US State Dept Praises Exploratory Talks; Erdogan Calls for Reduced Food Prices

LOCAL NEWS

• Not a huge amount of info out of the Greece-Turkey exploratory talks yesterday, but received praise from the US state Dept and resulted in a second round to be held in Athens.
  • Talks in Istanbul lasted 3hrs and the agenda was kept from the public - Ahval.
  • As expected the early talks held little substance, but the mere fact that talks didn't fall through on the first attempt can be construed as moderately positive.
• Erdogan orders a decrease in food prices to help reduce food inflation estimated to have ticked up 20.6% in 2020.
  • The reduction will target staples, such as oil, legumes, vegetables and fruit. Erdogan: "prices will not stay as high as they are now".
  • Also calls on Turkish banks to provide low interest loans to citizens, business owners and companies - Ahval
• IMF expects 6% growth for 2021, inflation to fall modestly by end-2021 and current acc deficit to slip to 3.5% of GDP as a result of lower gold imports and recovery in tourism.
  • Notes low FX reserves & high external funding needs as key tail risks, alongside persistently above-target inflation - Anadolu Agency
• Erdogan to speak at ceremony 1030GMT, then chairs AKP meeting at 1200GMT