TR Economy & Updates

[the]

UAE buys 50% stake in Kalyon holdings' subsidary Kalyon enerji
Who will operate the subsidary company now? With Kalyon holding having 50% and UAE having 50%, who will operate the company?

Abu Dhabi's IHC takes $490 mln stake in Turkey's Kalyon

Abu Dhabi's International Holding Co on Thursday said it had acquired a 50% stake in Turkey's Kalyon Enerji for 1.8 billion dirham ($490 million) through one of its subsidiaries.

www.reuters.com

You know government officials are involved when one of Turkey's richest companies (Kalyon Holding) is forced to sell half of its subsidiary.

 

[Lool]

You know government officials are involved when one of Turkey's richest companies (Kalyon Holding) is forced to sell half of its subsidiary.

Probably true; though I just wanna say that at the end of the day, Kalyon isnt a company operated by the govt or by ppl's tax money; it is purely private AFAIK


But again, who will operate the subsidiary company?

Kalyon holding is a private company with deep ties to the govt and that is why they always have a piece of any construction project initiated by the govt; thus they have a monopoly in a sense

That is why I wanna ask who will operate it? Will it remain in kalyon's hands or will it be a joint ownership and why not 49%? I cant find the exact details of the transaction

 

[Lool]

@the
I just found out the statement about the deal from Kalyon holding Chairman
Are they getting funds to initiate investments in the UAE?

http://tradearabia.com/touch/article/OGN/399465

Strategic tie-up
Underlining that this strategic cooperation is of great importance not only for the two countries but also on a regional scale, Cemal Kalyoncu, Kalyon Holding Chairman of the Board said: “The steps we have taken in the energy sector and the investments we have made, have attracted the attention of foreign investors so far. This strategic cooperation is of historical importance in terms of realising both potential projects in Turkey, and new markets and business fields in geographies, that we plan to enter in the world, it will make a great contribution to our geography as well as our country. We have always been committed to enriching human life by contributing to social development without losing environmental awareness. With climate change being the defining challenge of our time, we must accelerate our efforts to transform our planet into a sustainable green economy.”

 

[Ravenman]

Whas it a state-firm? If it wasnt, than the state could not sell it.

And why 50% and not 49% ? What a dickheads.

 

[Lool]

Borsa güne rekorla başladı

Borsa İstanbul'da BIST 100 endeksi, güne yüzde 1,09 artışla, rekor seviye olan 2.860,53 puandan başladı.

www.trthaber.com

 

[Nurhak40]

If we get 20 billion from SA, than we will always do what SA asks from us.

Thats how these things works.

Everything will change and turns the other way when we invade Greece. The clock is ticking.

How can we invade Greece if there are US bases?

 

[Tornadoss]

We won't invade Greece ffs.

 

[the]

Probably true; though I just wanna say that at the end of the day, Kalyon isnt a company operated by the govt or by ppl's tax money; it is purely private AFAIK


But again, who will operate the subsidiary company?

Kalyon holding is a private company with deep ties to the govt and that is why they always have a piece of any construction project initiated by the govt; thus they have a monopoly in a sense

That is why I wanna ask who will operate it? Will it remain in kalyon's hands or will it be a joint ownership and why not 49%? I cant find the exact details of the transaction

@the
I just found out the statement about the deal from Kalyon holding Chairman
Are they getting funds to initiate investments in the UAE?

http://tradearabia.com/touch/article/OGN/399465

Strategic tie-up
Underlining that this strategic cooperation is of great importance not only for the two countries but also on a regional scale, Cemal Kalyoncu, Kalyon Holding Chairman of the Board said: “The steps we have taken in the energy sector and the investments we have made, have attracted the attention of foreign investors so far. This strategic cooperation is of historical importance in terms of realising both potential projects in Turkey, and new markets and business fields in geographies, that we plan to enter in the world, it will make a great contribution to our geography as well as our country. We have always been committed to enriching human life by contributing to social development without losing environmental awareness. With climate change being the defining challenge of our time, we must accelerate our efforts to transform our planet into a sustainable green economy.”

It will likely continue to operate as it currently is (under Kalyon), however UAE will have 50% ownership of the company and therefore 50% of profits. Basically, like the situation with BMC.

As for the investment, you said it yourself. Why would a significant consortium with links to the government even need cash for investment (when it could be subsidised by the state). The sale, especially at 50% rather than 49%, was purely political and likely tied to some sort of deal with the UAE providing additional cash deposits for the Treasury.

---

Lets just hope that the next government reverses this decision, on top of re-nationalising BMC.

 

[Lool]

Iam really interested in how they are going to manage the lira-ruble exchange mechanism. I hope that it is beneficial to Turkey as they claim

https://twitter.com/i/web/status/1557747417147219974

 

[Lool]

It will likely continue to operate as it currently is (under Kalyon), however UAE will have 50% ownership of the company and therefore 50% of profits. Basically, like the situation with BMC.

As for the investment, you said it yourself. Why would a significant consortium with links to the government even need cash for investment (when it could be subsidised by the state). The sale, especially at 50% rather than 49%, was purely political and likely tied to some sort of deal with the UAE providing additional cash deposits for the Treasury.

---

Lets just hope that the next government reverses this decision, on top of re-nationalising BMC.

Honestly, it will depend on who will rule after Erdogan
If Mansur Yavas or Umit Ozdag, I will say lets give them a chance! But Mansur Yavas doesnt want to be a president and Umit Ozdag doesnt have the necessary support to win after 9 months only

If Imamoglu or Kilicdaroglu were to win, I expect Turkey to be fqing destroyed! Hell, I remember deputy CHP once visited Togg factory earlier this year and said that this project is bad since Turkey already has western car companies operating in it, lool! Those who cant even dream cant even improve as there will be no vision to stride forward to

 

[Baryshx]

Iam really interested in how they are going to manage the lira-ruble exchange mechanism. I hope that it is beneficial to Turkey as they claim

https://twitter.com/i/web/status/1557747417147219974

I have not seen this government do anything economically beneficial to Türkiye in 20 years.

 

[MarcusZidanta]

For those who don't understand what Erdogan is trying to do with the economy:

1. He's trying to fix the current account deficit, current account deficit means more dollars leaving the country than are entering. Because there is not enough dollars inside the country, the value goes up. TL loses value. When TL loses value you get high inflation. WE HAVE THAT.

2. Whoever is advising Erdogan he's become obsessed with the current account deficit.

3. The reason why Erdogan doesn't want high interest rates is because he won't be able to loan and finance exporting companies to reduce the current account deficit. Secondly, high interest rates bring in whats called "hot money". Hot money is short term speculative doviz that is only here because of high interest rates. When interest rates go back down, all this foreign currency will leave, causing TL to lose value which means more inflation.

IT'S A CIRCLE, we would be back to square 1.

The reason we have current account deficit is because we have to buy 90% of energy needs outside in DOLLARS.

The solution to this foreign direct investment into manufacturing to bring dollars into country or find energy needs domestically. Inflation needs to be reduced and fundamental reforms.

 

[GoatsMilk]

y is short term speculative doviz that is only here because of high interest rates. When interest rates go back down, all this foreign currency will leave, causing TL to lose v

These last 20 years what has he been doing? How can he rule for 20 years and leave us with such a shitty economy that gives us record failures on a weekly basis?

 

[MarcusZidanta]

These last 20 years what has he been doing? How can he rule for 20 years and leave us with such a shitty economy that gives us record failures on a weekly basis?

From 2002-2013 it was all high interest rate credit fueled growth. All hot money. When shit hit the fan the hot money ran somewhere else causing devaluation. Even during 2002-2013 TL still lost value. Only solution is Turkey getting a current account surplus. Which is easier said than done.

Countries like United Kingdom can finance its current account deficit because it has good relations with US creditors. So it borrows money to fill the gaps. Also UK is low risk so it gets really good low interest deals. Turkey pays 10x more interest than UK.

 

[GoatsMilk]

From 2002-2013 it was all high interest rate credit fueled growth. All hot money. When shit hit the fan the hot money ran somewhere else causing devaluation. Even during 2002-2013 TL still lost value. Only solution is Turkey getting a current account surplus. Which is easier said than done.

Countries like United Kingdom can finance its current account deficit because it has good relations with US creditors. So it borrows money to fill the gaps. Also UK is low risk so it gets really good low interest deals. Turkey pays 10x more interest than UK.

So what your saying the "so called" strong economy of erdogan was really no more then smoke and mirrors?

 

[Ryder]

How comparable is todays economic situation with what happened 20 years ago.

I think the 2001 economic cirsis was a big deal at the time.

 

[MarcusZidanta]

So what your saying the "so called" strong economy of erdogan was really no more then smoke and mirrors?

Basically yes, Turkey should've done these reforms in the 2001 crisis, instead they just moved along with a neoliberal economic model fueld by cheap credit thanks to interest rates.

Next government in 2023 needs to cut the relationship between imports and exports. We import raw materials and semi processed products to export finished products to other markets - so if exports rise, imports rise too.

We need to source raw materials here, and also invest heavily into nuclear energy to cut energy import bill. Then we will have a current account surplus.

 

[MarcusZidanta]

How comparable is todays economic situation with what happened 20 years ago.

I think the 2001 economic cirsis was a big deal at the time.

This is nothing yet, new government will likely be a coalition with a single president. I'll be voting for IYI.

They will have to increase interest rates to 80%-100%, then you will see economic crisis. If Erdogan does this he will guarantee losing the election, the central bank is not independent, if it was we would never have 80% inflation.

Higher interest rates mean lower business investment, high unemployment, budgetary cuts etc = AKP loses. But its needed to reduce inflation and is good for the long term health of economy.

I'm just hoping that incoming coalition government brings in the reforms so that we can put this shitshow behind us.

 

[MarcusZidanta]

I also want to say this, with the reforms that are pledged by opposition in 2023 elections. Turkey's recovery is max 24 months.

Turkey has better fundamentals than Germany or France. I'm not being one of the crazy nationalists. I'm talking about geography, demography, ideology etc. We just need good governing systems.

Turkish people have become so demoralised because of this below average president, educated people are unfortunately leaving. I can't wait for the elections.

 

[Huelague]

So what your saying the "so called" strong economy of erdogan was really no more then smoke and mirrors?

And you think only governments can solve these problems?