Foreigners attracted to Turkey
Güncelleme Tarihi:
Anatolian Agency
Oluşturulma Tarihi: Şubat 06, 2009 00:00
NEW YORK - Many investors are still interested in Turkey, according to Ayşe Yüksel, a partner of Chadbourne & Parke. However, they are waiting for asset prices to drop as it has become harder to find financing to cover big purchases, she says
Foreign investors are still interested in Turkey despite the ongoing global crisis, according to the Turkish partner of Chadbourne & Parke, a global law firm.
"Turkey is in a much better situation compared to the United States, Europe and the United Kingdom," said Ayşe Yüksel, who also is the head of Chadbourne's Middle East and North Africa, or MENA, and Turkey Corporate Practice Group.
Speaking to a correspondent of Anatolia News Agency at New York head office of Chadbourne, which has approximately 500 lawyers and 13 offices, including four in the United States, she said Turkey had been very active in economic terms within the last few years.
The firm’s clients are the companies, banks and funds from all around the world that are interested in Turkey, Middle East and North Africa, she said. In Turkey, particularly private capital funds that want to come from Middle East, the United States and Europe loom large, she said, adding that there are also clients that want to acquire strategic companies.
"Due to the crisis, foreign investors have declined, however, they have not lost their interest in Turkey. They are not certain of the pricing. That is why they are waiting. They expect the value of the companies to drop further," Yüksel said. Investors will orient toward company acquisitions once values drop in upcoming months, she said, "They are monitoring small scale companies and more specific sectors, due to problems they experience in finding financing for larger transactions."
Recently, foreigners have become more interested in energy, infrastructure and health industries, Yüksel said. Citing external problems as the basic reason for the decline in foreign investment in Turkey, she said banks in the United States and Europe had liquidity problems, creating problems for foreign investors in borrowing.
Economic analysts, foreign funds and investment banks predict Turkey may experience problems in the short term, for one to two years, she said, adding however, they expect a proper economic development in the medium term.
Impacts of global crisis
Regarding the impacts of the global crisis, the Chadbourne partner said Turkey’s finance sector, particularly banks and insurance companies, had strengthened due to reforms implemented following the crisis in 2000. The country’s borrowing was also less than the United States, she added.
Despite a high amount of foreign debt, companies in Turkey do not have as much debt as those in the West, she said. The fact there are less mortgage and hedge funds in Turkey is very positive for the country, she said, adding the crisis had affected Turkey’s automotive and textile exports, due to the economic situation, particularly in Europe.
On IMF deal
Turkey should sign a standby agreement with the International Monetary Fund, or IMF, as soon as possible, said Yüksel, "This will ease borrowing in Turkey as well as restoring Turkish people’s and foreign investors’ trust."
Innovations to take place in Turkey’s trade and debt laws will ease foreign direct investment in Turkey, she said, adding that Turkey is expected to draw foreign direct investment worth $8 billion this year. The figure, which stood at $2.8 billion in 2004, was around $20 billion during better times in the country’s economy and the prediction for 2010 is $11 billion, she said. "In any case, we will not drop below the 2004 figure."
"Turkey is in a much better situation compared to the United States, Europe and the United Kingdom," said Ayşe Yüksel, who also is the head of Chadbourne's Middle East and North Africa, or MENA, and Turkey Corporate Practice Group.
Speaking to a correspondent of Anatolia News Agency at New York head office of Chadbourne, which has approximately 500 lawyers and 13 offices, including four in the United States, she said Turkey had been very active in economic terms within the last few years.
The firm’s clients are the companies, banks and funds from all around the world that are interested in Turkey, Middle East and North Africa, she said. In Turkey, particularly private capital funds that want to come from Middle East, the United States and Europe loom large, she said, adding that there are also clients that want to acquire strategic companies.
"Due to the crisis, foreign investors have declined, however, they have not lost their interest in Turkey. They are not certain of the pricing. That is why they are waiting. They expect the value of the companies to drop further," Yüksel said. Investors will orient toward company acquisitions once values drop in upcoming months, she said, "They are monitoring small scale companies and more specific sectors, due to problems they experience in finding financing for larger transactions."
Recently, foreigners have become more interested in energy, infrastructure and health industries, Yüksel said. Citing external problems as the basic reason for the decline in foreign investment in Turkey, she said banks in the United States and Europe had liquidity problems, creating problems for foreign investors in borrowing.
Economic analysts, foreign funds and investment banks predict Turkey may experience problems in the short term, for one to two years, she said, adding however, they expect a proper economic development in the medium term.
Impacts of global crisis
Regarding the impacts of the global crisis, the Chadbourne partner said Turkey’s finance sector, particularly banks and insurance companies, had strengthened due to reforms implemented following the crisis in 2000. The country’s borrowing was also less than the United States, she added.
Despite a high amount of foreign debt, companies in Turkey do not have as much debt as those in the West, she said. The fact there are less mortgage and hedge funds in Turkey is very positive for the country, she said, adding the crisis had affected Turkey’s automotive and textile exports, due to the economic situation, particularly in Europe.
On IMF deal
Turkey should sign a standby agreement with the International Monetary Fund, or IMF, as soon as possible, said Yüksel, "This will ease borrowing in Turkey as well as restoring Turkish people’s and foreign investors’ trust."
Innovations to take place in Turkey’s trade and debt laws will ease foreign direct investment in Turkey, she said, adding that Turkey is expected to draw foreign direct investment worth $8 billion this year. The figure, which stood at $2.8 billion in 2004, was around $20 billion during better times in the country’s economy and the prediction for 2010 is $11 billion, she said. "In any case, we will not drop below the 2004 figure."