Turkey has weathered the financial crisis better than any had expected and it has emerged the other side with its reputation enhanced. In a neighbourhood where much has gone wrong, Turkey has seemingly done everything right. Much of Turkey’s current success stems from how it rebuilt its financial system after the collapse of 2001. It eschewed foreign debt, tamed inflation, strengthened the local banking system and created strong, independent regulators. All these factors have allowed the country to escape the fate that so many other Eastern...Read more
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Turkey’s IPO market has never lived up to its potential. Official moves to get more companies listed and instill an equity culture face many difficulties. But bankers are confident that a new crop of IPO candidates could bring the market to life, despite the problems facing equity markets around the world. Nick Lord reports.
Turkey is unlikely to become a major player in the international capital markets until it manages to develop its domestic capital markets. In the local equity markets, serious efforts are underway to improve liquidity and sophistication. However, entrenched obstacles need to be overcome before meaningful progress can take place. One statistic perhaps best sums up the dichotomy at the heart of Turkey’s domestic capital markets: foreign investors own 70% of the domestic equity market. This shows that foreign, institutional investors approve the...
The Turkish sovereign has had a productive 2010. It has nearly met its yearly funding target while reestablishing itself with the international market through a serious of well timed and executed transactions. It even became one of the few countries in recent times to experience a rating upgrade. Nick Lord reports.
Turkey’s government mixes a philosophical belief in the need for private ownership with a practical imperative of raising money. The resulting privatisation spree has already created quite a buzz, and will continue to drive most of the activity in Turkey’s capital markets for many years to come. Nick Lord reports.
Turkey’s banks have made their annual excursion to the syndicated loan market. The shape of this market in the future will be determined in large part by the extent to which they consider long term bond financing as an alternative. The speed of this transition depends entirely on the regulator, which, for now, is keeping the bond market at arm’s length. Nick Lord reports.