Page 11 - TURKRptDec19

Turkey to use the central bank to shore up its budget deficit. It has widened this year amid efforts to get the recession-hit economy back on track.
The valuation account contains unrealised gains and losses arising from the revaluation of foreign currencies, gold and other assets and liabilities, based on price changes of the lira and gold on international markets.
It has been subject to volatility given sharp moves in the Turkish lira, which lost as much as half its value during the currency crisis of summer 2018. The account was worth TRY45bn at the end of last year and TRY55bn at end-2017.
"We see inexplicable changes in the balance sheet, and we had seen similar changes in the transfer of contingency [legal] reserves. We interpret this as a preparation to transfer [funds] to the Treasury," a banker, who requested anonymity, was cited as saying by Reuters.
If a similar trend continued through year-end in other budget items, the central bank's profit will rise by 15-22 billion lira which could be transferred to the Treasury, the banker also reportedly added.
Turkey's parliament passed a law in July allowing the central bank's legal reserves, estimated at TRY40bn, to be transferred to the Treasury.
"If the inexplicable changes in the analytical balance sheet of the central bank continues, the profit transfer to the Treasury may reach 60-70 billion lira within a few months, and may be [used] to finance the budget," a second banker was quoted as saying.
2.6​ ​Pro-Kurdish opposition party calls for early election
Turkey's pro-Kurdish opposition party on November 20 called for an early election but said it had opted against a plan to withdraw its MPs from parliament to protest against the government's dismissal of dozens of its mayors who were elected earlier this year.
Authorities have removed 24 mayors of the Peoples' Democratic Party (HDP) since August, replacing them with government appointees. They took the action after claiming links to terrorism that threatened national security.
Several HDP members urged the party to withdraw from the parliament or from local assemblies which the party still controls.
The HDP said in a statement that the AKP and its ultra-nationalist ally, the Nationalist Movement Party (MHP), were "stealing the will of the peoples" by appointing trustees in place of the mayors.
"We say 'early election' for the peoples of Turkey to be rid of the AKP-MHP authority. This is a call for confrontation. We're saying bring it on," the party said.
The former co-leaders of the HDP have both been jailed since 2016 on terrorism charges.
Moves against the HDP were stepped up as the Turkish military in early October invaded northeastern Syria to pursue the YPG Kurdish militia, which Ankara also accuses of ties to the PKK.
The HDP is the only party in the Turkish parliament that opposed the offensive.
11​ TURKEY Country Report​ December 2019 ​ ​www.intellinews.com