(Daily Sabah, Istanbul, 4 February 2019) Turkey, the top contributor for Iraq’s reconstruction with a $5 billion loan, has launched a coordination process to allocate the funds pledged for rebuilding Iraq. During the Kuwait International Conference for the Reconstruction of Iraq, the host country pledged $1 billion in loans and $1 billion in direct investments. Saudi Arabia said it would allocate $1 billion for investment projects in Iraq and $500 million to support Iraqi exports. Qatar said it would allocate $1 billion in loans and investments, while the United Arab Emirates pledged $500 million in investment. The European Union and Australia each promised $450 million and $100 million, respectively. While the U.S. – who invaded Iraq in 2003 – said it could provide more than $3 billion to help American firms invest in the war-torn country. Britain had said it would grant Iraq export credit of up to $1 billion per year for a decade. Iraqi government published a list of 157 projects, for which it sought private investments during the conference last year.
Turkey
Philippines edges towards procurement of Turkish combat helicoper
(Janes Defence News, London, 29 November 2018) The Philippines Department of National Defense (DND) has edged closer to a decision to procure the Turkish Aerospace Industries (TAI) T129 ATAK multirole combat helicopter to meet a long-standing requirement in the Philippine Air Force (PAF). The acquisition is expected to be facilitated through a government-to-government deal between the Philippines and Turkey, possibly involving credit provided by Turk Eximbank, Turkey’s official export credit agency.
Danish ECA freezes new guarantees to Turkey over lira crisis
(Global Trade Review, London, 15 August 2018) The Danish export credit agency EKF has frozen all new guarantees to Turkey, as concerns about the country’s economic health continue to mount. The Turkish lira has lost more than 45% of its value this year and continued its plunge this week amid a growing geopolitical storm between Turkey and the US.
Ilisu Dam: Dutch NCP concludes first-ever OECD Guidelines case on cultural rights
(OECD Watch, Amsterdam, 20 August 2018) NCP finds company failed to do due diligence and breached the Guidelines at Turkey’s Ilisu mega-dam. On 20 August 2018, the Dutch NCP released its final statement on the case of FIVAS et al v. Bresser, the first OECD Guidelines case filed on the subject of cultural rights as human rights. The statement determines Bresser “has not fully met the expectations and satisfied the due diligence criteria of the OECD Guidelines”. In July 2017, Fivas helped Turkish communities file a complaint with the Dutch NCP against Bresser, an SME that performs foundation relocation projects. The Ilisu Dam was the first ever project to have export credit guarantees from European governments withdrawn after the guarantees had already been agreed. ECA Watch members campaigned hard to make this happen.
ECAs in international politics – US and Germany vs Turkey
(ECA Watch, Ottawa, 28 August 2018) When President Trump agreed to press Israel to release a Turkish prisoner in exchange for Turkey’s release of an American Christian pastor, Israel complied but Turkey didn’t, resulting in a crippling increase in US tarifs on Turkey, including threats of possible export credit sanctions. In a similar case in July 2018, a German journalist arrested in Turkey was released when Germany, Turkey’s biggest trading partner, lifted export credit guarantee sanctions implemented a year earlier to protest the arrests and the ongoing Turkish state of emergency (OHAL). When faced with the prospect of losing export credits and a project to update Turkey’s German-made Leopard tanks, Erdoğan changed course and freed Die Welt correspondent DenizYücel without a trial. Turkey had originally asked the US release a Turkish banker convicted of helping Iran avoid US sanctions as well as to waive U.S. government fines totaling billions of dollars against Turkey’s state owned Halkbank over violations of US sanctions on Iran.
Turkey Halts Filling Tigris Dam After Iraq Complains of Water Shortages
(Reuters, Ankara/Baghdad, 7 June 2018) Turkey has temporarily stopped filling a huge dam on the Tigris River after complaints from neighboring Iraq, which is suffering water shortages, officials said on Thursday. Turkey’s ambassador to Baghdad and Iraq’s water minister also said that the two countries had agreed that when Ankara resumes filling the Ilisu dam in July it will still allow sufficient water to flow into Iraq. The dam, more than 20 years in the making, will generate electricity for a large area of southeast Turkey. But it has been heavily criticized over its impact on the environment and on the tens of thousands of villagers who will be displaced. Its waters will also submerge a 12,000-year-old town.
Financial Times: President Erdoğan responds to pressure
(Financial Times, London, 28 April 2018) President Recep Tayyip Erdogan has brought forward by a year and a half elections he intends will crown his quest for one-man rule in Turkey. One reason for the snap early election is that Turkey’s overheating economy is vulnerable. The president needs to provide jobs and services to his base. Despite his xenophobic tub-thumping and absolute intolerance of dissent, Mr Erdogan does respond to pressure and has released some journalists. The German government, although courting Ankara’s help in holding back the flood of Syrian refugees, lost patience with what it saw as hostage-taking. It ordered a travel advisory steering German tourists away from Turkey, a review of export credit guarantees for German companies trading with Turkey, and a freeze on defence contracts.
Hermes as a factor in German Turkish relations?
(Handelsblatt, Berlin, 7 March 201) Turkey and Germany recently agreed to try to “normalize” their fraught relationship. Turkey had adopted hostage-taking as an instrument of foreign policy, with Germany being a target. Germany’s response was to reconsider economic aid and export credit guarantees, to advise German tourists against travel to Turkey, and to put weapons deliveries to Turkey on hold. Between 2006 and 2011 Germany had delivered 354 Leopard 2 tanks to Turkey… Nevertheless, there is every sign that Germany is intent on going back to business as usual as soon as possible. One German-Turkish joint venture, for instance, is helping Turkey to construct its own battle tank, the Altay. The German partner, Rheinmetall, will produce the first 100-200 tanks of the 1,000 planned.
Turkish Bridge Attracts $2.8 Billion From Banks & KEXIM
(Bloomberg, London, 1 March 2018) A consortium of South Korean and Turkish construction firms are raising 2.3 billion euros ($2.8 b) from a group of about 20 banks and South Korea’s export credit agency to build a 3.1 billion euro suspension bridge and toll roads in western Turkey.
Turkish, French, Italian firms awarded missile system development project
(Daily Sabah, Istanbul, 5 January 201) President Erdoğan’s first visit abroad in 2018 was marked by a groundbreaking defense agreement that includes the joint development of missile systems by Turkish, French and Italian firms, among other commercial and economic deals. The Export Credit Bank of Turkey (Türk Eximbank) and Bpifrance Assurance Export also signed a comprehensive business cooperation agreement in France.
