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on the Turkish banks’ balance sheets, equivalent to 8% of the total loan market.
“FX volatility makes it more pressing for Turkish banks to want to offload,” Beckett was further quoted as saying. “That also means that, unlike Europe, amend and extend does not work in Turkey as currency volatility is a big issue.”
Foreign firms see opportunities in Turkey’s energy sector, said to account for around half of the $8bn in debt. “Electricity tariffs have gone up 30% over the past two quarters since the elections in late March,” Joseph Julian Co-Head Middle East, Turkey & Africa at Houlihan Lokey, an investment bank, told the news agency. “So, investors are starting to feel like this may not be a bad time to begin to look at distressed assets and loans in the energy sector.”
Some investors remain wary of committing out of anxiety that meaningful US sanctions could still hit Turkey over its Syria invasion and other points of dispute, such as the indictment of state lender Halkbank for allegedly taking part in Iran sanctions-busting.
8.1.5 NIMs & CARs
8.1.6 Banks specific issues
● Garanti Bank
59 TURKEY Country Report December 2019 www.intellinews.com
