ISTANBUL - Referans
Foreign companies that eye Turkey for investments are trying to clear their visors in the aftermath of recent developments that have blurred the horizon both politically and economically. Consulting firms that offer services to foreign companies are trying to shed light on many questions that may shape investment decisions. These include the results of a �possible military coup,� the possible closure of the ruling Justice and Development Party, or AKP, as well as the recent Ergenekon operation in which some prominent figures were arrested, charged with planning to topple the government. In light of all these, many foreign investors now prefer to wait for the fog to clear.
�Many companies that want to form partnerships and acquire firms, particularly in real estate and industry, have suspended their investments, and try to understand [what is going on],� said Tevfik Gür, founding partner at Gür Avukatlık Bürosu, a law office. �Everyone is waiting at least until the end of summer,� he said.
Regarding possible impacts of the closure of the AKP, Gür noted, �We express our faith in the continuation of political stability. However, this is not convincing for them, as many of them have suspended their investment decisions.�
Following the reflection of the closure case against the AKP and the Ergenekon investigation in foreign media, investors started to have more question marks about Turkey, Gür said.
Foreign investors are unable to understand the developments, but they maintain their interest in the country for the long term, said Can Deldağ, managing director at Turkey office of the Carlyle Group. �Such events do not reduce foreign interest, but may decrease prices due to increasing risk,� said Deldağ.
Funds on the search:
PricewaterhouseCoopers (PwC) Turkey Partner Hüsnü Can Dinçsoy said he faced questions from some investors on what is going on in Turkey during his presentation in London a while ago.
The closure case may create opportunities for some entrepreneurs, said Dinçsoy.
�Equities will decline if the economy gets worse. This may be deemed as a good time to buy. Particularly, foreign investment funds may be waiting for such opportunity as they are after cheap companies.�
Economic and political issues should be evaluated differently, said Roberto Luongo, manager of the Italian Trade Commission, adding that there seems to be no problem at present in terms of companies that invest in Turkey.
International investors have entered a phase of waiting for the settlement of local and global conjuncture, said Bahadır Teker, managing director of Istanbul Mortgage. It is important to see the settling down of prices, Teker said.
Foreign interest toward Turkey is in line with the global conjuncture, said Tahir Uysal, chairman of the International Investors Association, or YASED. There is significant distress in the world today, he said, adding, �Turkey does not seem to witness the impact of this distress much. The country is still at a level capable of drawing foreign investments.�
�Some investors reveal their faith in Turkey by expressing that they are accustomed to such events while some others have concerns,� he said. �We should do all we can to secure the inflow of foreign capital.�
Prime Minister Recep Tayyip Erdoğan had previously claimed the closure case against the AKP cost the nation $25 billion in foreign investment.