The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Budget: Turkey’s mysterious saviour

Ankara ought to reveal the source of a $15 billion windfall in its budget.

The Turkish government needs to give more details on why there has been such a big increase in its budget’s net errors and omissions. Inflows from this margin have reached some $15 billion over the past year. Various explanations have been offered; none is satisfactory. What is clear is that the money has saved the currency from a more severe decline and helped delay an IMF deal.

One explanation is that a tax amnesty has been the cause of the inflows but the government has not given sufficiently precise details of the amnesty’s success. Barclays said in September that the higher errors and omissions in the budget could be driven by repatriation of collateral from abroad as Turkish residents have tried to retain good loan conditions through the recession. However, some say both of these types of capital inflow should go through the official banking system, and are therefore inappropriate for the errors and omissions margin.

Euromoney has heard speculation that the inflows might be attributable to an increase in US spending in northern Iraq during elections in Kurdistan (the border between Turkey and Iraq is porous). Even scarier answers have been given. Three Iranian opposition politicians have written to the IMF saying that the money was Iranian and should be returned.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree