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The moment of truth is approaching for the Turkish economy

The two questions are related, for the foreign banker and the governments desire to throw a life preserver to president Tayyip Erdogan is interrelated with the

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The moment of truth is approaching for the Turkish economy

The two questions are related, for the foreign banker and the governments desire to throw a life preserver to president Tayyip Erdogan is interrelated with the decision in Istanbul. If the regime ”steal” the country's most important constituency, so investors will think twice before they send even more dollars to the debt-ridden republic.

One of the factors that have the greatest significance for främlingars risk appetite is the organisation's independence. Can a foreign company who happen in a legal dispute with the government or with competitors expect objective treatment before the right one? The answer in Turkey is nowadays no, the courts are government bodies.

At the beginning of the ruling AKP party's hegemony, the handling of the economy by the professionals, mainly the minister of finance Ali Pipe. During his time acted as the riksbank professional, growth was good and the Turkey's credit rating steps.

But gradually laid Erdogan in the riksbank's decisions, in particular as regards the key interest rate. When the experts wanted to raise the rate so he called it ”a conspiracy from the international bankränte-league”, who wanted to maximize profit and harm employment.

Turkey has not yet asked the international monetary fund for help, but inflation is now at twenty percent and the country's indebted companies are not able their dollar loans to foreign banks. The economy is expected to shrink two percent this year and billions of dollars from the foreign exchange reserve is thrown into the växlingsmarknaden to prevent the local lira to crash.

Photo: Ozan Kose/AFP

that no bailout is in the news, until Erdogan and his son-in-law, minister of finance, Berat Albayrak, stopped to put his nose in the wet in terms of the riksbank's care.

If they refuse, it is still not certain that they get the last word. Erdogan and the AKP no longer has a monopoly on important decisions. Right-wing HDP's patriarch Devlet Bahceli and säkerhetsetablissemangets elite have increasingly to say.

There is another bitter pill regime must swallow it before it can become the talk of any western involvement in the recovery process. Turkey will not be helped on its feet until it abandons its plans to buy the Russian team the S-400. A NATO-country can't protect its airspace with a system built to shoot down NATO planes and missiles, called it in Brussels.

and despite an increasingly worrying exodus of younger professionals – make the Turkish industry great progress in a number of areas. The other day visited the DN a high-tech plant in Israel. The chief engineer told us that you had previously purchased load-bearing parts of the mechanism from Germany:

" But now, we have tested the same instrument from Turkish workshops. The Turkish stuff is both better and cheaper.

that export and earn international currency to meet their loans and get new ones. But the great and dangerous Turkish dollar-debt burden shouldered by the thousands of small businesses which only act on the Turkish market. So many of them being tempted to take loans from foreign banks was a purely okynne, fueled by the arrogant regime. This, according to the IMF experts, yet one more reason to keep the political leaders away from the riksbank's decision-in-principle.

Read also: the Attack against the opposition leader shakes Turkey

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