Turkey Is Now Suffering From Hyper-Inflation, According to Spanish Bank, BBVA | naked capitalism

The accounting rules apply retroactively from Jan 1 of the year in question. The impact on BBVA’s first quarter results will be reflected in the bank’s second quarter income statement. The official inflation rate in Turkey is currently above 70% and BBVA’s base-case scenario is that it will not fall below 60% at any point this year.

This is why BBVA has decided to apply hyperinflation accounting, which will wipe out €324 million from the bank’s P&L statement for the first quarter. Instead of providing €249 million in profits, BBVA Garanti will have generated €75 million in losses. Looking to the rest of the year, BBVA expects Garanti’s earnings in Turkey to be non-material to its overall performance, in light of the nation’s expected inflation. Despite taking a huge chunk out of BBVA’s profits, the adoption of IAS 29 does have a silver lining: it increases the bank’s Tier 1 capital ratio by 19bp to 12.89% in Q1 and raises its book value by €254 million.

Egypt, Greece, Cyprus sign power linkage agreement in Athens – Ahram Online

The ninth trilateral summit, focusing on energy and boosting trilateral cooperation, is part of a cooperation mechanism launched in 2014 between the three countries. Egypt on Saturday signed an accord with Cyprus on linkage between the two countries’ electricity transmission networks. Two days earlier, Egypt also signed with Greece an agreement on an undersea cable …

Egypt, Greece, Cyprus sign power linkage agreement in Athens – Ahram Online Read More »

Von der Leyen: Turkey ‘further away’ from EU |

Turkey is now further away from the EU compared to what was happening a quarter of a century ago, according to European Commission President Ursula von der Leyen, in an interview given to a small number of European newspapers, including Kathimerini.

Commenting on the choice by Turkish President Recep Tayyip Erdogan not to apply European sanctions against Russia, von der Leyen noted that alignment is important in the accession process, adding that Ankara’s reluctance shows a lot about its willingness to join the European Union.

Building in Africa: Turkey’s “Third Way” in China’s Shadow | Middle East Institute

Government patronage has been a crucial factor in aiding the internationalization of Turkish construction service corporations.[23] Construction firms, especially those aligned closely with the AK Party, have been among the main beneficiaries of easy access to credit in the international market, tax incentives and exemptions, and relaxed public procurement practices.[24] Erdoğan has personally presided over the building and functioning of this patronage system, actively directing investment in the housing, energy, and infrastructure sectors across Turkey. The key role that the state has played — with Erdoğan at the helm — in favoring the construction sector by rewarding companies at home has been complemented by efforts to promote overseas construction within the context of Turkey’s assertive and expansive foreign policy.

China & 3 EU nations still helping finance Putin’s Ukraine war. Finnish study explains how – ThePrint

While Russia has become India’s “second-biggest” oil source since the start of the war in Ukraine, following its $25 per barrel discount to India and supply chain disruptions since the war, data collected by the Finnish think tank, the Centre for Research on Energy and Clean Air (CREA), also shows that India has been Russia’s eighth largest importer of fossil fuels, at 3.4 billion euros worth of imports since the beginning of the war.

Meanwhile, China and Germany rank as Russia’s primary importers of fossil fuels, at 12.6 billion and 12.1 billion euros, respectively, according to the CREA data. Italy and Netherlands come next, with 7.8 billion euros worth of imports each, with Turkey not too far behind at 6.7 billion. As a whole, 61 per cent of Russia’s fossil fuel exports between 24 February and 3 June went to the European Union, the CREA report added.

Greece, Japan, and Maritime Disputes – The Diplomat

The timing of the event was not random. Greece’s relationship with Turkey is deteriorating and tensions are escalating dangerously due to their maritime disputes in the Aegean Sea and the eastern Mediterranean Sea. The dispute is complicated, and perceptions from each side are different. According to Turkey, for instance, everything starts back in 1923 and the Treaty of Lausanne, the main treaty between the two countries concerning the border delimitation and demarcation, including of the Aegean Sea. But the main issue in the last decades is the potential undersea resources of the maritime area and control of the waters and seabed.

Turkey on the verge of total bankruptcy – ex-economy minister Babacan | Ahval

“What is default for Turkey, what is bankruptcy? It means that the Republic of Turkey cannot pay for the natural gas and oil it imports. Bankruptcy means that basic needs such as gas and diesel cannot be met even with money. You have money, you can’t get more than half a gas tank, or you wait in a queue for 3 hours. That is bankruptcy,” Babacan said.

“Bankruptcy means widespread and long-lasting power cuts throughout the country. Imagine that electricity is out for six hours, 10 hours per day. That’s the danger. They don’t know. Bankruptcy means total economic and financial collapse. Bankruptcy means chaos.”