Addendum on Turkey's External Debt Bubble

by David P. Goldman • Jul 31, 2012 at 12:38 pm

http://www.gatestoneinstitute.org/3229/addendum-on-turkey-external-debt-bubble

Send

Comment

RSS

Turkey's short-term external debt is rising rapidly as the country runs a current account deficit equal to 9%-10% of GDP (about the same level as Greece before it blew up). Virtually all the growth in short-term debt (blue line) is in bank debt (red line).

We can see from the Bank for International Settlements data that Turkish banks are borrowing heavily on the interbank market, but we can't see who is lending to them. Turkish sources believe that the bulk of the interbank financing is coming from the Gulf (that's almost certainly true by process of elimination -- the Europeans are cutting back their interbank lending). I conclude that the Saudis and other Gulf states are keeping Turkey in business, but on a short leash.

Original Frequency

Related Topics: David P. Goldman receive the latest by email: subscribe to the free gatestone institute mailing list

Comment on this item

Change text size:

Fatah's Drive Against "Normalization"

by Khaled Abu Toameh

The Fatah activists who are threatening Palestinian teenagers for talking to Israelis and playing football with them are the same people who claim, at least in public, that they support the peace process with Israel. But how can there ever be a peace process when anyone who meets with an Israeli is immediately denounced as a traitor? It is worth noting that most of these denunciations are coming form the "moderate" Fatah, and not from Hamas.

The U.S. Role in the Sunni-Shi'ite Conflict

by Harold Rhode

America should back only pro-American forces who do not privately finance or publicly promote hatred against the U.S. It is in America's interest to rid the Muslim world of the Islamic fundamentalist forces whose goals and actions are inimical to American and Western interests; not to cozy up to them.

Growing Threats to Academic Freedom

by Edward S. Beck

Hawking's behavior is based on inaccurate, biased information. If he has insightful thoughts about resolving the Israeli-Palestinian issues, let him come and share them. Stating them at the conference is the way for them to have impact.

The Interfaith Racket: Passport to Credibility

by Douglas Murray

Because Ahmed was the first Muslim peer, most people were eager to do anything they could to cover for him, forgive him, reinstate him time and again – and even now are not able to believe the words that came from his mouth in Pakistan because they differed from the words that came from his mouth at interfaith meetings in London.

Muslims Demand Germany "Make Islam Equal to Christianity"

by Soeren Kern

Muslims attending the German Islam Conference were apparently offended by the insinuation that Islam could be radical or violent.