Page 5 - TURKRptFeb20

the current account deficit to be added to this figure depends on the direction of economic policymaking across the year. However, it should not be forgotten that: If you owe the creditors $100 that's your problem. If you owe the creditors $150bn, that's their problem .
The domestic borrowing market remains almost idle as foreign investors have fled while t he external borrowing channels are not looking promising either . The banks are still net debt payers while the real sector turns on short-term trade credits. The year of 2020 will be a troubling year for government financing . Erdogan has so far had the power to order local private lenders, pension funds and the central bank to finance the government. The central bank will transfer a total TRY50-55bn to the Treasury throughout 2020. The Turkish government is to pay a total of €400mn to the operator of Istanbul’s $3bn Yavuz Sultan Selim toll bridge, under a guarantee scheme.
Isbank has sold $750mn of 10-year subordinated eurobonds . Vakifbank has sold $750mn of 5-year paper. TSKB sold $400mn of 5-year paper. Yapi Kredi sold $50mn of debut green papers. Garanti, Ziraat, Akbank, the Turkish Wealth Fund, the Istanbul municipality and Turkish Airlines are awaited by the market. Vakifbank recalled $500mn of 10-year subordinated paper to repay on February 5.
The “Casino” Borsa Istanbul remains illiquid and insecure . The stock exchange broke consecutive records in January. Unexplained fluctuations were observed in the foreign-held share of equities. Turkish ETFs were on roll . The expected correction came through at the end of the month.
Garanti, Akbank downplayed NPL concerns in its 2020 guidance. Minority shareholders of Akbank sold a 1.9% stake. Garanti reported a 7% y/y decline in profit in 2019. Akbank financials followed on January 31. Isbank is scheduled to report its numbers in the first week of February. Garanti is reportedly selling its Romanian unit. Turkey’s six largest lenders are forecast to report their first quarterly profit gains for Q4 after three straight quarters of declines.
Petrochemical producer Petkim was named at Davos as among leaders applying technologies of the Fourth Industrial Revolution.
TAV Airports received €389mn in compensation from Ataturk Airport due to the shift to Istanbul’s new mega airport. Pegasus Airlines shares plunged after Turkish Airlines announced Sabiha Gokcen Airport flights and the aviation authority rejected offering any new flight rights at the airport. The move supports the mega hub, Istanbul Airport.
Top listed automaker Ford Otosan outperformed peer Tofas in 2019 exports.
Arcelik participated in a €100mn capital increase in its Netherlands-based wholly owned subsidiary Ardutch BV.
Kron Telekom and Logo Software have kept their places in the Deloitte Technology Fast 50 Turkey ranking. Rapid delivery groceries start-up Getir raises $38mn from foreign investors.
Emlak REIT targets TRY1.13bn net profit for 2020.
5 TURKEY Country Report OUTLOOK 2020 www.intellinews.com