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Greece Exploratory Talks Set for 16 March; US Favours Cyprus Bizonal Federation

TURKEY

LOCAL NEWS

  • Second round of exploratory talks with Greece to resume on 16 March in Athens. Arrives just ahead of the EU Summit (March 25-26)
    • Turkey will likely want to be submissive and show an openness for dialogue in an attempt to soften the EU's possible sanctions reaction and date for reassessment.
    • Once this hurdle is cleared, we may see Erdogan return to his assertive posturing in the region regarding the blue homeland and East Med/Aegean drilling
  • US aligns itself with Greece in supporting a bizonal federation in Cyprus vs Turkey's calls for a two-state solution.
    • Blinken said the US will support and engage with the UN on the matter, which is bad news for Turkey's aspirations and likely cause more friction with the US & Greece as chances of a two-state solution diminish.
    • Blinken praised a significant diminishing of East Med tensions, however.
  • Turkey Wealth Fund seeking to refinance $1.2bn syndicated loan due in 4 days (95% guaranteed by the state).
    • Comes after the TWF abandoned a $2bn bond sale in Oct-20, citing unfavourable market conditions
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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