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Turkey's alternative against investor-defrauding financial institutions

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19.05.2017

President Recep Tayyip Erdoğan reiterated Turkey's theses in his meeting with U.S. President Donald Trump, which is considered to be a 'historic' summit. Turkey will not compromise; the thinking is that a country that defends its interests until the end also means that it has a good economic path. However, exactly for this reason, an unfair attack is being carried on the Turkish economy and its institutions nowadays.

One of the most unfairly criticized practices within this framework is the steps taken by the Credit Guarantee Fund (CGF). The second is the new and active monetary policy framework developed by the Central Bank of the Republic of Turkey (CBRT).

For instance, a Far Eastern investment company said in a recently published report, "In addition to this more cyclical concern, we are also worried about the authorities' 'insistence' on sustaining credit flow at the expense of prudent macroeconomic policies, as suggested by the recent plans to allow the CRBT to purchase securitized loans in order to inject liquidity into the banking system."

This statement is incoherent in all its aspects. First of all, have you heard from the CRBT itself that it has such a plan? It is not possible to have heard that, because the CRBT does not have such a plan. Do not mistake the CRBT for the technically collapsed central banks whose balance sheets are full of bad assets. The CRBT has never had and will not have one in the future.

The CRBT is an independent institution and any comment and view except for its official statements is not its concern. Without knowing this, why mislead people? Don't you think that this attitude is a kind of fraud? If you mean the CGF's practices concerning the credit expansion, this occurs with a completely non-public dynamic. The CGF has a very advanced rating system.

In addition, the CGF loans are largely circulated by private banks rather than by public banks. Do you think that a government authority in Turkey can set the amount of credit that banks with foreign partners must provide? Now, organizations that publish such made-up reports are becoming 'aggravated swindlers' who first deceive their own investors. However, this does not concern us, but rather the investors who rely on them. We must focus on what political motives push them to publish such shady reports.

To understand this, I advise you look to the 13th International Defense Industry Fair 2017, which was held under the auspices of the Turkish Presidency in Istanbul last week. Hosted by the Ministry of National Defense, the IDEF fair has become a tradition and it witnesses new products that surpass the previous year's........

© Daily Sabah