Turkey Country Report Sep21 - September, 2021

September 2, 2021

In the first year of a new decade, it looks like we have a new phase on our hands. With its withdrawal, the US left a nuclear device in Afghanistan that will explode again and again in the middle of Central and South Asia. There is chaos in Afghanistan. Islamic State bombed the Kabul Airport and killed US soldiers during evacuations.

Amid ongoing global (virus, Afghanistan, US-China Cold War, economic, climate, and so on) crisis, natural disasters including wildfires and deadly flooding, brutal massacres, real hunger impacting about 30mn people, pogroms against immigrants, tussling among the gangs of the Erdogan regime are just some examples of what is now wretched day to day life in Turkey.

Some other country would have already entirely exploded a million times over if it had faced one percent of what has been happening in Turkey. We have reached a situation that looks like a laboratory experiment to test what more can be done to make Turkey itself explode.

From July 28 to August 12, Turkey’s Mediterranean and Aegean coast literally burnt. Biggest loser, in terms of economy, is the already ailing tourism industry.

Coronavirus (COVID-19) pandemic had a new peak.

Turkey’s record-breaking currency lira left the August liquidity dry behind without creating any fresh records. The next danger stop is November prior to the beginning of the new year rally in December.

E-commerce platform Trendyol, controlled by China’s Alibaba, raised $1.5bn at a $16.5bn valuation, making it Turkey’s first “decacorn” (tech start-up that reaches a valuation of higher than $10bn).

Turkish games maker Rollic, a subsidiary of Zynga (ZNGA/Nasdaq), surpassed 1bn downloads.

Turkish ready-wear retailer LC Waikiki entered South America.

Coca Cola Icecek (CCOLA) bought Coca-Cola Bottlers Uzbekistan.

Turkey faced electricity shortages since hydro plants are hit by drought and natural gas plants are off due to low electricity prices.

Chinese investors are “stalling the acquisition of a stake in the 3rd Bosphorus Bridge, which would also include a refinancing deal for debts.”

Turks are left with only old second-hand car choices due to lira depreciation and tax hikes. Erdogan cut tax on some vehicles after sales were hit in July.

Karsan (KARSN) will produce Megane sedan model vehicles for Oyak Renault. Karsan is part of a scandal in Turkey.

Turkey cancelled a barley import tender and did not accept all bids at wheat and barley import tenders due to jump in prices. Since June, Turkey has been holding consecutive tenders to import wheat and barley.

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