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Simsek Could Demand Freedom From Interference in Any Economy Role

TURKEY
  • There are growing expectations and speculation in local press that market-friendly Mehmet Simsek will be appointed to Erdogan’s economic team – with some writing that Simsek has reportedly demanded that his team will be “free from interference” for at least two years.
  • GDP data for Q1 came in ahead of expectations on a Y/Y basis, rising to 4.0% vs. Exp. 3.5%. Q/Q growth was slightly softer, however, at 0.3% vs. Exp. 0.5%.
  • Ekonomi write that banks are struggling to effectively price longer-term commercial loans – leaving commercial credit supply in distress. This leaves commercials needing loans being forced to opt for very short-term products, with banks halting supply at the longer-end.
  • Dunya see the CBRT putting a brake on FX-protected TRY deposit accounts, citing sources in saying that the CBRT has made contact with bank officials, and will prohibit payouts given to the KKM accounts. The piece cites their total size as now in excess of $120bln.
  • Erdogan is to chair a cabinet meeting later today at 1530 local time (1330BST) – his last cabinet meeting before the formation of a new government.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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