Page 9 - TURKRptJul21

2.4 Public banks’ share in Turkey’s domestic bonds at record high
The share of Turkey's public banks in the country's domestic sovereign bonds stock reached 36.4% at end-April, extending the run of all-time highs recorded since last year.
In July 2020, the figure surpassed the 30% level. It has consecutively smashed through record levels ever since.
Meanwhile, the foreign investor share in the market hit a record low level of 3% in September last year before gradually recovering to 4.7% in February. The figure stood at 3.7% at end-April.
Since 2019, it has been hard to describe the local domestic government bond market as a functioning market. The rising share of FX-denominated domestic borrowing is another woe.
Nevertheless, the government has maintained absolute control over the local finance industry. Thus, domestic borrowing has not proved to be a problem.
Despite government pressure exerted on private lenders, the weighting of the public banks has been on the rise. The state banks’ loan volume reached 48% of Turkey's total banking industry loans at end-April, while state banks’ equity stood at 38% of total Turkish banking industry equity.
Following the currency shock of 2018, the capital of the public banks was hiked via the exchanging of government papers among the Treasury, the Turkey Wealth Fund (TWF/TVF) and banks.
As of June 3, the state banks’ registered FX-denominated non-performing loan (NPL) stock stood at $61mn.
Yet the amount of a single controversial loan, extended by Ziraat Bank, stands at more than 10 times this figure. Ziraat is yet to provide a payment document on the instalments of a $750mn loan extended to Demiroren Holding for the acquisition of Dogan Media.
2.5 Business and consumer confidence surveys
2.6 Politics - shorts
1% of Turks are in jail or on probation. Turkey is the leader of Europe in this field, according to European Council report.
12 cases of journalists are currently prosecuted in Turkey under terrorism legislation.
Despite public reaction, the Georgian government, the European Bank for Reconstruction and Development (EBRD), Turkish President Recep Tayyip Erdogan and the World Bank are jointly pushing for the construction of the Namakhvani hydropower plant HPP proposed for western Georgia to be built by Turkey’s ENKA (ENKAI).
A Swedish court dismissed a challenge by Turkey’s Akfel Gaz in a price dispute with Russia’s Gazprom.
9 TURKEY Country Report July 2021 www.intellinews.com