Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
An Istanbul court formally arrested Fatma Betül Sayan Kaya early Nov. 6, making her the first former minister to face formal arrest in the AKP’s 24 years in power. Sayan Kaya, a former AKP deputy chair and Family and Social Policy Minister, is the most senior figure yet caught up in a scandal that has rattled financial markets since September.
The financial fallout from the multi-billion-dollar investment fund scandal is rapidly spilling beyond capital markets into the broader real economy.
Sweeping reforms to capital markets institutions will hinge on a State Audit Council (DDK) report on the multi-billion-dollar investment fund scandal, with President Recep Tayyip Erdoğan awaiting its findings before taking action.
With the investment fund scandal still unfolding, a new allegation has come to light: companies were asked for bribes to secure approval from the Capital Markets Board (SPK) to go public.
For the first time in nearly five years, Turkey’s annual inflation rate slipped below 30%, giving the central bank room to consider easing monetary policy at its meeting on Oct. 22.
In December of last year, the Chinese carmaker SWM Motors began production in Eskişehir, with ambitious plans. Annual production of 20,000 to 25,000 vehicles was to grow substantially and the factory was eventually to serve as a base for exports to the Balkans and neighboring markets.
The Borsa Istanbul’s benchmark BIST 100 index entered a technical bear market at the end of September, marking its worst monthly performance since the 2008 global financial crisis.
The government is preparing comprehensive reforms across its financial regulatory bodies following the massive investment fund crisis that shook domestic markets.
Turkish exporters face market loss and price disruption as China redirects $350 billion in production away from the US toward markets where Turkish goods are sold, business leaders warned.
The central bank and other regulator bodies stepped in to stabilize financial markets after alleged market manipulation, fraud and fund mismanagement sparked a major equity sell-off and corporate defaults.
Turkey's Capital Markets Board (SPK) is tightening its grip on investment funds and the stock market under new chair Mahmut Sütcü in response to domestic and international calls for a clampdown on manipulation.
The postponement of the decision in the lawsuit to cancel the CHP's 38th regular congress brought short-term relief to the markets. The BIST 100 index gained 5% following the decision. The banking index also gained over 6%. The risk premium reached 261 basis points, the lowest in about six months.