Turkish Economy - News & Updates

[xenon54 out]

News says 'SERVICES export'... In Turkish 'hizmet ihracatı'...

Seems like its Turkish journalism at its best once again, the annual volume of THY is totaly 8 Bln $ i cant believe they exported service in this hight, whatever it might be.

 

[Serpentine]

Turkish trucks waiting to pass through Iran border as Iraq’s is insecure - Trend.Az | Mobile version

Turkish trucks waiting to pass through Iran border as Iraq’s is insecure
A queue of Turkish trucks, as long as 12 kilometers, is waiting to pass through the Iran border- crossing of Bazargan as militants of the terrorist group ISIL have caused instability on the Iraq border.

Security problems in Iraq have forced Turkish truck drivers to use the Bazargan-Gurbulak border point with Iran for the transit of goods instead of joint borders with Iraq, IRNA reported on July 28.

On July 27, Iran and Turkey agreed to expand the Bazargan-Gurbulak border point in order to facilitate their customs trade.

The agreement was reached between Iranian Customs Administration head Masoud Karbasian and Turkish Customs Minister Hayat Yazici in Ankara.

In April, Iranian Ambassador to Ankara Alireza Bigdeli said the Islamic Republic of Iran and Turkey have set a target of nearly $16 billion in the volume of their bilateral trade transactions during the current Iranian calendar year (started March 21), Press TV reported.

Bigdeli said that Iran-Turkey trade turnover stood at $1.2 billion in the first quarter of the year 2014 given the released monthly reports, adding that the figure would rise to $20 billion once a preferential trade agreement signed by the two countries is enforced, IRNA reported.

Iran and Turkey have signed a preferential trade agreement which could pave the way for a hike in bilateral trade.

The agreement was signed during Turkish Prime Minister Recep Tayyip Erdogan's visit to Tehran in January. At the time, Erdogan said the goal is to boost trade between the two neighbors to $30 billion by 2015.

The Iranian ambassador further stated that the incumbent Iranian administration plans to engage in talks with Turkish officials in order to set up a joint free trade zone in Salmas city near the border with Turkey in order to further increase economic interactions.

On January 23, Turkish Minister of Energy and Natural Resources Taner Yildiz said Turkey is determined to boost the level of its bilateral trade volume with Iran.

He said Turkey imported $7.6 billion worth of Iranian natural gas and crude oil in 2013, which is a huge figure.

The figure, Yildiz further noted, included $4.5 billion worth of natural gas and $3.1 billion of crude oil.

Turkey seeks to raise the level of its trade transactions with Iran within a logical and legal framework, he pointed out.

 

[Trick2UAV]

 

[ANMDT]

Kemal Derviş
compares the significance of international political turbulence now to that in August 1914.

- Project Syndicate

An article Written about risk of global economy by Kemal Derviş , former Minister of Economic Affairs of Turkey

A Great Breakdown?

• security deficit, reflecting the weakening of whatever global governance we have, is fast becoming the biggest risk facing the world economy. The same point could have been made a century ago.
  
  On July 30, 1914, Austrian warships bombarded Belgrade, five weeks after the assassination of Archduke Franz Ferdinand in Sarajevo. By mid-August, the world was at war. The armistice that was agreed four years later, after about 20 million people had died, amounted only to an interlude before the horror of World War II.
  
  In the years preceding August 1914, until the assassination of the archduke, the global economy performed relatively well: trade expanded worldwide, financial markets seemed healthy, and the business community shrugged off political problems as either temporary or irrelevant. It was a political breakdown that led to three terrible decades for the world economy.
  
  Markets and economic activity can withstand a great deal of political stress and uncertainty – up to the point that the international order breaks down. Today, for example, the economic mood is rather upbeat. The International Monetary Fund forecasts 4% growth for the world economy in 2015, while stock-market indices are up in many parts of the world; indeed, the Dow Jones reached an all-time high in July.
  
  In the last few months, however, a civilian airliner was downed in eastern Ukraine by a sophisticated Russian-made missile, tensions have increased around disputed islands in the South and East China Seas, and chaos in the Middle East has continued to spread. The Israeli-Palestinian conflict is in one of its worst phases in decades, with the renewed frustration unleashed by the massive loss of civilian life in Gaza likely to encourage extreme reactions. Terrorists may be on the verge of designing much less detectable weapons.
  
  There are other, less “political” dangers. West Africa is afflicted by a terrible outbreak of the deadly Ebola virus, which will kill thousands of people. The outbreak has so far remained regional, but it serves as a reminder that in an age of air travel by millions, no one is safe from the spread of infectious disease. Containing a disease or a terrorist threat by curtailing international travel or transport would devastate the world economy.
  
  Thinking about August 1914 should remind us that great catastrophes can materialize gradually. Leaders can be “sleepwalkers” who fail to manage risk by, say, establishing institutions that can channel the rival interests and claims that fuel international conflict. Such sleepwalking by policymakers caused the financial meltdown of 2008 as well. Its consequences were not as deadly, though the political effects of mass unemployment and the heightened perception of economic insecurity are still with us.
  
  These examples should spur the world to find ways forward for cooperative action. But the opposite appears to be happening. The United Nations seems more paralyzed than ever. The US Congress still has not approved the IMF reform package agreed in 2010, weakening one of the most important international institutions. Partly because the United States makes capital increases and governance reforms in global financial institutions so difficult, the BRICS countries (Brazil, Russia, India, China, and South Africa) have launched their own development bank, to be based in Shanghai.
  
  Likewise, instead of providing a shining example of supranational cooperation and pooled sovereignty for the twenty-first century, the European Union remains mired in rather petty disputes. While it still cannot fully agree on the design of its banking union, it is allowing Prime Minister Viktor Orbán of Hungary, a member country, to denigrate the democratic and liberal values upon which the EU rests.
  
  The way forward cannot be a return to the past, with its clashing nation-states. The future can be secured only by strong cooperation among all those committed to liberal democracy and the rule of law, with no double standards or excuses, and by patient strengthening of international institutions that embody these values and can translate them into practice.
  
  Whenever a global or regional power acts in a way that contradicts these values, or allies itself closely with those who do, it undermines the international order, which should deliver security and increasing prosperity (and to some degree has). The global economy holds great promise, but it is a promise that can be realized only in an international system based on rules, consent, respect, and a shared sense of justice.
  
  The fact that neither the mayhem in the Middle East nor the crisis in Ukraine seem to touch financial markets should not lull us into complacency. The memory of August 1914 should remind us how the world stumbled into catastrophe. As we know – or should know – from the example of climate change, big risks must be managed, even if the probability of worse-case outcomes is low.

 

[ANMDT]

Fitch Rating review following the presidental elections, stabilizaition of politic, Economy of Turkey

Political Risk Still High in Turkey Following Erdogan Win – Fitch Ratings

Political Risk Still High in Turkey Following Erdogan Win

Fitch Ratings-London-11 August 2014: The outright victory of Recep Tayyip Erdogan in Sunday's vote, the first round of Turkey's first popular presidential election, does little to ameliorate the political risk to Turkey's sovereign credit profile, Fitch Ratings says. The outcome avoids a second ballot and confirms Erdogan's personal standing with a large part of the electorate. But political risk will weigh on Turkey's ratings through its potential effects to discourage capital inflows and reduce policy predictability.

The presidential election does not conclude the current political cycle, as parliamentary elections must be held by June 2015. Given the anti-government protests last summer in response to Erdogan's perceived authoritarian tendencies, political tension is likely to remain high as Erdogan seeks to extend the power of the presidency.

Erdogan will assume the presidency after 11 years as Prime Minister, and following a strong result for his Justice and Development Party (AKP) in local elections in March (AKP rules prevent Erdogan from remaining PM). But political continuity does not eliminate political and social unrest, which has been elevated since last year's Gezi park protests and corruption scandal.

These events showed how domestic political and social shocks can damage perceptions of sovereign creditworthiness. Turkey has been remarkably resilient to recent external shocks and banks and corporates continue to enjoy high roll-over rates, but we expect political risk to remain a credit weakness that could lead to a negative rating action if it adversely affects government effectiveness and policy predictability.

Policy coherence and credibility are already weaker than ratings peers, chiefly because of shortcomings in the monetary policy framework. Erdogan is maintaining pressure on the Central Bank of the Republic of Turkey (CBRT) to cut interest rates further (the CBT has cut by 1.75pp since May). This could undermine the CBRT's tenuous credibility following sharp rate hikes in January (annual consumer price inflation hit 9.32% in July, nearly double the official 5% target). A rapid unwinding of these hikes would make Turkey more vulnerable to a sudden change in investor sentiment towards emerging markets.

Macroeconomic outcomes so far in 2014 have been broadly positive for Turkey's credit profile, with the lira stabilising and international reserves rebounding. Export growth has been strong, the current account deficit (CAD) has corrected and credit growth has slowed, in both cases more quickly than expected, although the rate of credit growth has increased following the CBRT's recent easing. A resumption of rapid credit growth due to much lower interest rates, accompanied by a renewed deterioration in the CAD, which is still large (we forecast 6.2% of GDP in 2014), and sharply rising external debt would be rating negative.

Geo-political problems in the Middle East are being felt in Turkey's economy, with exports to Iraq falling 46% in July, although increases in exports to the EU and North America offset this.
We affirmed Turkey's 'BBB-'/Stable rating on 4 April. The next scheduled review is on October 3.

 

[ANMDT]

ICSID Kararıyla Bırakıldı|DenizHaber 07 Ağustos 2014 Perşembe 11:16

Karadeniz Company's ships Detained in Pakistan back in 2 years ago , one of them freed by decision made on ICSID ("International Centre for Settlement of Investment Disputes") .

1 of the ships that serve as mobile power plant is freed , 3 of them remains detained; one includes power plant ability,other 2 is service ships.

Here is the related speech given by company

Karkey Karadeniz Holding's affiliates, April 2012 held by Pakistan since the fourth largest ship in the Black Sea Gentlemen Powership Rock, World Bank's ICSID arbitration award was released with

International Centre for Settlement of Investment Disputes, and previously held hostage by Pakistan were allowed to go to the port of Dubai for maintenance "Kaya Bey" floating power plant decide to completely release said.

Karadeniz Holding subsidiary, Karkey the company a written statement, 216 MW of electricity generating capacity of the Kaya Bey's ship more than two years while in Karachi at the port held hostage by stating that the issue in recent months, the World Bank depends on the "International Centre for Settlement of Investment Disputes' (ICSID)" International Centre for Settlement of Investment Disputes "What moved was recorded.

In a statement, interim decisions taken earlier by ICSID and ship repair and maintenance operations for the port of Dubai on 16 May 2014 to go to Pakistan but is separated from the realization of completely release was reminded. It comes from the center, on August 1 than a second decision in this direction occurred and the exact release Kaya Bey ordered to be confirmed and emphasized that to be permanent.

Karadeniz Holding Saudi's Regional Director in Pakistan Yasin won the international tender that they made a huge investment in this project by transferring said:

"Totally Turkish capital and engineering, we have built our ships contractual obligations fulfilling Pakistan began production. Yet the Pakistani side of the contractual obligations, did not perform. Energy vessels to pay as they fuel also did not provide. Eleven months of own resources, our projects have tried to maintain, but payments still could not take place in March 2012 termination of the contract we had to. Meanwhile, Pakistan's Federal High Court in 2006 since the short and medium term all energy projects involving decision-taking project, including all energy rental projects canceled and our ships detained. problem amicable ways to resolve many efforts have. however, over 2 years for a while, two floating power plants, including four of our ships in Pakistan was detained. Kaya Bey was released, but a floating power plant for a total of three of our ships currently in Pakistan. trial process continues. "

Karkey, trying to cope with the energy deficit in Pakistan, opened in 2008 by winning one of the mobile energy lease auction in 2011 by a total of four ships with a capacity of 232 MW, was sent to this country to make production. Karachi, corresponding to 20 percent of the electricity needs with this project was started to produce. Then the termination of the tender had been for various reasons.

Developments Karkey Group on 11 March 2013 referring to ICSID had demanded the release of the ship. Kaya Bey was separated from Pakistan on May 16. Involved in the project while the other three ships are still being held in the country.

 

[-SINAN-]

ICSID Kararıyla Bırakıldı|DenizHaber 07 Ağustos 2014 Perşembe 11:16

Karadeniz Company's ships Detained in Pakistan back in 2 years ago , one of them freed by decision made on ICSID ("International Centre for Settlement of Investment Disputes") .

1 of the ships that serve as mobile power plant is freed , 3 of them remains detained; one includes power plant ability,other 2 is service ships.

Here is the related speech given by company

Karkey Karadeniz Holding's affiliates, April 2012 held by Pakistan since the fourth largest ship in the Black Sea Gentlemen Powership Rock, World Bank's ICSID arbitration award was released with

International Centre for Settlement of Investment Disputes, and previously held hostage by Pakistan were allowed to go to the port of Dubai for maintenance "Kaya Bey" floating power plant decide to completely release said.

Karadeniz Holding subsidiary, Karkey the company a written statement, 216 MW of electricity generating capacity of the Kaya Bey's ship more than two years while in Karachi at the port held hostage by stating that the issue in recent months, the World Bank depends on the "International Centre for Settlement of Investment Disputes' (ICSID)" International Centre for Settlement of Investment Disputes "What moved was recorded.

In a statement, interim decisions taken earlier by ICSID and ship repair and maintenance operations for the port of Dubai on 16 May 2014 to go to Pakistan but is separated from the realization of completely release was reminded. It comes from the center, on August 1 than a second decision in this direction occurred and the exact release Kaya Bey ordered to be confirmed and emphasized that to be permanent.

Karadeniz Holding Saudi's Regional Director in Pakistan Yasin won the international tender that they made a huge investment in this project by transferring said:

"Totally Turkish capital and engineering, we have built our ships contractual obligations fulfilling Pakistan began production. Yet the Pakistani side of the contractual obligations, did not perform. Energy vessels to pay as they fuel also did not provide. Eleven months of own resources, our projects have tried to maintain, but payments still could not take place in March 2012 termination of the contract we had to. Meanwhile, Pakistan's Federal High Court in 2006 since the short and medium term all energy projects involving decision-taking project, including all energy rental projects canceled and our ships detained. problem amicable ways to resolve many efforts have. however, over 2 years for a while, two floating power plants, including four of our ships in Pakistan was detained. Kaya Bey was released, but a floating power plant for a total of three of our ships currently in Pakistan. trial process continues. "

Karkey, trying to cope with the energy deficit in Pakistan, opened in 2008 by winning one of the mobile energy lease auction in 2011 by a total of four ships with a capacity of 232 MW, was sent to this country to make production. Karachi, corresponding to 20 percent of the electricity needs with this project was started to produce. Then the termination of the tender had been for various reasons.

Developments Karkey Group on 11 March 2013 referring to ICSID had demanded the release of the ship. Kaya Bey was separated from Pakistan on May 16. Involved in the project while the other three ships are still being held in the country.

So Pakistanis swindled our company... and holding hostage our ships..... we should send a task force and bring our ships back.

 

[ANMDT]

So Pakistanis swindled our company... and holding hostage our ships..... we should send a task force and bring our ships back.

its something economical related to trade, not military ;So its not being hostages but being detained , also our ships ever detained in other countries due to some lacks of files, or certification or some foreigner ships detained in turkey too
(This case is because Private Power Infrastructure Board (PPIB) unlawful act against turkish company)
also "ex" manager of the corresponding institute in pakistan who caused allegedly detainment of turkish ships already jailed
Turkish ship: Pakistan seems to have lost its case | Business Recorder

Pakistan has almost lost its case against M/s Karkey Karadeniz Elektrik Uretim at International Centre for Investment Disputes (ICSID) as the World Bank's body has directed the Turkish power company not to return its vessel "Kaya Bey" to Pakistan. Well-informed sources told Business Recorder that ICSID tribunal in its provisional order number 4 of August 01, 2014 has decided that return of the vessel "Kaya Bey" to Pakistan is no longer mandatory.

Turkish firm had set up 231 MW offshore power plant at Port Qasim Karachi, but it generated far less electricity at a price of Rs 40 per unit. Sources said the office of Attorney General for Pakistan (AGP) has intimated the decision of ICSID tribunal to the Ministry Law and Ministry of Water and Power. M/s Karkey Karadeniz Elektrik Uretim that moved the ICSID has claimed $2.1 billion damages against the government of Pakistan. National Accountability Bureau (NAB) arrested three top officials, including Managing Director, Private Power Infrastructure Board (PPIB), due to their alleged involvement in financial scam of Karkey rental power plant. Two of the officials have been grated bail whereas the NAB Accountability Court has reserved judgement on a bail application filed by the Managing Director PPIB.

NAB has also filed a reference in the Accountability Court, Rawalpindi, against former Prime Minister Raja Pervez Ashraf who approved the project as Minister for Water and Power. According to Karkey's statement, an independent international expert has estimated $2.1 billion as the total amount of damages Pakistan may be liable to pay to Karkey as a result of "unlawfully" detaining the company's power ships and energy-producing vessels. Karkey is seeking compensation from Pakistan for alleged breach of its obligations under the bilateral investment treaty (BIT), alleged breach of international law, and alleged defiance of ICSID provisional measures order, in connection with Karkey's investment in a rental power project (RPP) in Karachi.

In response to its treatment by Pakistani authorities, including the ongoing detention of four of its vessels, the Turkish energy firm, Karkey Karadeniz Elektrik Uretim, known as (Karkey), had registered a claim with the World Bank-affiliated ICSID against the government of Pakistan in the beginning of 2013. The initial contract value of Karkey's power ship operations in Pakistan was $560 million for the duration of five years. The claim, as calculated by experts, should sum up the damages obtained as a result of the loss of earnings and costs associated with the detention of its vessels. Karkey's vessels have been detained in Pakistan since April 2012. The government had, however, allowed the vessel, Kaya Bey, carrying power plant to precede Dubai Port for necessary registration and maintenance.

The sources quoted the ICSID tribunal, as citing the Pakistani government of claiming that the price of three small detained ships of M/s Karkey is equal to the actual calculated amount to be recovered from the company then there is no need to return main ship to Pakistan.

Analysts are of the view that the provisional procedural order of ICSID has allowed the power vessel to sail towards wherever it wants, adding that the Turkish company will not return the vessel to Pakistani port. The government changed the law firm representing Pakistan at ICSID against 231 MW Turkish power ship of M/s Karkey Karadeniz Elektrik Uretim after the law firm hired initially failed to deliver. After consultations with the Attorney General of Pakistan, Water and Power Ministry replaced BLP law firm with Allen & Overy.

Copyright Business Recorder, 2014

So from the lines highlighted ,its shown that there will be more cases handles by ICSID , claimed damage of company results to 2.1 billion $ also as the 1st trial led Ship to sail anywhere, this means court is moving on towards favor of turkish company.

 

[-SINAN-]

its something economical, not military ,also ex manager of the corresponding institute that caused detainment of turkish ships already jailed
Turkish ship: Pakistan seems to have lost its case | Business Recorder

http://www.brecorder.com/top-stories/0/1211973/

Did you know Ataturk send a battleship to bulgaria...when they protested outside of the Turkish embassy.... our Battleship arrived and fired it's guns.... windows of the houses broken down... later Bulgarian officials escorted our embassy to battleship.

Mate, today thanks to Erdoğan everybody trying some shıt with Turkey.. you know lastly Greek invaded some Islands... before that they detained some of our citizens in the international waters...

As long as we act weak...we will see these kind of events more.

 

[ANMDT]

Did you know Ataturk send a battleship to bulgaria...when they protested outside of the Turkish embassy.... our Battleship arrived and fired it's guns.... windows of the houses broken down... later Bulgarian officials escorted our embassy to battleship.

Mate, today thanks to Erdoğan everybody trying some shıt with Turkey.. you know lastly Greek invaded some Islands... before that they detained some of our citizens in the international waters...

As long as we act weak...we will see these kind of events more.

its not about erdogan at all, we should stop relating everything good either bad to him
there is a money to be spent by Pakistan rather than freeing the ships, and none of companies would be "ok" with leaving billions of dollar, while none of countries will give that money easily just for favor to Erdogan.
Laws in seas acts different than land , its somehow international laws rather than local and usually solved by Courts in Washington DC. and similar cases often occurs between other countries, detaining a ship is like having a gurantee on the owner of, otherwise after those ships left, Pakistan wouldnt able to have any claim.
Things will be solved according to laws lets wait and see

About the islands issues, i dont have further information about that , there has been ever a discussion earlier in a thread.
Greece snatched Turkish islands reporters say

i dont have a good knowledge on terrirotial water threaties, so i just posted news no more comment than it.

 

[-SINAN-]

About the islands issues, i dont have further information about that , there has been ever a discussion earlier in a thread.
Greece snatched Turkish islands reporters say
i dont have a good knowledge on terrirotial water threaties, so i just posted news no more comment than

Sözcü: Yunanistan Türkiye'nin 16 ada ve 1 kayalığını işgal etti! - Gündem - T24

s not about erdogan at all, we should stop relating everything good either bad to him

Mate, Erdoğan is in charge..it's not the fault of interest lobbies or jews..

there is a money to be spent by Pakistan rather than freeing the ships, and none of companies would be "ok" with leaving billions of dollar, while none of countries will give that money easily just for favor to Erdogan.
Laws in seas acts different than land , its somehow international laws rather than local and usually solved by Courts in Washington DC. and similar cases often occurs between other countries, detaining a ship is like having a gurantee on the owner of, otherwise after those ships left, Pakistan wouldnt able to have any claim.
Things will be solved according to laws lets wait and see

Yeap, let's wait and see.

 

[xenon54 out]

@isoo whats the deal with holding our ships hostage i didnt get it even though i read the whole article?

 

[-------]

Did you know Ataturk send a battleship to bulgaria...when they protested outside of the Turkish embassy.... our Battleship arrived and fired it's guns.... windows of the houses broken down... later Bulgarian officials escorted our embassy to battleship.

Mate, today thanks to Erdoğan everybody trying some shıt with Turkey.. you know lastly Greek invaded some Islands... before that they detained some of our citizens in the international waters...

As long as we act weak...we will see these kind of events more.

Show of Force is necessary, I've said this a couple times already in the months before during ISIS hostage situation. You didn't agree with me then.

 

[ANMDT]

@isoo whats the deal with holding our ships hostage i didnt get it even though i read the whole article?

Its claimes the company doesnt provide sufficient energy according to signed deal,but the fact,there wasnt any payment,or fuel deliver by Pakistan to ships as its again mentioned in same deal .
1st obligation of deal was to built ships and move to pakistan shore,that is done on time; but then expected delivery of sources, which is obligation of pakistan's institues ,didnt happen. Company provided its sources for 11 months, finally PPIB of pakistan object to high council,and ships are detained.
ships are detained with claim of " lack of energy production, not meet with issues in deal " since its local courted decided so, and in waters of pakistan, the ships are detained.
but finally international courts gave 1st decision to free main ship of fleet , experts reported rest of ships will be free ,and probably a find of 2 billions at least will be paid by pakistan.

Show of Force is necessary, I've said this a couple times already in the months before during ISIS hostage situation. You didn't agree with me then.

Bro , all countries in UN, fullfills the rules of IMO , mandatory of rules in international waters and a Rule enforcer of UN about maritime and trade.
So according to these rules, a country has rights to detain a ship, that doesnt fullfill IMO rules, or local maritime trade rules. And follows the actions taken by local courts .
So this issue doesnt need any force or loud out from government,but just international court will speak out in maritime things are a little expensive, if local court done somethng wrong, the cost ,as you see, increases to 2 billion

 

[-SINAN-]

Show of Force is necessary, I've said this a couple times already in the months before during ISIS hostage situation. You didn't agree with me then.

Mate, i believe show of force is unnecessary for ISIS, we should directly apply force on them...

But they have hostages....