A Japanese-style recession but without the wealth

Although Bulent Ecevit’s ruling coalition has signed up to an impressive programme of reforms, it will be years before they will be implemented or show their full effect. Meanwhile, with the banking bubble burst, Turkish companies find themselves bereft of capital. Rescue money from the IMF will mainly go towards paying off foreign debt.







Bulent Ecevit

Turkey’s political and economic environment has been calm since February 2001 when a massive, unexpected devaluation caused the Turkish lira to lose 69% of its value over the rest of the year. But the lull results from incidental rather than fundamental changes.

The IMF, for which Turkey is now the biggest loan customer, has signed a new $16 billion cheque for 2002-04. This has averted an almost certain debt default. But what happens next year and the year after that?

Turkey seems to be stuck in a Japan-style no-growth recession.

A Japanese-style recession but without the wealth

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A Japanese-style recession but without the wealth

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

The world’s best private banks for digital

Rebuilding banks from the inside out in the digital age

Eastward bound: Why Gulf banks are tapping Asia’s capital markets

Islamic Finance Innovation 2025

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