Search

 

Cablegate: Turkish Markets Cob March 19: Limited Further

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 001780

SIPDIS


SENSITIVE


STATE FOR E, P, EB/IFD AND EUR/SE
TREASURY FOR OASIA - MILLS AND LEICHTER
NSC FOR QUANRUD AND BRYZA


E.O. 12958: N/A
TAGS: EFIN ECON PREL TU
SUBJECT: TURKISH MARKETS COB MARCH 19: LIMITED FURTHER
DECLINE; EMBASSY AND GOT STATEMENTS

1. (U) After falling significantly in the morning, Turkish
markets declined only slightly in the afternoon session, as
investors struggled to figure out whether some kind of U.S.
assistance package might still be possible. At market
closing, the lira had weakened to TL 1,695,776/dollar, while
the yield on the benchmark t-bill had risen to 66.05 percent.
The stock market fell 6.1 percent for the day.


2. (SBU) At the GOT's request, Embassy released a press
release in mid-afternoon (using text of Washington-approved
press guidance), which stated:


"Turkey has made impressive progress over the past two years
in stabilizing and reforming its economy, as evidenced by the
strong economic recovery. The policy framework makes
Turkey's economy more resilient and more likely to achieve
sustained growth. We have confidence in the Turkish
government's commitment to strong economic policies, and have
every expectation they will continue them, working with the
IMF, which we welcome. This program, if fully implemented,
will lead to further strengthening of the Turkish economy.
The U.S. government has supported Turkey's IMF and World Bank
programs and will continue to do so as long as Turkey
continues to implement strong economic policies."


3. (U) The Embassy distributed the press release just as
Prime Minister Erdogan was announcing that he expected such a
statement by the end of the day. A few minutes earlier,
State Minister Babacanent had announced that: "There is
always agreement that the United States will give strong
support to Turkey. Apart from that, there is nothing and it
is not possible to say anything more now."


4. (U) The Embassy press release has been running as the top
story in the local press over the past few hours, with some
TV channels welcoming it as a statement of support and others
expressing disappointment because it indicated U.S. support
would be verbal only.


5. (SBU) Bender Securities' Murat Gulken told us tonight
that markets had not reacted significantly to these public
indications that there would be no U.S. package because "the
fog (i.e., confusion) was so thick, it will take more than an
hour to clear." He predicted further market declines
Thursday as the absence of a package sinks in.
PEARSON

© Scoop Media

 
 
 
World Headlines

 


Tonga Eruption: At Least 3 Dead, Amid Severe Destruction
At least three people have died in Tonga following the massive volcanic eruption and subsequent tsunami wave that hit over the weekend. Homes and other buildings across the archipelago have suffered major damage... More>>

Save The Children: Tonga Volcano Ash And Smoke Cause Concern For Air And Water Safety
Families in Tonga are at risk of exposure to unsafe air and water due to ash and smoke from the Hunga Tonga-Hunga Ha’apai volcano that erupted on Saturday, reports Save the Children...
More>>



Sudan: 15 Attacks On Health Facilities And Workers In Two Months

With the crisis escalating in Sudan, there have been 15 reports of attacks on healthcare workers and health facilities since last November, the World Health Organization (WHO) said on Wednesday... More>>


Ethiopia: UN Chief Lauds ‘Demonstrable Effort To Make Peace’

The UN Secretary-General on Wednesday said he was “delighted” to learn that “a demonstrable effort to make peace” in Ethiopia is finally underway, according to information relayed to him by the African Union High Representative for the Horn of Africa... More>>


Tigray: Agencies Suspend Aid As ‘Scores’ Are Killed Due To Airstrikes
Recent airstrikes on camps for internally displaced persons and refugees in Tigray, northern Ethiopia, have reportedly killed scores of civilians, including children, and left many more injured... More>>


UN News: For 25th Year In A Row, Greenland Ice Sheet Shrinks

2021 marked the 25th year in a row in which the key Greenland ice sheet lost more mass during the melting season, than it gained during the winter, according to a new UN-endorsed report issued on Friday... More>>