Uncategorized

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.

Turkish-European-Israeli gas project in Iraqi Kurdistan was target of Iran missiles | The Arab Weekly

Sources say the gas export plan could threaten Iran’s place as a major supplier of gas to Iraq and Turkey. A nascent plan for Iraq’s Kurdistan region to supply gas to Turkey and Europe, with Israeli help, is part of what angered Iran into striking the Kurdish capital Erbil with ballistic missiles this month, Iraqi …

Turkish-European-Israeli gas project in Iraqi Kurdistan was target of Iran missiles | The Arab Weekly Read More »

Turkish State Energy Giants Set for Rejig Ahead of Possible Sale – Bloomberg

Turkey is preparing to reorganize some of its largest state companies ahead of possible stake sales or public offerings, according to people with knowledge of the plan. President Recep Tayyip Erdogan’s government is planning to focus primarily on energy companies including state gas importer and pipeline operator Botas, the people said, asking not to be identified …

Turkish State Energy Giants Set for Rejig Ahead of Possible Sale – Bloomberg Read More »