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deep junk.
Such regulations have been consistently executed in Turkey since 2016. As a result, the capital adequacy ratios and financial statements of lenders in the country are far from reliable.
The Erdogan administration also regularly taps hard currency from local banks by selling them FX-denominated domestic paper or via central bank swaps.
S&P downgraded Vestel Elektronik to Selective Default and then it upgraded back to CCC- with a negative outlook.
Hundreds of thousands of businesses have had to shut down amid the pandemic, while the wretched impact of COVID-19 shutdowns on the millions of Turks with unregistered work in the informal economy can only be guessed at.
Most businesses in Turkey’s big tourism, automotive and transportation industries have been shut down, but work continues at factories and construction sites.
Unemployment ranks “jumped by 2mn”.
Ankara has halted all international and domestic flights. Tourism minister thinks flights will return to normal by the end of June.
Turkish Airlines extended the cancellation of its international flights to May 20 and its domestic flight services would remain frozen until April 20. Budget carrier Pegasus Airlines extended cancellation of flights to May 15.
No joke: Operator of Istanbul’s mega airport applied to build a third runway. Turkcell sees risks and opportunities in coronavirus outbreak.
Revo has invested €2mn in 3D augmented reality startup CY Vision, a partner of Erdogan’s “native and national car” programme. E-accounting startup mukkellef.co sees surges in applications to start delivery firms. (See details under Section 9.2.2 and 9.2.7).
Automobile exports sank by 29% y/y in March. Auto production in March shrank 22% y/y.
Refiner Tupras ‘cut runs by 50% due to pandemic impact on fuel demand’. Fitch revises Tupras' outlook to negative, affirms 'BB-' rating. Tupras downgraded 2020 forecasts.
Azerbaijan’s state oil firm SOCAR and its partner BP have delayed taking a final investment decision (FID) on the construction of a new petrochemical complex in western Turkey, in light of the oil price collapse.
Arcelik temporarily halted production and sales activities in Pakistan, Bangladesh, South Africa and Russia.
Tens of thousands of retailers in Turkey’s 450-plus shopping centres ‘are unable to pay their rent for April and it remains uncertain when they will be able to do so’.
Invasion of the stinkbug threatens Turkey’s role as the world's biggest hazelnut supplier.
“Just in case anyone is in any doubt: I'm bearish Turkey”: Julian Rimmer of Investec.
5 TURKEY Country Report May 2020 www.intellinews.com
