NEWS SCAN for Turkey – Sept 17th, 2013
Down below you will find a summary of topics from major Turkish papers and internet sites
Turkey shoots down Syrian helicopter at border
It was announced by Deputy Prime Minister Bülent Arınç that the Turkish Air Force had shot down a Syrian helicopter on Sept. 16 at the border after the helicopter violated Turkish airspace.
Arınç added that Turkish military aircraft taking off from a base in Malatya had shot the M-17 helicopter after it allegedly continued to violate Turkish airspace despite repeated warnings, after which the chopper fell onto Syrian soil.
“It The helicopter violated Turkey’s border for two kilometers. It was repeatedly warned by air defense elements. Upon the continuation of the violation, it was determined that it fell into Syrian territory after being shot at 2.25 p.m. with a missile by our planes taking off from Malatya,” Arınç said.
The deputy prime minister said the initiative taken by the Turkish Armed Forces (TSK) to shoot down the Syrian helicopter was based on the rules of engagement with Syria.
Koç Holding Chairman says he hopes Turkey will overcome the destabilized period
Referring to the claims that his group actively supported the Gezi Park protests of early summer, Koç Holding Cahirman Mustafa KOÇ said the opening of the Divan Hotel’s doors to demonstrators who were escaping from the police had only been out of humanitarian concerns.
“There are lots of allegations like there is a big conspiracy being put on against Turkey and that we are a part of it. We are asserting at every opportunity how important domestic peace and economic and social stability is for our country’s future and prosperity and hence the future of the business world. Therefore, we cannot allow comments aligning our group with movements that target Turkey’s stability to stand,” Koç said.
While clashing with the police forces, some protestors had sheltered in the Divan Hotel. The hotel, which is adjacent to the park, also provided food and place to stay for the demonstrators during their sit-in demonstration in the park. During those dramatic days, the holding issued a statement to refute the claims of its direct involvement in the protests that spread across Turkey, becoming a broader, anti-government demonstration. Prime Minister Recep Tayyip Erdoğan has named the Koç group among the perpetrators and vowed to take action against them. The subsequent crackdown on a number of the group’s giant companies, including TÜPRAŞ, Aygaz and Opet Petrolcülük following some routine inspections; the government’s cancellation of the national warship project (MİLGEM) contract, which had been awarded to Koç Holding subsidiary RMK Marine for $2.5 billion in January and statements that the Kalamış Marina tender would be renewed, taking away Koç’s right of operation there, all raised questions whether the government had burned the bridges with the country’s wealthiest conglomerate. The group had largely kept quiet about it until Mustafa Koç’s remarks on Monday.
Turkish private sector’s foreign debt increases to $183 billion
The Turkish private sector’s foreign debt increased by $12.8 billion to reach a total of $183 billion between the end of 2012 and July, according to data released by the central bank on Tuesday.
The private sector’s total long-term foreign debt rose by $6.9 billion, reaching $145.89 billion, while its short-term foreign debt — not including trade credit — increased by $5.9 billion, hitting $37.27 billion, according to the Central Bank of Turkey’s report for July 2013.
The sector’s long-term foreign debt level in July represented a 5 percent increase compared to the end of 2012 and a 2 percent increase compared to the previous month. Meanwhile, its short-term debt level, excluding trade credit, rose by 18.7 percent compared to the end of 2012 and 0.1 percent compared to the previous month. Of the sector’s total long-term foreign debt, 58 percent is held in dollars, while 34.6 percent is held in euros and 7.4 percent is in other currencies, the report indicated.
Deputy PM Babacan says domestic consumption-led growth not desired economic picture
Deputy Prime Minister Ali Babacan, commenting on Turkey’s second quarter growth on Saturday, said domestic consumption and public spending drove growth in the second quarter, which is not the economic picture the government desires to see.
Speaking to reporters at the World Economic Forum held in China, Babacan evaluated the effect of the second quarter growth rate on overall growth for the year, stating, “The composition of growth does not make us happy.” Noting that consumption-led growth also increases the current account deficit (CAD), he said: “We achieved 4.4 percent growth in the second quarter but the major source of the expansion was domestic spending while some of it was public spending. There was a decline in private sector spending and net exports. This is the opposite of the economic picture we want to see in Turkey. When growth is driven by private sector spending and exports, the effect of growth on the CAD is not negative. However, domestic consumption-led growth raises the CAD.”
Responding to the questions of reporters on CAD data for July, which was above expectations, Babacan said it is difficult to form opinions on data from only one month. He noted the importance of looking at the data aside from the gold trade, adding: “The gold trade with Iran had already made it difficult for us to read both foreign trade and CAD statistics in the last couple of years. When the gold trade data is left out of figures, a much healthier economic picture is visible as the CAD is seen to be falling for the past three years. This is a result of measures taken by the government.” Babacan also expressed that it is not clear how the data for the rest of the year will turn out, but explained that if Europe recovers in the second half and Turkey’s exports to Europe achieve a better figure, then growth would bring very supportive results for the economy. “We also predict the annual growth rate for 2013 to be between 3-4 percent, but there are many unknown factors that can affect growth.”
Turkish Central Bank leaves key rates unchanged
Turkey’s Central Bank held fire on any further steps to support the lira currency at its September meeting on Sept. 17, keeping all interest rates on hold while also opting against changes to reserve requirements.
The lira – still down more than 10 percent since May – is among the most high-profile victims of a shift in global capital prompted by the Fed’s move towards reining in years of ultra-easy monetary policy.
Turkey is particularly vulnerable because it is heavily dependent on foreign inflows to finance its current account deficit, running at over 7 percent of national output. But Governor Erdem Başçı has said he would not need to raise central bank rates outright to defend the lira in a policy mix that aims to support a return to the higher growth rates Turkey achieved in 2010-11.
The bank kept its main policy rate, the one-week repo rate, at 4.50 percent, its borrowing rate at 3.50 percent and its overnight lending rate at 7.75 percent, it said in a statement after its monthly monetary policy committee meeting. It also made no immediate changes to how much foreign currency banks have to hold in reserve. A reduction had been expected, which would have supported the lira by boosting the amount of dollars and euros in circulation and which had been forecast by some economists.
17.09.2013
SOURCE: MEDIA
We do not verify above stories neither do we vouch for their accuracy.
