One of Turkey's top bankers has resigned after strongly criticizing the Minister of Economy's comment that the state does not want to resort to "police-type tactics" against banks that don't limit their loan growth rate. The banker, Ersin Ozince of Isbank, tied the minister's comments to the recent controversial arrest of journalists in Turkey, who were detained as part of an investigation into an alleged coup plot. More details here.
Dow Jones's Joe Parkinson has a very interesting post up on the Wall Street Journal's "New Europe" blog looking at the low number of Turkish youths who are making it through high school and what that means for Turkey's economy. From his post:
Turkey’s rapid rebound from recession — which saw its economy tie with China in the second quarter for the fastest growth in the G20 — has attracted glittering headlines this year.
Rightly so, but labor force data published this week may prompt some sobering thoughts for the expanding herd of Turkey bulls who say the economy’s unlocked potential and youthful population make it the future ‘BRIC of Europe.’
Blame it on the lira. While Turkish currency was once the butt of travelers' jokes, up until only a few years ago the victim of hyperinflation and denominated in the millions, today the lira is not only holding its own but finding itself increasingly strong, especially compared to the dollar. As recent visitors to Turkey have probably found out, though, the rise of the lira has its downside: higher prices. The New York Times has the scoop on why that Turkish rug you saw in Istanbul's Grand Bazaar was so expensive.
