Turkey

The National Company Law Appellate Tribunal (NCLAT)RWednesday directed IDBI Bank, the lead lender of debt-ridden Jaypee Infratech, to file an affidavit listing out new terms and conditions if a fresh round of bidding is conducted, Business Standard reported. A two-member bench headed by Chairman Justice S J Mukhopadhaya has asked IDBI Bank to file an affidavit by Friday in this regard. The appellate tribunal has listed the matter for next hearing on Monday. "Counsel appearing for lenders is allowed to file new terms and conditions in case fresh bidding takes place," the bench said.

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More than a year after the onset of an economic calamity that has shaken the once-indomitable hold of Turkey’s strongman president, Recep Tayyip Erdogan, this nation of 80 million people remains stuck in uncomfortable proximity to crisis, he International New York Times reported. The latest indication came on Monday, as the Turkish currency, the lira, surrendered more than 3 percent of its value against the dollar in early trading in Asia before slightly recovering. The drop followed Mr. Erdogan’s abrupt dismissal of the nation’s central bank governor on Saturday.

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After a year of relentless currency crisis, a credit freeze and slide into recession, some global investors are betting Turkey has weathered the worst of its biggest financial and economic shock since its 2001 banking collapse - by accident or design, Reuters reported. While Turkey faces numerous unresolved political and economic challenges, the more extreme fears of a sovereign funding squeeze that threatened national bankruptcy and international bailout, or even a return to its dark past of hyperinflation, appear to have eased.

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The erosion of Turkey’s creditworthiness is a warning signal for South Africa, and investors are ignoring it, according to Informa Financial Markets. The cost of insuring the country’s debt against non-payment dropped to the lowest in 13 months this week, even as a funding crisis at Eskom Holdings SOC Ltd. strains government finances while the economy struggles to recover from the worst quarterly contraction since the 2008 financial crisis, Bloomberg News reported.

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Turkey has announced plans to sell debt in the international bond market for the first time since March as the country seeks to take advantage of a thaw in investor sentiment and a sharp drop in yields across developed markets, the Financial Times reported. The country has hired BNP Paribas, Citigroup and HSBC to sell a dollar-denominated bond that will mature in 2024, the Ministry of Treasury and Finance said. It will mark the fourth time this year the country has sold paper in currencies other than the lira.

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Turkey’s banking association said on Friday that the restructuring of the mounting debts of the country’s top football clubs was moving forward, adding that the debts would be matured for five years, with two years without paying the principal on the loans, Reuters reported. In January, the Turkish banking Association (TBB) said Turkey’s top football clubs, such as Fenerbahce and Galatasaray, will have their debts restructured but not written off, in a move to ease their spiralling debts.

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Turkey’s credit score slid deeper into junk as Moody’s Investors Service cut its assessment, citing an increasing risk of a balance of payments crisis and a government default, Bloomberg News reported. Turkey’s long-term issuer rating was lowered to B1 from Ba3 by Moody’s, the rating company said in a statement on Friday. The outlook on the rating is negative. Turkey is now four notches below investment grade, on par with Jordan, Greece, and Uzbekistan. “The balance of risk is firmly tilted to the downside,” Moody’s said.

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Turkey’s industrial giants are struggling to keep a lid on soaring finance expenses that are threatening to engulf operating income as the lira’s depreciation pushes up foreign-borrowing costs, Bloomberg News reported. Istanbul’s top 500 industrial firms, which together account for almost half of the nation’s exports, reported finance expenses of 95.8 billion lira ($16 billion) last year, compared with 35.2 billion liras in 2017, according to Istanbul Chamber of Industry Chairman Erdal Bahcivan. The ratio of financial costs to operating profits almost doubled to 88.9%, he said.

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Turkey’s battered economy is set to leave recession later this month thanks to a politically-driven surge in bank lending and public spending — but analysts warn that key vulnerabilities remain unaddressed and the recovery is likely to be shortlived, the Financial Times reported. Growth figures due to be published at the end of May are widely expected to show that the country emerged from its first contraction in a decade in the first quarter of 2019.

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Turkish banks disagreed on almost everything with potential investors when they met for the first round of talks about unloading a mountain of bad loans, according to people who were at the gathering in Istanbul last week, Bloomberg News reported. The deadlock between potential buyers, including Goldman Sachs Group Inc. and Bain Capital LP, involved the price and structure of any transaction, some of the people said, asking not to be identified because the gathering was private. Attendees couldn’t even agree on the definition of a non-performing loan, one of the people said.

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