On the evening of July 15
July, 2016

On the evening of July 15, a faction of the Turkish Armed Forces attempted to stage a coup in various cities of Turkey. As a consequence of the failed attempt, a three-month state of emergency was declared by the President. Concerns that the current state will affect Turkey’s rising economic system are not reasonable. A series of policy measures, were taken by the Central Bank of the Republic of Turkey to encourage financial markets and to prevent the banking system from being exposed to the negative effects. Especially the fact, that the banking system in Turkey recovered quickly in the aftermath of the 2001 and 2008 crises and has proven resilient during temporary shocks such as terror attacks and geopolitical risks over the past two years makes sure that the likely short-term effects of this attempt will not be accompanied by any deterioration in major economic indicators.

Furthermore, the Turkish government’s new structural reforms in the pipeline, the low probability of early elections, and strong domestic consumption, guaranties a growing Turkish economy.