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Cyprus PIO: Turkish Cypriot and Turkish Media Review, 18-08-13Cyprus Press and Information Office: Turkish Cypriot Press Review Directory - Previous Article - Next ArticleFrom: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>Turkish Cypriot and Turkish Media Review-10-13.08.18 No. 155/18[A] TURKISH CYPRIOT / TURKISH PRESSContents[A] Turkish Cypriot Press[01] Devaluation of TL continues – Occupation regime's "council of ministers" discusses measures – The "assembly" might be extraordinarily convened[02] Afrika argues that the USA puts condition to Turkey to abandon gas exploration around Cyprus[03] The occupation regime will sell more Greek Cypriot properties to foreigners[04] Columnist says that the Turkish Cypriots have chosen to live depended on Turkey[05] Akansoy: "We should not wait for another spring for a solution"[B] Turkish Press[A] TURKISH CYPRIOT / TURKISH PRESS[01] Turkey Central Bank to provide all liquidity banks need; Kalin: Turkey's economy is strong[02] Erdogan: We challenge your dollar operations[03] Cavusoglu: "US should learn they will not achieve results with sanctions against Turkey"[04] Albayrak: "No deposits will be seized"; he unveiled Turkey's new economic perspective[05] Kilicdaroglu says: "Turkey's economic problems are not only economic but also political"[06] Nationalist MHP leader slams 'attack' on Turkish currency[07] Columnist outlines Turkey's alternatives on economy[08] Meral Aksener re-elected as IYI Party leader[A] Turkish Cypriot Press[01] Devaluation of TL continues – Occupation regime's "council of ministers" discusses measures – The "assembly" might be extraordinarily convenedTurkish Cypriot daily Kibris newspaper (13.08.18) reports that the value of the foreign currencies towards the Turkish lira (TL) has reached record levels as a result of the crisis between the USA and Turkey. TL's devaluation against the dollar, the euro and the sterling pound increased the fear of businessmen that they will go bankrupt and led people to crisis, notes that paper adding that during the closure of the markets on Friday in the occupied area of Cyprus, the dollar had climbed to 7 TL, the euro to 7,7 TL and sterling to 8,50 TL. The dollar in Turkey increased to 7,30 TL last night, while the euro and sterling reached 8,40 TL and 9,20 TL respectively. In the websites of some banks, the sterling increased to 10 TL.Commenting on the statements made by Turkish Minister of Finance, Berat Albayrak regarding Turkey's "new economic model", Turkish Cypriot economists said that Albayrak's statements included no measures which could "extinguish the fire" of the foreign currencies. They also pointed out that Turkey and the occupied area of Cyprus are facing the risk of serious inflation pressure in the short term. Meanwhile, Turkish Cypriot daily Vatan newspaper (13.08.18) reports that self-styled foreign minister and "government spokesman", Kudret Ozersay told illegal TAK news agency that the occupation regime's "council of ministers" would meet extraordinarily today to discuss the steps, which will be taken regarding the economic developments in the "country". He said that the "council of ministers" will discuss the issue of extraordinarily convening the "assembly" regarding the economic crisis, because it intends to secure social consensus for the measures it will implement on the economy. Thechairman of theopposition National Unity Party (UBP), Huseyin Ozgurgun called on the political parties and the organizations to do their duty and criticized the "government", which he accused of continuing its vacations showing as pretext that it waits for a meeting with Turkish officials to be arranged. Mehmet Cakici, chairman of the Communal Liberation Party – New Forces (TKP-YG) said that especially the shopkeepers and the small businesses are in a difficult situation because of the increase of the value of the foreign currencies and the prices of electricity. Cakici warned that collective bankruptcies will take place because of the economic crisis and added that they are on the verge of "social explosion". Moreover, illegal Bayrak (13.08.18,
http://www.brtk.net/?englishposts=pm-erhurman-holds-press-conference-2)
broadcast that "prime minister" Tufan Erhurman and the chairman of the
occupation regime's "central bank", Rifat Guney held a press conference
this morning before today's extraordinary "cabinet" meeting to discuss
possible measures to minimize the impact caused by the "sharp fall"
in the value of the TL.
Erhurmansaid that a series of measures in the form of "delegated
legislation" or "statutory decrees" will be introduced later this
week. Pointing out that the "council of ministers" will be discussing
possible measures aimed at preserving the public's purchasing power
and preventing the shrinking of the market, Erhurman noted that they
will also be deciding on whether to convene the "parliament". "However,
the measures will most likely be in the form of statutory decrees or
delegated legislation", he added.
In his statements, Guney argued that all the banks operating in the
occupied area of Cyprus "are standing strong" and that "there are no
problems". He said that the banks are currently operating without any
restrictions or limitations and added that should the need arise the
"central bank" will be giving all the support the banks might require
or need.
Under the title "Eyes are in Turkey now", Turkish Cypriot daily Yeni
Duzen newspaper (13.08.18) reports that economists and former "ministers
of finance" agree that the Turkish Cypriots should ask for more money
from Turkey. Former "minister of finance", Zeren Mungan recalled that
almost one billion TL for reforms exist in the "protocols", which the
regime signed with Turkey. He argued that they could take this money by
implementing these reforms. He also expressed the belief that Turkey will
support the "public finance" on issues deriving from the use of the TL.
Former "minister of finance", Ersin Tatar said that they should meet with
Turkish officials because the breakaway regime implements "programs"
which it has agreed with Turkey. He noted that the targets regarding
the foreign exchange in these programs have become totally different
and added that therefore these programs "are meaningless now".
Under the title "We are in an economic salvation war", Turkish Cypriot
daily Star Kibris newspaper (13.08.18) reports that it is difficult for
the war of sanctions implemented by the USA to end within a short period
of time and argues that the crisis could be turned into an opportunity for
investments in the field of tourism in the occupied area of Cyprus. The
paper writes that 20,000 beds exist in the field of tourism and claims
that they should act quickly to increase this number as "the crisis is
a unique opportunity".
(I/Ts.)
According to the paper, the USA demanded the following conditions from
Turkey in order not to impose sanctions:
The immediate release of 20 agents involved in the initiative of the
2016 July 15 coup including pastor Brunson. The USA has given a deadline
to Ankara until Wednesday (August 15th) for the release especially
of Brunson.
Turkey to enforce a comprehensive embargo to Iran.
Not to purchase the S400 from Russia.
Ankara's Palestinian policy to be revised.
To abandon natural gas and oil exploration around Cyprus.
To consent for Halkbank's punishments.
Ankara to close the file of demanding Fetullah Gulen's extradition.
To grand licenses to American companies in critical quarries that Turkey
possesses.
(DPs)
Baybars stated that they are carrying out some work now for exiting from
the economic crisis and that they will make an arrangement according to
which they will increase the number of the detached houses that foreigners
have the right to purchase in the occupied area of Cyprus from one to
two and the number of apartments from two to three. She said that their
target is to complete this work by the end of the week and then to pass
the arrangement from the "council of ministers".
Columnist Sener Levent commented on the issue in his article
in Afrika (12.08.18) under the title "More foreigners than the
foreigners". Wondering which the status recognized [by the occupation
regime] to the Greek Cypriots in the occupied area of the island is,
Levent writes, inter alia, the following:
"Does a Greek Cypriot not have the rights which the British, the French
and the Russians have here? […] Let us see those from Turkey. Which is
their status? I am not asking about those who acquired citizenship. They
have anyway abundantly taken what they would take. Moreover, they have not
taken two detached houses, three apartment and things like that. [They
have taken] Hotels. Villas. Fields and plots of lands of many donums
. They are the ones who took everything which had been stolen with the
force of arms from the Greek Cypriots. To whom do you think that the
properties which will be sold to foreigners now belong? […] To Greek
Cypriots of course. […] Behold another law now. Foreigners will be able
to acquire two detached houses or three apartments on the Greek Cypriot
lands-booty. Russians will acquire, British will acquire, everybody will
acquire. However, the real owners, the Greek C ypriots will not be able
to acquire. […]"
(I/Ts.)
"[…] If the TRNC governments are directed from Turkey through a remote
control, or if they are roped up and when the rope lefts over they walk
and when the rope is straightened they stop, is the TRNC a state? Then,
are the TRNC governments a government? Then, is it not everything
pretended? Then, are those who say that 'the TRNC is a subordinate
administration' unfair?
The blame is on us. We have not tried to stand on our own feet. We
have not said: 'let us gain less but let us administrate ourselves,
let us produce, let us support investments, let us remain standing'. We
have said: 'let some ones give us and let us be relaxed'. Instead of
choosing an honorable life, we preferred the life of 'being in need',
'a parasite'. And now we are complaining. Many people do not want a
solution to be reached in Cyprus. They say that when there is a solution,
we will be obliged to renounce some things. They say that the solution
has some 'costs', strike fear and prefer to live the 'parasite' life. Now
we are not in the position of complaining for the fact that the foreign
currency crisis in Turkey influenced us much more and of the fact that
the government there cut us the money for education. We are the ones
who have chosen living like this.
In spite of all of these, however, I want to recall the Turkish officials
that children who are their own citizens also exist among those who are
waiting for education and I call on the Turkish officials to reason. There
can be no revenge through education. All children will be punished and
not only a politician or a party. If a politician or a party has a fault,
let the voters in their own country punish them".
(I/Ts.)
Evaluating the Cyprus negotiation process, Akansoy noted that as long
as the incidents are being seen through a nationalistic frame, the
solution process is losing its dynamically growing. He further said that
the Guterres framework offers the opportunity to both sides to make a
progress, but there is a lack of confidence between the leaders, claiming
that Anastasiades could not take a step and show leadership in the opening
of Akinci on the territorial issue at the Mont Pelerin negotiations.
Noting that the nationalists are the reason for the division of the
island, Akansoy added that this island has been divided by the effect
of those who are drunk with great nationalist discourses. He stressed:
"The solution is a reality and a necessity". He also said that it is
necessary to work harder and jointly, warning on the wasting of time.
(DPs)
It added: "Banks will be able to borrow foreign exchange deposits in
one-month maturity in addition to one-week maturity. If needed, the
Central Bank may increase lenders' current foreign exchange deposit limits
-- $50 billion -- and improve utilization conditions. To provide banks
flexibility in their collateral management, the Central Bank revised
discount rates for collaterals against Turkish lira transactions, said
the statement."
The bank added: "Through this regulation, the discounted value of banks'
current unencumbered collaterals is projected to increase by approximately
3.8 billion Turkish liras ($555.4 million)." The Central Bank also raised
foreign exchange deposit limits for lira transactions of lenders from
€7.2 billion ($8.2 billion) to €20 billion ($22.8 billion).
The Central Bank also lowered Turkish lira reserve requirement ratios
by 250 basis points for all maturity brackets, and reserve requirement
ratios for non-core FX liabilities by 400 basis points for up to
three-year maturities.
The bank also announced that it will continue its intermediation in the
foreign exchange deposit market.
"Accordingly, through the intermediation of the Central Bank, banks will
be able to borrow from and lend to each other at the FX deposit market
as per the rules set by the Implementation Instructions on the Foreign
Exchange and Banknotes Markets," it added.
It said: "Banks will continue to purchase foreign bank notes from the
Central Bank via foreign exchange transactions within their pre-determined
limits at the Foreign Exchange and Banknotes Markets."
The bank also said that it raised the maximum average maintenance facility
for foreign exchange liabilities to 8%.
"With this revision, approximately 10 billion Turkish liras ($1.46
billion), $6 billion, and $3 billion equivalent of gold liquidity will
be provided to the financial system," it added.
Market depth and price formations will be monitored by the Central Bank
closely, which will take all necessary measures to protect financial
stability, if needed, said the bank.
On the same issue, Turkish daily Sabah newspaper (13.08.18,
https://www.dailysabah.com/economy/2018/08/13/turkeys-economy-strong-steps-taken-for-financial-stability-pres-spox-kalin-says)
reports that Turkey's economy is strong and no one should pay attention
to speculative news and moves, Presidential Spokesman Ibrahim Kal?n
said Monday on his official Twitter account. He added that the Treasury,
Central Bank, Banking Regulation and Supervision Agency (BBDK), Capital
Markets Board (SPK) and other institutions are taking necessary steps
for financial stability.
"It is making an operation against Turkey … Its aim is to force Turkey
to surrender in every field from finance to politics, to make Turkey and
the Turkish nation kneel down", Erdogan said in a speech at the ruling
Justice and Development Party's (AKP) meeting in the Black Sea province
of Trabzon on Aug. 12.
"We have seen your play and we challenge you," he added, referring to
the fluctuation of the Turkish Lira against the dollar. (…)
The Turkish Trade Ministry called the move "illegal," pointing to the
World Trade Organization (WTO) rules.
Erdogan stressed that the Turkish economy has not come to the edge of an
economic crisis, pointing to the increase in manufacturing, exports and
tourism revenues. "They have been trying to achieve what they failed to
do through provocations and a coup attempt with money now," he said.
"If you advance upon us by the dollar, we will look for other means to
carry on our business," he added.
Relations between Turkey and the U.S. have been tense over a range of
issues, from the Syrian conflict to the imprisonment of American pastor
Andrew Brunson.
Erdogan rejected requests to return Brunson to the U.S., recalling the
indictment of terrorism charges against him.
He also accused the U.S. of cooperating with terrorist organizations
for its support to the Syrian Kurdish People's Protection Units (YPG)
and the Democratic Union Party (PYD), which Turkey deems as the offshoots
of the outlawed Kurdistan Workers' Party (PKK), who Turkey, the EU and
the U.S. identify as a terrorist organization.
Erdogan had warned the U.S. is "changing a strategic NATO partner with a
pastor" in his speech in the Black Sea province of Ordu on Aug. 11. "We
only bow down before God. It is wrong to try to chasten Turkey for a
priest here. I am addressing the U.S. once again: It's a shame. You are
changing a strategic NATO partner with a pastor. We will only do whatever
justice requires," he had said.
"It's impossible for us to accept these sanctions and threats. Our
expectation from the U.S. is to remain loyal to our traditional friendship
and our NATO alliance," Foreign Minister Mevlut Cavusoglu said in an
address to the Turkish Ambassadors during an annual conference in Ankara
on Aug 13.
(…)
"The U.S. is in a confusion. 'Should we resolve this problem with Turkey
or should we maintain it until November elections?'" Cavusoglu said,
referring to mid-term polls for the U.S. Congress.
The Minister stressed that the U.S. should learn that they will not
achieve any results with sanctions while calling for more dialogue and
diplomacy. "Turkey has done enough to repair ties", he said, underlining
that the culture of compromise requires both sides' steps for resolving
questions.
Cavusoglu also recalled that the U.S. has not taken any concrete step
on Turkey's extradition request for Fethullah Gulen, believed to be
the mastermind of July 2016 coup attempt and has acted contrary to the
alliance regarding the fundamental security issues of Turkey.
"Deposit money will not be seized. Foreign currencies in bank accounts
will not be converted into Turkish liras. However, those lies will be
fought off until the end in the judicial sphere," Albayrak tweeted.
Albayrak said an action plan is coming into effect starting early
Monday. "Our institutions will take the necessary steps to relax the
markets," he said.
Albayrak explained that they prepared the plan together with banks
for the real sector, the sector the most affected by recent currency
fluctuations. "We will take the necessary steps rapidly, together with
our banks and the Banking Regulation and Supervision Agency," he added.
Meanwhile, Turkish daily Sabah newspaper (10.08.18,
https://www.dailysabah.com/economy/2018/08/11/new-economic-approach-pledges-tight-monetary-fiscal-policy-central-bank-independence)
reported that a new economic path for the Turkish economy devised by
Treasury and Finance Minister Berat Albayrak and his team in consultation
with all stakeholders, including leading businesspeople, prominent
scholars and relevant business associations, was announced on Friday.
Dubbed the new economic approach, which aims to write a new economic
story for Turkey, the plan emphasizes strong commitment to tight monetary
and fiscal policies to ensure economic rebalancing in the short term
and emphasizes the independence of the Central Bank of the Republic of
Turkey (CBRT). While Turkey's new detailed Medium-Term Program (MTP)
will be announced in September, the new economic approach outlines a
five-year foundation for the implementation of the program. (…)
One of the strong features of the new economic approach will be its
sustainability, Albayrak said. He explained that the economic model will
be able to generate strong reflexes and strategies while it will promote
transformation in accordance with daily necessities.
The Minister further explained the foundational principles of the new
economic approach that will guide the implementation of the Turkish
economy's macro policies. Strong communication with the markets and
ensuring confidence in markets will be the first principle and will be
strengthened with realistic policies compliant with market rules.
"Another principle is to ensure the full independence of monetary
policies. The independence of the CBRT is of utmost importance. We will
prioritize strong stability to enable all the financial sector actors
to maintain their operations effectively," Albayrak said.
The Central Bank should closely monitor all the processes to sustain
price stability, he added. Moreover, other principles will focus on
budgetary balance, tight monetary and fiscal policies and harmonized
fiscal and monetary policies. (…)
The Minister also previously said that new instruments will be introduced
to deepen the Turkish capital markets as the country aims to draw more
overseas investments to domestic markets. (…)
Albayrak underlined that public spending will be planned according to
the criteria predicted by the new economic model. Referring particularly
to the incentive systems that are covered by the government budget,
if a project manufactures technological products, increases exports,
and contributes to reducing the current deficit, and then it will be
granted incentive.
"One of the key phrases of this new era is that we will manage the
investments and expenditures more effectively in terms of the determined
criteria," he said. "Expenditures are coming back to the Treasury and
Finance Minister. All Ministries and public institutions will continue
on their path in the harmonious way we have underlined."
Albayrak explained that the new economic approach will have three pillars
consisting of economic rebalance, sustainable growth and a fairer share
of welfare.
While the economic rebalance will cover the period of 2018-2019,
sustainable growth is aimed for 2020-2021 and the fairer share of wealth
will be the main goal for the period of 2022-2023.
In the first phase, "economic rebalance," Turkey will fight inflation,
ensure fiscal discipline and lower the current account deficit to provide
economic balance, Albayrak said. "We will recover the environment of
confidence and boost productivity and savings," he said adding, "Turkey
also will deepen capital markets to diversify sources for financing
public debt."
According to the Minister, the fields of strategic growth will be
identified, especially those with value-added, strategic and technological
output in the second phase which will prioritize sustainable growth. "We
will focus on exports and cutting the current account deficit," he added.
In the third phase that will cover 2022 and 2023, economic policies will
ensure a fairer share of wealth. To that end, the country's tax system
will be also simplified and the government will aim for a productive
Turkey, he stressed. Saying that Turkey will start a transformation
process in its tax system, Albayrak explained that this would result in
a fairer tax system.
The number of indirect taxes will be cut, while the government will fight
the underground economy and bring down unemployment. The last and most
supporting element of this three-pillar approach will be the qualified
human resource that will be a key in the successful implementation of
all phases.
He added that skilled human resources and a strong society will support
the three main phases of Turkey's new economic perspective.
Albayrak also announced that a new financial regulatory authority will
be established in the upcoming period. The legislative framework has
been prepared and will be presented to the Parliament in October. The
new financial authority will work to enhance Turkish financial markets
and will implement best global practices. (…)
"If the Turkish Lira is now only a piece of paper against foreign
currencies, its reason is the one-man regime," Kilicdaroglu posted on
his official Twitter account on Aug. 9.
"The crisis Turkey is experiencing today is not only an economic
crisis. We have to make the diagnosis right. This crisis is a political
crisis. That is why we are saying Turkey has not been ruled, it is
skidding," he added, criticizing the ruling AKP's economy policy
decisions.
He voiced the main opposition's concern over the independence of the
Central Bank, stating that in their 16 years of rule, the AKP has made
the economy dependent. (…)
He accused President Recep Tayyip Erdogan of "intervening in the Central
Bank's decisions" and "paving the way for those without foreign exchange
earnings to go into debt on foreign currencies".
He also criticized the ruling AKP's construction policies, stating
Erdogan "gave pro-government contractors a Treasury guarantee over
foreign currencies".
His remarks came hours after U.S. President Donald Trump ramped up his
attack on Turkey by raising steel and aluminium tariffs on its NATO
ally. "Economic terror is being created on the pretext of a pastor,"
Bahceli said referring to American pastor Andrew Brunson who is under
house arrest in Turkey.
"The unfinished treason on July 15 [failed coup in 2016] is being
restructured."
Bahceli called on the Turkish people to unite against "the artificial
jump" and embrace the Turkish lira. "We need to be in solidarity. We need
to show clearly and categorically that the artificial jump in currencies
cannot take this country as hostage," Bahceli added.
The MHP leader argued that the increase in currencies was "a political
and diplomatic blackmail" and not based on economy. "We cannot and will
not be submissive", he added.
Yetkin argued that the rift with the U.S. is not the only reason for
the currency fever, but interventions by the Trump administration have
been used as a weapon to further weaken the lira, with the purpose of
putting political pressure on Erdogan.
Secondly, Erdogan has a point when he said Turkey is not without
alternatives. The remark is similar to that of Ismet Inonu, the
Turkish Prime Minister of 1964, who in reply to a threatening letter
by U.S. President Lyndon Johnson (because of a crisis in Cyprus) said,
"A new world could be found and Turkey can take its place in it."
Turkey was not established with the help of the U.S. and will not cease
to exist without its help.
Columnist outlines what would be Turkey's alternatives:
"The first question is, would Turkey still be a part of NATO, the Western
defence alliance, while being at odds with the U.S.? If Turkey is out
of NATO, that would be a tremendous gain for Russia for example, and a
loss for EU countries, which heavily depend on NATO for their defence,
especially when considering their fear of Russia.
The second question is about the EU economies. If the Turkish economy
goes down, in which way would it influences the EU banking system,
imports and exports?
The third question: Turkey is still a candidate for the EU, but only
on paper. Their political relations are not good at all. If alliance
relations between Turkey and the U.S. will be damaged, what could be
the political implications of that to Turkish-EU relations?
Would Russia, China, and perhaps Iran be reliable partners for
Turkey? Both Russia and Iran have been historical rivals in the region
for centuries, even before the U.S. was even a dream. In a way, the near
history of Turkey is wars with Russia and alliances with the Western
powers against it, and vice versa, alliances with Russia against the
Western powers, then the United Kingdom and France. And China is the
rising power in global geopolitics but Turkey may not be an indispensable
partner for it in Beijing's relations with the U.S. and the EU.
If Trump and Pence think that when they threaten Erdogan with economic
and military sanctions they could instigate a popular uprising against
him, that means they and their advisers do not even have a clue about
the psyche of societies in the old world, including Turkey. It is more
likely to serve a rally-around-the-flag factor in this part of the world.
There is not only one opposition party slamming Erdogan for challenging
Trump. For example, Meral Aksener of the Good (IYI) Party said, "We will
not leave punishing our boy to strangers". On the other hand, Trump,
as the leader of the world's biggest economic and military power, has
put himself in an unnecessary impasse by linking the preferences of a
voter base to the collective anger of a nation, allowing a pastor to
squeeze in between them.
There is a lot to be lost in both parties if the brinkmanship-like rift
continues. I am not sure whether a call for all to be calm will work at
this point."
Aksener, the only candidate to run, received 881 votes. The seven
remaining votes were ruled invalid. Aksener had 7.2% of the vote in
Turkey's last presidential election.
In its first election, the IYI Party made it to Parliament with over 40
Deputies and received 10% of the votes as part of the "Nation Alliance"
with the Republican People's Party (CHP) and the Felicity Party.
TURKISH AFFAIRS SECTION
(DPs/ AM)
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