Government’s lost credibility blights economic prospect

When the world tipped deeper into recession on September 11 it found that Turkey was already there deep down in the hole – a recession veteran. Assisted by the IMF, Turkey has been trying since 1999 to overcome its worst economic crisis since the Second World War. It has had little success. Its support for the US means more funding is likely, but funding alone can’t solve Turkey’s problems.







Bulent Ecevit

The September 11 assaults on the World Trade Centre and the Pentagon were a major blow to Turkey because they worsened the international background. The two comparative bright spots of the Turkish economy, tourism and exports, both took a battering. Lenders’ heightened aversion to emerging markets forced the state treasury to scale back plans to borrow $1.5 billion by the year-end from the international market. Privatization plans were shelved indefinitely.

On the other hand, the US response to the September 11 events will have improved Turkey’s chances of getting new help from the west.

Government’s lost credibility blights economic prospect

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Thanks for your interest in Euromoney!To unlock this article:

Central Bank of Egypt’s drive for financial inclusion bears fruit

Egypt’s banking industry wants to see private sector soar

CIB’s CEO Al-Arab on realism, reform and resilience

Future capital markets infrastructure: Fungible, fractionalised and fused

Thanks for your interest in Euromoney!
To unlock this article: