EBRD approves Turkey’s economic recovery plan

My FX Forum

Staff member
According to the European Bank for Reconstruction and Development (EBRD), Turkey might overcome the current economic crisis in the near future. Such an optimistic forecast was primarily due to the recently presented new economic development program. EBRD President Suma Chakrabarti has commended the proposed economic plan, noting that now “implementation will matter.”

The bank is one of the largest investors in Turkey, and its opinion reflects mood of foreign investors in general. Among the negative factors, experts emphasized issues around the justice system, about commercial courts in particular. Furthermore, Turkey's authorities were encouraged to get their relationship with the EU and the United States back on track as it would notably advance the recovery from the crisis.

“The economics get affected by the politics sometimes. So the rebalancing of the U.S. and Turkish ties in a positive direction in recent weeks is going to help strengthen the Turkish Lira. Foreign investors are also going to take a look at that,” Chakrabarti said. “Particularly I would also lay stress on the improving relations between Turkey and the EU, which is a major help, as the EU is the main trading partner for Turkey.”

Analysts suggest that the key point for Turkey at the moment is to shift from planning into action to retain investors’ confidence.