FT: Foreign investor on hold despite Turkey election promises

International financial media interest in Turkey continues ahead of the May 14 elections.

According to analysis published yesterday in Britain’s Financial Times by Adam Samson, international fund managers warned that it will be a difficult task for the Turkish economy to regain its reputation among foreign investors, no matter which party wins the election.

INVESTORS WILL WAIT

According to the analysis, while investors say change is needed in Turkey, they worry that even if the opposition wins, there will be permanent change because of the coalition that will be formed. Fund managers, on the other hand, are of the opinion that investors will not take action until there is a permanent change in Turkey.

Paul McNamara, London-based investment director of emerging markets at GAM, said: “There are a lot of variables going wrong in Turkey and it will be very difficult to put them in the right place. Investors will not rush to transfer money to Turkey,” he said.

‘A MARKET ABANDONED BY FOREIGNERS’

In the analysis, it was claimed that concerns about Turkey’s economic trajectory and measures taken to ease pressure on the lira caused investors to pull back.

East Capital senior adviser Emre Akçamak, who made assessments on the matter, said: “This is a market that foreigners have almost completely abandoned.”

Akçamak said: “All the steps taken by the opposition to repair the economy will create new bumps in the road,” adding that investors are “waiting for turning points in economic management” before deciding to act.

Akçamak said that Turkey is approaching the “breaking point” under the current policy framework, especially as the Central Bank’s foreign reserves are “almost depleted.”