ELECTRONICS GIANT VESTEL IN SEVERE FINANCIAL DISTRESS
Electronics and home appliances exporter Vestel Elektronik faces growing financial pressure as Moody’s cut its long-term rating and warned of a very high risk of default.
Analysis
In-Depth Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
NO APPARENT RISK OF GREY LIST FOR TURKEY
The Financial Action Task Force (FATF) has released its 5th Round Mutual Evaluation Report for Turkey, confirming that the country faces no risk of returning to the grey list, the Finance Ministry said.
CENTRAL BANK HOLDS MAIN INTEREST RATE AT 37% AS EXPECTED
Turkey's central bank held its benchmark interest rate steady on Sept. 10, matching market expectations as energy cost pressures continue to pose risks to the inflation outlook.
ANKARA STEPS UP THE PRESSURE ON WASHINGTON
Unwilling to risk the Republicans losing their representative power, Ankara has accelerated its efforts to push the US to lift its arms embargo.
DISARMAMENT DELAYS COULD DERAIL DEM PARTY CONGRESS PLANS
The PKK’s disarmament, which has now stretched beyond a year and a half, has stalled at precisely the most critical stage — the point at which the state is expected to take action. Unless the government softens its precondition that “the disarmament process must first be fully completed,” the expected legal steps will likely be postponed until the new legislative year in October. The risks posed by delay are being discussed and meanwhile it also appears set to derail the transformation plans of the DEM Party, which has already started the countdown to a congress.
DEFINING RECIPROCITY AND THE MADE IN EUROPE CHALLENGE
Concerned by the risk of being excluded from trade with Europe, the AKP government is planning to amend the public procurement law.
U.S. TARIFF MOVE PUTS TURKEY’S IRAN TRADE AT RISK
A new U.S. tariff move targeting countries that do business with Iran is placing billions of dollars of Turkey’s trade at risk, with exports to the United States and energy trade with Iran most exposed.
MARKETS RECOVER AFTER CHP DECISION
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.
CHP FACES NEW SETBACK AS COURT HALTS ISTANBUL CONGRESS PROCESS
Turkey’s main opposition CHP suffered a fresh blow as a court dissolved its largest provincial board in Istanbul over cash payment claims. The party now awaits either a Sept. 5 ruling by the Supreme Election Board (YSK) or a Sept.15 court hearing that could unseat Chair Özgür Özel’s administration. The CHP, which came to power at a November 2023 congress with the slogan “Change,” now risks being replaced by the team of former chair Kemal Kılıçdaroğlu. The 45th Civil Court of First Instance ruled that irregularities in the October 2023 Istanbul provincial congress were “approximately proven.” The court suspended provincial chair Özgür Çelik, the executive and disciplinary boards, and 196 delegates. Attention has now turned to another court set to review the CHP’s 2023 congress in Ankara. “The Istanbul decision is null and void. We do not recognize it,” said Özel, vowing not to hand over CHP’s Istanbul building to the appointed administration. The Istanbul administration also started a stage-in protest in front of the building for 24 hours.
LOZAN
Say it with the right nasal twang — Lozann — and you’ll have unlocked the secret handshake of the Turkish political subconscious. Treaty of 1923. Not a historical detail but a question of national identity, psychological posture, and dinner-party risk assessment.