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bne August 2020 Companies & Markets I 11
western coast to make Volkswagen Passat models as well as Superb sedans that come under its Czech Skoda brand. The company was envisaging a possible start in 2022 with an annual capacity of 300,000 units, according to The Associated Press.
Turkish President Recep Tayyip Erdogan was so enthusiastic about persuading VW to select Turkey for its manufacturing facility that he ordered officials to buy Passat limousines. But then came the invasion of Syria to pursue Kurdish fighters and Turkey as a location met with opposition from German labour unions.
VW added that the pandemic had pushed market growth expectations far into the future.
The plant was originally intended to supply vehicles that would satisfy what was previously forecast as growing demand in Eastern Europe and the Middle East. VW said it would carry out all its planned vehicle projects with its current factories.
Huge damage
The EU’s exclusion of Turkey from its “safe list” of countries where it can advise non-essential travel is a grievous blow for a country that relies on tourism for something like around 13% of its GDP and is desperate to get its international tourism season rolling this summer given the huge damage already dealt to it by the virus emergency and related lockdowns and restrictions.
Turkish foreign ministry spokesman Hami Aksoy responded in a statement as quoted by Reuters: “The measures Turkey has taken to combat the coronavirus pandemic as well as her efforts and success in this respect are evident. We expect the correction of this mistake regarding the travel restrictions for our citizens as soon as possible.”
However, there have even been doubts expressed by representatives of the top Turkish medics association as to whether Turkey has yet brought its coronavirus outbreak under control. New daily cases of infection are still running at around 1,300 – and that’s the official tally, the unofficial picture could be a lot worse say some experts.
Turkish Foreign Minister Mevlut Cavusoglu and Tourism Minister Mehmet Ersoy were set to visit Berlin on July 2 for talks with German officials to discuss the pandemic and tourism among other issues. Germany is a key source of tourists for Turkey.
Earlier on July 1, Erdogan told officials from his AKP party that Europe had maintained “restrictive” policies towards Turkey based on political rather than health factors. He also spent part of the day fiercely criticising foreign social media networks and warning that his administration would bring their platforms under its control or shut them down.
Moldova seeks $550mn from IMF and new €100mn MFA with EU
Iulian Ernst in Bucharest
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package attached. Chisinau also hopes for a new €100mn macro-financial assistance (MFA) agreement with the EU.
If it manages to agree the $550mn financial package with the IMF, the biggest part of the funds would be used to finance the budget deficit, and a small part would be used to increase the foreign currency reserves of the National Bank of Moldova.
"The financial support on behalf of IMF is essential for Moldova, the economy of which was clearly hit by the COVID-19 pandemic. We are ready to discuss and fulfill those several important points provided for in the agreement on financing and to continue the cooperation. Especially that the last programme with IMF was carried out successfully,’’ Prime Minister Ion Chicu said, according to a government statement.
Negotiations are going ahead despite the political uncertainty in Moldova, where Chicu’s Socialist government recently lost majority support in parliament.
In an unusual move, the IMF team has involved other political forces in the talks in order to address the high political volatility in the country, Mold Street reported.
Moldova successfully completed its last IMF arrangement one this spring with $235mn disbursements including a supplementary portion decided strictly with the purpose of addressing the effects of the coronavirus (COVID-19) crisis.
he Moldovan government is in remote negotiations with the International Monetary Fund (IMF) with the aim of
securing a new arrangement with a $550mn financial
Moldovan officials are holding remote discussions with an IMF team.
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