News Scan for Turkey, July 19th 2016
Turkey sends formal request for extradition of Gulen from US
Turkish Prime Minister Binali YILDIRIM confirmed on Tuesday that an official request had been sent to the United States for the extradition of Fethullah Gulen.
The US-based cleric, who has been living in the United States since 1999, was named by President Recep Tayyip Erdogan as the orchestrator of Friday’s coup attempt in the country. Prime Minister YILDIRIM also criticised the US demand for provision of ‘substantial evidence’ on the involvement of the exiled cleric.
The Turkish prime minister called on the United States to “give up protecting that traitor” during his speech. He added “We have no hesitation about the origin (of the coup). It is crystal clear. However, we will provide them with a pile of evidence.”
http://www.trtworld.com/turkey/turkey-sends-formal-request-for-extradition-of-gulen-from-us-146849
Moody’s reviews Turkey for downgrade after failed coup
Sovereign debt rater Moody’s said late July 18 it was reviewing Turkey’s credit rating for a possible downgrade after the attempted military coup on the weekend.
A one-notch downgrade from the current Baa3 rating would push the government’s rating down into “speculative” or junk status. “Despite the coup’s failure, Moody’s considers its occurrence a reflection of broader political challenges, as associated credit risks remain elevated,” Moody’s said.
“We believe that the most recent increase in domestic political uncertainty, and most specifically the attempted coup, has the potential to significantly affect the country’s growth trajectory negatively, a risk that we will evaluate during the review.”
http://www.hurriyetdailynews.com/
US embassy denies risk to Turkey’s NATO membership
The US embassy in Ankara on Monday rejected reports which said US Secretary of State John Kerry had warned Turkey that its NATO membership was at stake over its post-coup crackdown, Daily Sabah reported.
The Washington Post had published a story in which John Kerry was “cautioning that Turkey’s Nato membership could be jeopardised if it abandons democratic principles and the rule of law in a post-coup crackdown.”
Several Western news outlets including Voice of America News, The Independent and Portland Press Herald later carried the same story.
http://www.trtworld.com/turkey/us-embassy-denies-risk-to-turkeys-nato-membership-146169
Turkey’s central bank cuts upper band of interest rates further by 25 base points
The Central Bank of the Republic of Turkey (CBRT) cut the upper band of the interest rate corridor (the marginal funding rate) by another 25 points to 8.75 percent in line with markets’ expectations on Tuesday, while it held the policy rate (one-week repurchase agreement rate) and the lower band of the corridor (borrowing rate) at 7.50 percent and 7.25 percent, respectively.
This means the CBRT has lowered the upper band 2.50 percent in total over the six months preceding July. Also, with this latest move, the CBRT obtained the narrowest interest rate corridor, which it has been using as a monetary policy strategy since 2010.
Economy Minister Nihat Zeybekci told Reuters in an interview late on Monday he expected the central bank to continue with “bold” rate cuts, adding he would understand if it hesitated following Friday’s failed coup.
http://www.dailysabah.com/economy/2016/07/19/turkeys-central-bank-cuts-upper-band-of-interest-rates-further-by-25-base-points
Deputy PM Şimşek says attempted coup’s impact on Turkish economy will be ‘short-lived’
The Turkish economy will not suffer permanently from the failed coup attempt on July 15, despite a short-lived, downward impact on growth, Deputy Prime Minister Mehmet Şimşek said on July 18.
He also said Turkey’s macroeconomic fundamentals were solid and the government would swiftly shift its focus back to carrying out structural reforms, in a televised interview on Bloomberg HT.
“The coup attempt will not make any permanent impact on the Turkish economy,” Şimşek said, noting that political stability and democracy had been strengthened in the country following the failed coup attempt and it was easier to make reforms in this environment.
Şimşek added “We had a bad dream and it was left behind… Our message is very clear, there is no need to panic. Our growth rate, foreign balances or other macro fields were not damaged,” added Şimşek.
http://www.hurriyetdailynews.com/deputy-pm-simsek-says-attempted-coups-impact-on-turkish-economy-will-be-short-lived.aspx?pageID=238&nID=101740&NewsCatID=344
Istanbul, Izmir top the global property value increase index
lobal list, focused on changes in property values in 156 cities, named three Turkish cities among the top 20.
The index, prepared by British real estate company Knight Frank, placed Turkey’s largest city Istanbul at second place, with an increase in property values by 25 percent, while the global average stood at 4.4 percent. In Turkey, Izmir followed Istanbul with 16.5 percent increase in property values and placed sixth spot in the index. The capital Ankara stood at 13th place with a 12.4 percent increase.
Izmir Chamber of Real Estate Brokers Mesut Güleroğlu said that Izmir now outranked Ankara as investors shifted their focus from Istanbul, due to very high increases.
This is a news-scan from major Turkish papers and internet sites. However, we do not verify above stories neither do we vouch for their accuracy.
19.07.2016
compiled by Editor BTT
