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Previously, a senior official at the World Bank experts, noting the possibility of becoming unable to pay the external debt of giant corporations, "In such a situation a crisis in the financial system in Turkey and a deep and take provoking plus an economic recession "expressed his opinion. [19659002] Hakuraa in time, "Turkey goes to the economic crisis with steps in the course of execution" article published under the title as follows:
President Erdogan of Turkey, 15 days after the parliamentary elections and presidential by the constitution in Turkey, he was given appointed a new government with broad powers.
"The inexperienced father-in-law appointed Berat Albayrak Minister of Finance and Treasury"
More importantly, Erdogan is the oldest and oldest, the Deputy Prime Minister and former chief economist of Merrill Lynch Mehmet Simsek instead named Berat Albayrak, the inexperienced lady, Minister of Finance and Treasury.
Erdogan will give priority to short-term growth regardless of the cost of macroeconomic and financial stability, no matter the cost. This includes stopping double-digit inflation which is growing out of control, and dropping interest rate hikes needed to support the Turkish lira, which has lost nearly 20% this year.
"The Central Bank Became Politicized"
Erdogan, with his previous engagement, stated that the President of the Central Bank, his supporters and his supporters, he made the decision to publish his power to appoint members of the Monetary Policy Committee to its four-year term. The process of politicization of the Central Bank, which was once a respected and independent institution, has been completed by this movement.
Erdogan's progressive skyscrapers, gigantic infrastructure projects, and high-performance infrastructure projects also conform to Erdogan's unconventional views that the rates of High interest in monetary policy are equivalent to high inflation. growth figures. Audi's average economy-style Turkey, to bring their Ferrari-style growth rate in the upper segment becomes the gas is squeezed. However, as any mechanic knows, such tactics have no chance of succeeding in the long run. Since the end of the engine.
Erdogan, Turkey's richest economies in the growth model in order to leap to the league does not accept the fact that deep changes to achieve.
Net conclusion: The foreign currency debt of the business world is expected to decrease by the end of 2017, which will not be the case. It has grown to $ 328 billion. Even after the loss of assets in foreign currency, it was still worrying $ 214 billion. The stock of debt in dollars and euros has doubled since 2008, and 80% of this stock is in the hands of domestic banks. When this heavy balance of payments, taking into account the conditions, in order to prevent the emergence of foreign assets of Turkey, it would be necessary to think in the short or medium term to bring the control of capital n 39; is not a remote possibility.
It is not surprising that some large Turkish companies, whose financial burden has increased with the depreciation of the lira, have begun negotiations with their buyers to restructure their large external debts. If you become large Turkish companies can not pay a significant portion of its external debt, which is reflected in the general economy of Turkey, leading to mass consumer panic, shaken confidence international financial markets and Turkey to a crisis in the financial system and from a depth and take provokes more an economic recession. [19659006] Erdogan's nationalist ally, MHP, joined hands in refusing to take part in the decision. MHP leader Devlet Bahçeli had to learn a lesson from the financial crisis that erupted in 2001, when he was one of the partners in the tripartite coalitions. Thus, an economic crisis rather than taking the risk of blemishing responsibility, chose to act outside.
"Erodogan's Achilles' economy heel deterioration
President of Turkey, without worrying about spills, the approach of the exclusive management of sui continues to double. Regardless of political dominance, the deformed economy is the biggest threat to Erdogan's ascetic hegemony and the leadership that still seems unbeatable.
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