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Turkey’s banking industry is again the main focus. “Patience of shareholders in Turkey’s private lenders is tested by the Erdogan administration's banking sector strategy.”
Turkey’s BDDK banking watchdog has amended the asset ratio calculation methodology for the country’s banks that it introduced in April. Its move appears to have been made because the Turkish banking industry played the initial regulation like a fiddle, foiling the regulators.
The BDDK sent a “text” regarding asset ratio calculations to local lenders to “call their attention” to “three issues”. Turkish lenders are buying inflation-indexed bonds with negative yields in the face of pressure to raise their government bond holdings in order to comply with recently adjusted asset ratio regulation.
Turkey’s three state-owned lenders—Ziraat Bank, Vakifbank and Halkbank—now account for 48% of loans on the Turkish market, up from 30% at the end of 2014.
State-trio launched a new stimulus package that includes cheap consumer loans for housing, locally produced cars, consumer electronic goods, furniture, white goods and vacations. The loans will be provided with long maturities and interest rates below the current market rates.
Nearly million Turks took out their first ever bank loan in April. Turks are being told they must wait up to three months to get the imported car.
Hema Group restructured €400mn bank debt (See Section 8.1.4).
State companies, with shares publicly traded on the Istanbul stock exchange, is exempt from restrictions on mergers and the length of time companies have to wait until they can sell their shares after a buyout
Iran rejects a claim from Turkey that gas pipeline explosion is a force majeure to bypass take-or-pay contract. Turkey’s LNG imports outstrip pipeline gas imports in March. Turkey’s energy regulator warned of a price ceiling for fuel retailers if they fail to lower prices.
Moody’s downgraded Turkish Airlines to B3. The net loss of Turkish Airlines widened by 62% y/y in the first quarter to Turkish lira (TRY) 2.02bn (€267mn). Lufthansa closed the German charter arm of SunExpress holiday flights JV with Turkish Airlines.
Online second hand vehicle sales in Turkey rose 38% in May. Turkish gas importers amassed $2bn debt to Gazprom.
5 TURKEY Country Report July 2020 www.intellinews.com
