After five years of its most stable government in decades, Turkey faces both presidential and parliamentary elections this year, with a possible return to coalition government before the year end. Political concerns mean that it will be difficult to make tough economic decisions, but if the achievements of the outgoing government are going to be built upon, the country still has a lot to do. The latest political news should help. The recent decision by Prime Minister Recep Tayyip Erdogan not to stand for President is positive for markets. The...Read more
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After five years of its most stable government in decades, Turkey faces the challenge of presidential and parliamentary elections this year, and a possible return to coalition government. Political concerns mean that it will be difficult to make tough economics decisions, but if the achievements of the outgoing government are going to be built upon, Turkey still has a lot to do. Paul Farrow reports.
Turkish banks are very much in demand. The last 18 months have seen a clutch of M&A transactions that have brought international banking expertise onto the Turkish high street. That foreign investment is likely to continue, but the focus is also on how banks are adapting to the changing economic circumstances. Paul Farrow reports.
Country-specific factors including EU accession, IMF relations and domestic politics have diminished in importance as Turkish markets take their lead from general changes in risk appetite. But while the country continues to benefit from the ongoing EM spread tightening trend, its high-beta status means that it remains EEMEA’s primary casualty during times of volatility. John Weavers.
Turkey’s local markets have almost fully recovered from their severe sell-off in spring 2006, but the lira and Turkish rates remain first in the firing line whenever sentiment turns against the emerging markets. John Weavers reports.
Since its resurgence in 2005, the Turkish lira bond market has occupied a dominant position within the niche currency arena. Levels of issuance continue to be encouraging, and liquidity is growing as more and more participants look to get involved. With no dark clouds on the horizon, this situation looks set to continue, as Philip Wright reports.
Securitisation and the development of covered bonds are often mentioned as the most important area of development for Turkish capital markets. Most observers agree that the potential is there, but it would be a mistake to assume that a wave of issuance is about to break, particularly given the embryonic stage of the housing loan market. Paul Farrow reports.
Typically characterised by MLA-heavy loans to banks, the Turkish syndicated loan market has been one of the most dynamic in Europe and the Middle East this year. With falling returns elsewhere highlighting the relative attractiveness of the market – and the country's belatedly successful privatisation programme aiding confidence and providing supply – 2007 is set to be a watershed year. David Cox reports.
Increasing political stability, impressive economic growth and a strong recovery since the sharp correction of a year ago, all suggest a buoyant ECM market in 2007. With a liquid local market and the possible return of GDR programmes, bankers remain upbeat, although issuance is likely to remain sporadic, with elections impacting the May and November issuance windows. Helen Bartholomew reports.
The passage of a Mortgage Law this March was greeted with much excitement by bankers eager to see the development of a covered bond market for Turkey. But deals may be longer coming than the optimists imagine. Paul Farrow reports.