Turkey’s $766bn economy began contracting last year after the currency crisis was sparked by a convergence of factors including a diplomatic spat with the US, a build-up of cheap foreign debt, and worries over the central bank’s independence from Recep Tayyip Erdogan.
Turkey’s Prime Minister Recep Tayyip Erdogan, has declared that the İş Bank, a Turkish bank mostly owned by Recep himself, “will be the property of the state treasury, God will be willing.” In other words, he declared that the money of the people will be placed into his wallet.
As the financial sector declines due to poor debt accumulation and the onset of a recession, Receps power struggle is known to play a substantial role as Isbank shares fell almost 7%, during the municipal elections in March, after the launch of Receps electoral campaign.
Recep, who does not admit that Turkeys recession is due to his own greed to expand power at the expense of the financial system, undertook more control over the monetary policy that helped trigger the crisis in the Turkish lira before last year’s presidential election.
In his recent statements, Erdogan said that not only did he win the support of his own group, but also that his parliamentary ally, the Nationalist Movement Party, should vote to carry out the steps and take over the bank.
While İşbank’s net income was almost 4.6 billion pounds ($ 885 million), profit fell by 19 percent in the third quarter compared to the second quarter of 2018.
