May 28 2019

No new investments on the horizon in Turkey due to lira meltdown - DW Turkish

New investment in 2019 is impossible for Turkish industrial firms, which are having a hard time paying off foreign debts following the devaluation of lira against the dollar, economist Mustafa Sönmez told Deutsche Welle Türkçeon Tuesday.

"No matter what happens, it will not be possible for the industrialists to make new investments in 2019," DW Türkçe quoted Sönmez as saying.

Hundreds of billions of dollars of corporate debt, one of the major causes of the economic recession in Turkey's economy, counterbalanced the profits of the country's largest companies in 2018, said the news site, referring to a report by Istanbul Chamber of Industry (ISO).

According to the findings of the report, Turkey's giant companies used almost 90 percent of their profit last year to repay their foreign debt.

Turkey has been facing an economic crisis, as lira dived 28 percent in 2018 after the United States imposed sanctions on two Turkish ministers and then doubled tariffs on steel products in response to Turkey’s internment of U.S. pastor Andrew Brunson and other U.S. citizens.

The majority of Turkey's foreign debt, exceeding $200 billion, is owed by the largest 500 companies of the country, according to Sönmez. And despite the severe financial situation, Turkish industrialists are yet to raise their voices on the issue, he added.