Freedom Forever

Indeed, Fortune is changeable: whereas in Ankara in the morning they celebrated the discovery of a natural gas field in the Black Sea with reserves of 320 billion cubic meters, then in the evening Fitch transferred Turkey's credit rating from stable to negative. However, the reaction of the adherents of the authorities was traditional: "They cannot digest our economic independence."

In fact, Ankara has ignored their opinion since the fall of 2018, after President Erdogan himself several times responded to international credit rating agencies. Although, as you know, wherever Turkish investors apply for loans, lenders, first of all, will pay attention to the reports and assessments of these agencies.

Apparently, in recent years, Erdogan's government has become more interested in the flow of hot money into the country than the fate of macroeconomic indicators, banking and business in the country and the adoption of adequate measures in response to the pessimistic assessments of the Turkish economy by rating structures. As for the exchange rate, it was not possible not only to lower it, but to stabilize it even for some time after sharp fluctuations.

As foreign companies left the Istanbul Stock Exchange, the Turkish lira was increasingly depreciating. Due to the annual cost of energy imports of $ 50 billion, the current deficit is constantly hanging over the economy like the sword of Damocles, and treasury guarantees issued to foreign consortia in foreign currency for the implementation of such infrastructure projects as the construction of bridges, roads, etc. still remains the main factor of pressure on the exchange rate. Therefore, it is not at all surprising that this time the New York Times wrote about the exchange rate (08/30/2020), noting that exchange rate risks are increasing in the Turkish economy, in the growth of which the pandemic has played a role in recent months.

Thus, an article by Jack Ewing draws attention to the statement of the CEO of Arçelik, which is controlled by the largest Turkish financial and industrial conglomerate Koç Holding, that "they were not affected by the pressure on the exchange rate in the market."

The general director of the holding, Hakan Bulgurlu, stressed that his company, mainly through its "industrial enterprises located in Pakistan, Bangladesh, India and South Africa", meets its needs for foreign currency. However, this is not an irony of fate in relation to the authorities, but the reverse influence on them of investments, the owners of which are changing or there are attempts to change them through political pressure, encouragement and support.

Like many peer companies of the Republic of Turkey, Koç Holding, Turkey's largest group of companies with which the Justice and Development Party (AKP) founded in 2001, did not get along at that time, after the AKP came to power, it received its share of negativity from government pressure.

During the AKP rule, $ 136 billion was awarded to the five closest companies in a $ 150 billion tender through frequent legislative changes, according to a World Bank report published two years ago. Although before the AKP came to power, none of them could compare with the large companies of the 70s and 80s.

Koç Holding, which for many years has not won a single tender in the military, oil, infrastructure and other specific large-scale industries, after its last investment in Turkey in 2008, seems to have reoriented itself to foreign countries. And its honorary president Rahmi Koch, who is now 89 years old, assessing the current situation and bearing in mind plans for the future, said: “Over the past 10 years, the authorities have spent all the money on far from the most important projects, and we will not invest a dime in Turkey. ".

Another reason for the behind-the-scenes litigation and pressure on the AKP government and Koç Holding was that, contrary to the demand of then Prime Minister and current President Erdogan, the holding did not transfer its $ 40 billion fund in Italy to Turkey.

Of course, if you transfer the Rahmi Koç Foundation to Turkey and lend it to the authorities, it would win new tenders and avoid disgrace. However, the current situation shows that the fact that Koç Holding, known for its loyalty to its principles, did not do this, benefited this group of companies.

There is no doubt that this 100-year-old (if you count the time since the opening of a grocery store by the founder of the holding Vehbi Koç in 1920 in Ankara) group of companies, not adapting to the political situation, carefully weighed its strategic and tactical steps, it is quite natural ...

That is why today, when Turkey is again faced with the problem of the exchange rate, the country's oldest holding company does not have such a problem.

By depriving the economy of freedom, by establishing control over it and putting pressure on it, the authorities, first of all, harm themselves.

This applies to the press too...