DIRS.INFO The most relevant business & tech news

☆ Turkey to toughen law on crypto assets - minister
▼ + stars: | 2023-11-01 | by ( ) www.reuters.com time to read: +1 min

[1/2] Representations of cryptocurrency Bitcoin, Ethereum and Dash plunge into water in this illustration taken, May 23, 2022. The Financial Action Task Force (FATF) downgraded Turkey to a so-called grey list in 2021. Addressing a parliamentary commission late on Tuesday, Finance Minister Mehmet Simsek said a FATF report found Turkey fully compliant with all but one of the watchdog's 40 standards. "The only remaining issue within the scope of technical compliance is the work related to crypto assets," Simsek said. After that, there will be no reason for Turkey to stay in that grey list, if there are no other political considerations."

Persons: Dado Ruvic, Mehmet Simsek, Simsek, Nevzat Devranoglu, Huseyin Hayatsever, Simon Cameron, Moore Organizations: REUTERS, Rights, Thomson Locations: Rights ANKARA, Turkey

[1/5] A new building for earthquake survivors is under construction in Diyarbakir, Turkey August 26, 2023. With work underway on a fraction of the planned new buildings in the devastated city of Adiyaman, Kaplan fears a long wait together with his disabled wife and other survivors. One senior government official with direct knowledge of the reconstruction plan said the target could be missed, citing insufficient fresh funding to hold new tenders amid rising costs. They both said the effort had taken a blow when fewer companies bid for the reconstruction tenders after a post-election economic policy U-turn in June sent the currency plunging. "Our budget resources have been prepared for this huge, comprehensive project and can be updated when necessary," Erdogan's office said.

Persons: Stringer, Ismet Kaplan, Tayyip Erdogan, Erdogan, Kaplan, Bayir, Adiyaman, Turkey's, Mehmet Ozhaseki, Arvid Tuerkner, Mert Arslanalp, Erdogan's, Arslanalp, Mehmet Simsek, Simsek, Tahir Tellioglu, Tellioglu, Umit, Ezgi Erkoyun, Nevzat Devranoglu, Jonathan Spicer, Frank Jack Daniel Our Organizations: REUTERS, Rights, Reuters, Union of Chambers of Turkish Engineers and Architects, Coordination Council, European Bank for Reconstruction, Erdogan's AK, Istanbul's Bogazici University, TAG, Construction, Thomson Locations: Diyarbakir, Turkey, Rights ISTANBUL, Adiyaman, Netherlands, Belgium, Syria, Hatay, Malatya, Gaziantep, Istanbul, Ankara

The planned tariff has caused disquiet among trading partners and at a forum last month, China's top climate envoy Xie Zhenhua urged countries not to resort to unilateral measures such as the EU levy. The bloc will not begin collecting any CO2 emission charges at the border until 2026. Importers will from 2026 need to purchase certificates to cover these CO2 emissions to put foreign producers on a level footing with EU industries that must buy permits from the EU carbon market when they pollute. Companies in the European Union, Britain and Ukraine have told Reuters they expect little initial impact during the trial phase. Among Europe's significant trade partners, China's foreign ministry, Turkey's trade ministry and a U.S. official declined to comment on the launch.

Persons: Xie Zhenhua, Paolo Gentiloni, Gentiloni, Philip Blenkinsop, Kate Abnett, Valerie Volcovici, Nevzat, David Stanway, Barbara Lewis Organizations: European Union, Companies, Reuters, European Commission, World Trade Organization, U.S, Thomson Locations: BRUSSELS, Britain, Ukraine, Europe, Washington, Ankara, Beijing

☆ World Bank to increase exposure to Turkey to $35 bln within three years - Anadolu
▼ + stars: | 2023-09-07 | by ( ) www.reuters.com time to read: +1 min

The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File photo Acquire Licensing RightsANKARA, Sept 7 (Reuters) - The World Bank plans to increase its exposure to Turkey to $35 billion within three years, the bank's Turkey country director was quoted as saying by Turkish state-owned news agency Anadolu on Thursday. Humberto Lopez told Anadolu the World Bank planned to add $18 billion worth of new operations to its existing %17 billion exposure in the country, adding this figure included providing direct credits to the government supporting the private sector. Lopez said the $35 billion package was in response to the "strong commitment" by Ankara to re-establish macroeconomic stability and to support steps in that direction, according to Anadolu. Reporting by Nevzat Devranoglu; Writing by Tuvan Gumrukcu; Editing by Daren ButlerOur Standards: The Thomson Reuters Trust Principles.

Persons: Elizabeth Frantz, Humberto Lopez, Lopez, Nevzat Devranoglu, Daren Butler Organizations: World Bank Group, International Monetary Fund, REUTERS, Rights, Bank, Anadolu, World Bank, Thomson Locations: Washington , U.S, Rights ANKARA, Turkey, Turkish, Ankara, Anadolu

Turkey's Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. Yet five foreign investors told Reuters that this week's rate hike signalled a new independence among policymakers who are serious about addressing unrelenting pressure on the currency and reining in inflation expectations. "It feels like they are correcting the mistakes they made with their first rate hike decisions," said Viktor Szabo, portfolio manager at abrdn in London. Erdogan, who has fired four central bank chiefs in four years, has said little about the rate hikes. Reuters GraphicsTurkish stock, Eurobond and CDS markets are more attractive targets this year and next, especially after the rate hike, investors and officials say.

Persons: Umit, Erdogan's unorthodoxy, Mehmet Simsek, Goldman Sachs, Tayyip Erdogan's, Viktor Szabo, Ola El, Van Eck, ERDOGAN, Erdogan, Simsek, Hafize Gaye Erkan, Cevdet Yilmaz, Blaise Antin, TCW, Kaan, Neuberger Berman, Jonathan Spicer, Marc Jones, Jorgelina, Hugh Lawson Organizations: Turkey's Central Bank, Finance, Goldman, Reuters, abrdn, Emerging Markets, Wall Street, JPMorgan, Reuters Graphics, CDS, Yeni, United Nations, International Monetary Fund, Thomson Locations: Ankara, Turkey, ANKARA, LONDON, New York, London, Van, Los Angeles, Reuters Graphics Turkish, Yeni Safak, Morocco, Japan, Singapore, Hong Kong, Istanbul, Rosario

The sustained inflationary pressure, driven by a lira drop and tax hikes, comes as President Tayyip Erdogan's new finance minister and central bank chief orchestrate a policy U-turn including interest rate hikes that are expected to slow domestic demand. But in the meantime the U-turn has hammered the currency and left authorities asking already-stretched households for patience. In July, consumer prices soared nearly 10% sequentially due to tax hikes and a lira crash. This month, forecasts by five economists show them rising between 5.5% and 8.5%, with fallout from mid-July tax hikes lagging into August. After years of divergence with market expectations, the central bank matched those last month when it raised its end-2023 annual inflation forecast to 58.0% from a previous 22.3%.

Persons: Erdogan, Tayyip Erdogan's, Hafize Gaye Erkan, Erdogan's, Erkan, Mehmet Simsek, Moody's, Daren Butler, Jonathan Spicer, Toby Chopra Organizations: Turkish Statistical Institute, Thomson Locations: Erdogan ANKARA, Istanbul, Turkey's

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. According to calculations by five bankers, obtained by Reuters, net reserves rose $4.9 billion to $15.8 billion last week, while total reserves climbed to $115.6 billion. The recent uptrend in reserves reversed in the week to July 28, with net forex falling $2.8 billion to $10.89 billion. The central bank continues to get foreign exchange from tourism and a scheme to protect lira bank deposits from depreciation known as KKM. The bank has paid an estimated 300 billion lira ($11 billion) to cover depreciation costs under the scheme in June and July, with the cost in August estimated at 350 billion lira.

Persons: Cagla, Tayyip Erdogan, Erdogan, Hafize Gaye Erkan, Nevzat Devranoglu, Orhan Coskun, Daren Butler, Jonathan Spicer, John Stonestreet Organizations: Turkey's Central, REUTERS, Reuters, Bankers, Thomson Locations: Ankara, Turkey, ANKARA

The biggest contribution to the sharp rise in the 2023 forecast came from forecasts deviations and a change in forecasting approach. "The central bank did not only provide an inflation forecast that is in line with economists predictions but... the emphasis in the report very much matched those of the market. We had not seen this from the central bank in many years. CENTRAL BANK INDEPENDENCEEconomists expect the policy rate to rise further to 25% by year-end, still leaving real rates negative. "Defining interest rate hikes as sufficient or insufficient can only be done after inspecting the intricacies of this holistic approach," she said.

Persons: Hafize Gaye Erkan, Erkan, Nilufer Sezgin, Sahap Kavcioglu, Erdogan, Ali Kucukgocmen, Daren Butler, Andrew Heavens, Bernadette Baum Organizations: Wall Street, CENTRAL, Ece Toksabay, Thomson Locations: ANKARA, Ankara

The lira hit a record low of 26.9 against the U.S. currency, sliding from Monday's close of 26.3505. The central bank will announce its rate decision at 1100 GMT on Thursday. "News saying that the central bank's interest rate hike will be below market expectations is triggering the lira depreciation," said one trader. But June's hike was below expectations, with economists saying Erdogan's influence over the central bank limits how far they can go in tightening policy. Turkey's annual inflation surged to a 24-year high of 85.51% last October, mainly due to lira depreciation because of Erdogan's policy of low rates.

Persons: Abdulkadir Selvi, Tayyip Erdogan, Nevzat Devranoglu, Daren Butler, Christina Fincher Organizations: Hurriyet, Ece Toksabay, Thomson Locations: ISTANBUL

☆ Turkey increases fuel tax as it bolsters stretched budget
▼ + stars: | 2023-07-16 | by ( ) www.reuters.com time to read: +2 min

ANKARA, July 16 (Reuters) - Turkey raised tax on petrol on Sunday to help to fund a 1.12 trillion lira ($42.2 billion) increase to its 2023 budget after February's earthquakes and the May presidential election sent spending soaring. The wider deficit was largely because of increased spending ahead of May elections, when President Tayyip Erdogan was elected for a third term, as well as on rebuilding work after the earthquakes in southern Turkey. The earthquakes, which killed more than 50,000 people, are expected to cost Turkey more than $100 billion in total. In the latest step to strengthen the Treasury's cash reserves, the tax rate for gasoline was increased to 7.52 lira per litre from 2.52 lira ($0.1) while tax on diesel oil rose to 7.05 lira from 2.05 lira. The 1.12 trillion lira boost to Ankara's budget was approved by parliament on Saturday and follows various other recent tax increases among efforts to bolster government coffers, including a two percentage point increase to VAT.

Persons: Tayyip Erdogan, Ali Kucukgocmen, Diane Craft, David Goodman Organizations: stoke, Ece Toksabay, Thomson Locations: ANKARA, Turkey

The rate hike came in the first policy meeting under new Central Bank Governor Hafize Gaye Erkan. The central bank's net reserves rose to $9.19 billion in the week to June 23, its biggest rise on record. Although the central bank's reserves have rebounded since mid-June, state banks are still selling dollars to meet demand from maturing lira deposit accounts known as KKM. Authorities were not seeking to support the lira and the central bank maintained its stance of not selling via state banks, the person added, requesting anonymity. "The committee evaluated that the current monetary policy framework is far from achieving the 5% inflation target, given the inflation outlook and upside risks," the central bank said.

Persons: Tayyip Erdogan, Central Bank Governor Hafize Gaye Erkan, Erkan, Erdogan, Nevzat Devranoglu, Jonathan Spicer, Daren Butler, Christina Fincher Organizations: Central Bank Governor, Reuters, Authorities, stoke, Thomson Locations: Turkey, ANKARA

With the use of central bank reserves to protect the lira’s value before the election, reserves fell to a historical low in early June, with net reserves at minus $5.7 billion. Hence, there is no use of foreign exchange reserves and a period of increasing reserves has started," he added. His comments echoed the view of bankers that the central bank had "completely stopped" using its reserves. CENTRAL BANK MEASURESUnder new central bank steps announced at the weekend, the securities maintenance ratio that banks are required to allocate to their foreign currency deposit was reduced to 5% from 10%. The new regulation said banks whose lira deposits are less than 57% of total deposits will have to hold an additional seven percentage points of securities, compared to the previous seven additional points applied to banks that held less than 60% lira deposits.

Persons: Murad Sezer, Lira, Tayyip Erdogan, Hafize Gaye Erkan, Enver Erkan, Daren Butler, Canan, Jonathan Spicer, Emelia Sithole Organizations: REUTERS, Securities, Bankers, Thomson Locations: Istanbul, Turkey, ANKARA, backtrack, Turkish

☆ Turkey central bank takes fresh measures for increasing functionality of market mechanisms
▼ + stars: | 2023-06-24 | by ( ) www.reuters.com time to read: +1 min

ANKARA, June 25 (Reuters) - Turkey's central bank took fresh steps on Sunday in line with its goals to increase functionality of market mechanisms, after it hiked rates to 15% from 8.5% this week. Turkey's securities maintenance regulation has been simplified to increase the functionality of market mechanisms and strengthen macro financial stability, the Turkish central bank said on Sunday. In a statement after the committee meeting, the bank said it would simplify and improve the existing micro- and macroprudential framework to increase the functionality of market mechanisms and strengthen macro financial stability. With the new regulation, securities that banks must maintain ranged between 3% and 12% of their lira deposits. Previously the requirement of seven additional points applied to banks which held less than 60% lira deposits.

Persons: Nevzat Devranoglu, Huseyin Hayatsever, Daniel Wallis Organizations: Gazette, Thomson Locations: ANKARA, Turkish

☆ Erdogan sees swift steps from new finance minister but says his own monetary views unchanged
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +3 min

"Some of our friends should not be mistaken, such as (asking) 'Is our president going for a serious change in interest rate policies?'" "But upon the thinking of our treasury and finance minister, we have accepted that he will take steps swiftly, comfortably with the central bank," Erdogan said. Analysts at leading investment banks now expect Turkey's central bank to start ramping up rates at its monetary policy committee meeting on June 22. Erdogan said he told the new central bank governor about his expectations. "God willing, neither our finance minister nor our central bank governor will embarrass us and I think we will hopefully obtain positive results."

Persons: Erdogan, Tayyip Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Simsek, Orhan Coskun, Nevzat Devranoglu, Huseyin Hayatsever, Ali Kucukgocmen, Daren Butler, Peter Graff Organizations: stoke, Authorities, Wall Street, Toksabay, Thomson Locations: ANKARA, Azerbaijan, Turkish, Ankara

The currency later recouped some of its losses, standing at 23.33 against the dollar by 0542 GMT, after touching a record low of 23.39 overnight during illiquid trading hours. "There is no air of panic in the markets as in previous times when there were such high losses. The central bank's net forex reserves hit an all-time low of negative $4.4 billion last month as demand surged through the elections. Investors are now awaiting the appointment of a new central bank governor to succeed Sahap Kavcioglu, who has spearheaded Erdogan's rate-slashing drive since 2021. Erdogan is considering appointing Hafize Gaye Erkan, a U.S.-based senior finance executive, as central bank governor, Reuters reported on Monday.

Persons: Tayyip Erdogan's, Erdogan, Mehmet Simsek, Simsek, Erik Meyersson, SEB, Meyersson, Sahap Kavcioglu, Hafize Gaye Erkan, Ali Kucukgocmen, Jonathan Spicer, Gareth Jones Organizations: Lira, Reuters, Thomson Locations: ISTANBUL, Ankara, U.S

☆ Turkish cenbank data shows $3 bln inflow from abroad -bankers
▼ + stars: | 2023-06-08 | by ( Nevzat Devranoglu | ) www.reuters.com time to read: +1 min

ANKARA, June 8 (Reuters) - Turkish central bank reserves data shows inflows of about $3 billion into depo accounts last week from abroad, bankers said on Thursday. The central bank did not comment when asked about the matter by Reuters. Four bankers contacted by Reuters calculated that there was between $3 and $3.1 billion deposited into the accounts. Before being re-elected to office on May 28, Turkish President Tayyip Erdogan said Gulf states had sent funding to Turkey, briefly helping relieve the central bank and markets. The central bank's net international reserves hit an all-time low of negative $5.7 billion as of June 2, data showed on Thursday, with demand having surged through the elections.

Persons: Tayyip Erdogan, Erdogan, Nevzat Devranoglu, Daren Butler, Jonathan Spicer, Emelia Organizations: Reuters, United Arab, Ece, Thomson Locations: ANKARA, Turkish, Turkey, Ankara, United Arab Emirates, Qatar, China, South Korea

Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies. "I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy." Bankers say the lira's continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves. But it sparked a record lira crisis in December of 2021 and sent inflation to a 24-year high above 85% last year. Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported on Monday.

Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, Tim Ash, Hafize Gaye Erkan, Erkan, Paul McNamara, Huseyin Hayatsever, Jonathan Spicer, Ali Kucukgocmen, Tom Hogue, Christina Fincher Organizations: BlueBay Asset Management, Bankers, Reuters, Simsek, GAM, Thomson Locations: ANKARA, Turkish, United States, Ankara, Turkey, Jorgelina, Rosario, London

☆ Turkish economy to return to 'rational ground', new finance minister says
▼ + stars: | 2023-06-04 | by ( Nevzat Devranoglu | ) www.reuters.com time to read: +2 min

ANKARA, June 4 (Reuters) - Turkey's newly appointed Finance Minister Mehmet Simsek said on Sunday that the country has no choice but to return to "rational ground" to ensure predictability in the economy. In a handover ceremony, Simsek said the main goal of the new government will be to increase social welfare. "Turkey has no other choice than to return to a rational ground. A rules-based, predictable Turkish economy will be the key to achieving the desired prosperity." Fiscal policies and structural reforms will support Turkey's central bank to help lowering inflation, Simsek also said.

Persons: Mehmet Simsek, Tayyip Erdogan, Simsek, Goldman Sachs, Huseyin Hayatsever, Hugh Lawson, Susan Fenton Organizations: Thomson Locations: ANKARA, Turkey

It reinforced Erdogan's image of invincibility in the deeply divided NATO-member country, whose foreign, economic and security policy he has redrawn. Pro-government newspapers, part of an overwhelmingly pro-Erdogan media landscape that buoyed his election campaign in the nation of 85 million people, cheered his victory. Erdogan said inflation, which hit a 24-year peak of 85% last year before easing, is Turkey's most urgent issue. Turkey's main pro-Kurdish party, parliament's third largest, was among the opposition parties opposed to Erdogan and is accused of links to Kurdish militants, which it denies. Erdogan, head of the Islamist-rooted AK Party, appealed to voters with nationalist and conservative rhetoric in a divisive campaign that deflected attention from Turkey's economic problems.

Tens of billions of dollars of FX and gold reserves have been used up - another sign of systematic micro-management. Depositors have put some $33 billion into depreciation-protected bank accounts in the last two months, bringing the total to $121 billion - almost a quarter of all Turkish deposits. Benchmark international market bonds have fallen back 10%-15% and key FX market volatility gauges that look a year or more ahead have hit record highs. Eyes are now on the FX reserves and the lira as it surpasses 20 to the dollar, the latest major milestone in its long descent. "These weren't seen as cheap assets, they were seen as jewels," MIT's Acemoglu said of the M&A banking boom heyday.

Under the terms of the agreement, up to $4 billion in Turkish energy payments to Russia may be postponed until next year, both sources told Reuters under condition of anonymity. Turkey, which is preparing for elections on Sunday, depends heavily on energy imports and Russia is its largest supplier. The source said Turkey could push back further such payments in the coming months depending on the course of energy prices. The Russian and Turkish energy ministries, and their respective energy companies Gazprom and Botas, have not responded to requests for comment on the issue. Turkish Energy Minister Fatih Donmez said last week that Turkey and Moscow agreed a deal allowing Ankara to defer energy payments up to a certain amount, but did not give details.

ISTANBUL, March 24 (Reuters) - Scores of foreign investors are returning to Istanbul and Ankara after years in the cold for a flurry of meetings to understand whether Turkish elections could bring a tidal change for its economy and financial markets. President Tayyip Erdogan's unorthodox policy approach, including aggressive rate cuts in the face of soaring inflation, left the economy and markets heavily state-managed and spurred an exodus of foreign investors over the last five years. Investors seek to understand "who will win, who will hold key positions and what the programme will be." Wall Street bank Citi said it held two days of meetings in Istanbul earlier this month for its bond and equity investors. "It may be a good opportunity to rethink Turkey's currently significant 'underweight' positioning among peer markets," the investor said.

☆ Turkey plans to ratify Finland's NATO bid ahead of May polls, sources say
▼ + stars: | 2023-03-15 | by ( Orhan Coskun | ) www.reuters.com time to read: +4 min

A senior Turkish official told Reuters that Finland's bid would be approved independently from that of Sweden. Niinisto, who will visit Turkey on March 16-17, said he believed Turkish President Tayyip Erdogan will give his blessing to Finland's NATO bid when the two meet. Erdogan indicated that he would send ratification of Finland's NATO membership to parliament soon, saying that he would "keep his promise". After that, we will fulfil our promise," Erdogan told reporters on Wednesday, when asked whether he would send ratification of Finland's NATO bid to Turkish parliament next week. "Positive messages will be given to Finland's president during his visit," the second official said.

☆ Turkey plans to ratify Finland's NATO bid ahead of May polls -sources
▼ + stars: | 2023-03-15 | by ( Orhan Coskun | ) www.reuters.com time to read: +3 min

Amid growing tensions with Sweden, Turkish President Tayyip Erdogan signalled for the first time in January that Ankara could give a green light to Helsinki ahead of Stockholm. "It is highly likely that the necessary step for Finland's NATO membership will be completed before (parliament) closes and the election is held," the official said. Turkish President Tayyip Erdogan indicated that he would send ratification of Finland's NATO membership to parliament soon, saying that he would "keep his promise". After that, we will fulfil our promise," Erdogan told reporters on Wednesday, when asked whether he would send ratification of Finland's NATO bid to Turkish parliament next week. "Positive messages will be given to Finland's president during his visit," the second official said.

Under a new proposal following a weekend of political intrigue, two popular mayors would serve as vice presidents should the opposition win in the presidential and parliamentary elections on May 14. With polls showing a close race, the vote is the biggest challenge Erdogan has faced in two decades in power. Instead, Aksener proposed that either Ekrem Imamoglu or Mansur Yavas, mayors of Istanbul and Ankara, be the candidate. "She has conveyed the proposal that the two mayors serve as executive vice presidents," Zorlu said. The opposition has failed in previous national votes to pose a serious challenge to Erdogan, whose AKP came to power in 2002.

Search resuls for: "Nevzat Devranoglu"

25 mentions found