the Turkish economy.

The Wall Street Journal, Turkish Lira Tumbles After Central Bank Decisions, August 18, 2015


Turkey Downgrade Already in the Price as Bonds Trade Like Junk

Turkey’s debt has all the characteristics of junk bonds — without the rating.

Bloomberg, Turkey Downgrade Already in the Price as Bonds Trade Like Junk, August 21, 2015


Turkey’s banks need to prepare for slower lending growth: ECB paper

Aug 20 Turkey’s banking system needs to prepare for an end to rapid lending growth and faces some risk from rising external funding needs, while western Balkan banks may struggle with bad loans, an ECB paper says.

Reuters, Turkey’s banks need to prepare for slower lending growth: ECB paper, August 20, 2015


Turkey Considers Relaxing Card Limits to Combat Shadow Spending

Turkey may relax curbs on credit card usage and loans as consumers find less transparent ways to maintain their spending habits.

Bloomberg, Turkey Considers Relaxing Card Limits to Combat Shadow Spending, August 24, 2015


Domestic Politics

Turkey’s President Calls Snap Election

Turkey’s president on Monday called early elections, fueling political uncertainty as the country grapples with national security threats and a mounting market selloff.

The Wall Street Journal, Turkey’s President Calls Snap Election, August 24, 2015


Eight soldiers killed in southeast Turkey bomb attack – military

Eight Turkish soldiers were killed in a bomb attack on their vehicle by Kurdish militants in southeast Turkey on Wednesday, the military said, intensifying conflict after the breakdown of a two-year ceasefire last month.

Reuters, Eight soldiers killed in southeast Turkey bomb attack – military ,August 19 2015


HDP co-chair Demirtaş calls on PKK to halt violence ‘without ifs or buts’

The Peoples’ Democratic Party (HDP) has called on the outlawed Kurdistan Workers’ Party (PKK) to halt a month of violence against security forces “without ifs or buts.”

Hurriyet Daily News, HDP co-chair Demirtaş calls on PKK to halt violence ‘without ifs or buts’, August 23, 2015


CHP Vows to Resolve Kurdish Issue on Basis of Democracy, Justice

The incumbent Justice and Development Party (AKP) government dragged the country into terror and violence, the Republican People’s Party (CHP) has said, vowing to resolve the Kurdish issue on the basis of “democracy and justice” by coming to power in the upcoming early election.

Hurriyet Daily News, CHP Vows to Resolve Kurdish Issue on Basis of Democracy, Justice, August 24, 2015


Mourners slam Erdoğan, Turkish gov’t at funeral ceremonies for slain soldiers

A lieutenant colonel’s angry rebuke during the funeral ceremony for his soldier brother has been added to the increasing number of protests by mourners accusing President Recep Tayyip Erdoğan and the government over the spike in violence ahead of early elections in Turkey.

Hurriyet Daily News, Mourners slam Erdoğan, Turkish gov’t at funeral ceremonies for slain soldiers, August 24, 2015


Two soldiers killed after convoy hits explosives in southeast Turkey

Two Turkish soldiers were killed and three wounded on Monday when the vehicle they were traveling in hit explosives buried in the road, the latest attack following the collapse of a ceasefire with Kurdish militants, security sources said.

Reuters, Two soldiers killed after convoy hits explosives in southeast Turkey, August 24, 2015