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As a result, the yield on CPI-indexed government paper due July 2021 fell to inflation minus 0.4pp as of June 8 from inflation plus 3.5pp as of April 17, the publication also reported.
"FALLEN TO MINUS/Banks give in to return below inflation" (BloombergHT)
The yield stood at above inflation plus 5pp in December 2018 (see the November 2018 reference above for upcoming interventions in the market) and at above plus 4pp until the government initiated the non-stop policy rate cuts cycle in July 2019.
Turkish bankers right now hope that booming food prices and oil prices climbing upwards once more will be reflected in the official inflation figures, according to some unnamed bankers quoted by BloombergHT.
9.0 Industry & Sectors 9.1 Sector news
9.1.1 Oil & gas sector news
Mehdi Jamshidi-Dana, former director for dispatching at state-owned National Iranian Gas Company (NIGC) and presently interim caretaker of its Gas Transfer Company, said on june 7 that NIGC has r ejected a claim from Turkey that the suspension of supplies represented a force majeure event, meaning Ankara could avoid paying for gas not taken under the two sides' 25-year take-or-pay contract that came into effect 19 years ago.
Turkey imported 7.7bn cubic metres (bcm) of gas from Iran in 2019, equivalent to around 17% of its total gas imports. The long-term contract allows Ankara to buy up to 9.6bcm/year.
According to data from S&P Global Platts Analytics, Turkey has taken 24 cargoes of US LNG already in 2020, compared with 13 for the whole of 2019 and just four in 2018.
Iranian gas exports to Turkey will resume by the end of June, Iranian foreign minister Mohammad Javad Zarif said on June 15 at a press conference in Istanbul held jointly with his Turkish counterpart Mevlut Cavusoglu.
Zarif said that he had received assurances that repairs to the pipeline—closed
56 TURKEY Country Report July 2020 www.intellinews.com
