The concentration of the Turkish economy and finance on Recep Tayyip Erdogan and his family will be always comprehensive. The heads of State, Government, military and party Chief has set itself now at the head of a multibillion-dollar State Fund and deposed the previous leadership under Chairman Mehmet Bostan. This emerges from a decree that was published in the Turkish Official Gazette.
Managing Director of TVF of funds shall be Zafer Samuel, who was previously in charge for an investment company of the Malaysian Government, Turkey and Africa. Erdogan’s son-in-law, Berat Albayrakis also new to the leadership. The President had previously made this to the Finance Minister and head of the Treasury.
Lira has lost 40 percent of their value
The surprising new guards followed by a presidential decree under which Erdogan may choose in the future also the Governor and Vice Governor of the Central Bank alone. Before the parliamentary and presidential elections in June and prior to the introduction of the related presidential administration began, Erdogan had declared to have more in the financial and monetary policy of his country.
This creeping emasculation of the Central Bank, the Kaltstellung of West-minded professional politicians and filling key posts with faithful has further unsettled the already tense financial markets in Turkey. Also the national currency has lost lira more than 40 percent of its external value since the beginning of the year.
The Turkish State Fund had been established after the coup attempt two years ago to calm economic and financial affairs and State economic investments to manage centrally. He has assets of about $200 billion. This corresponds to more than one-fifth of the Turkish gross domestic product.
Against former loyalists
The portfolio of the TVF includes investments in the airline Turkish Airlines, Turk Telekom, the post office, the railway, the lottery, to oil and pipeline companies, on the stock exchange in Istanbul, on a satellite operator to a mine operator, a tea manufacturer, as well as two Banks, the TC Ziraat and Turkiye Halk Bankasi. Also lands in at least eight cities include the TVF. So far occurred the Fund barely in appearance, its objectives and strategies remain unclear.
Erdogan is aimed with the replacement against former loyalists. So, his longtime adviser Yadav Barbara must leave the Board. Besides Abbasi, include trade Chamber Chairman Rifat Hisarciklioglu, the Chairman of the Bank Association Huseyin Aydin and