The effect of unacceptable resignation on borrowing

Despite claims by some journalists that new banknotes have been issued, there is no official statement. This means that the government is not inclined to print new banknotes and has not changed its position. The solution is to find new loans. There are urgent debts to be repaid this year, for which there is no choice but to take out a foreign loan.

Erdal Sağlam, an experienced economic commentator for “Cumhuriyet”, points out that in the current situation, Turkey does not have the opportunity to choose alternatives to get a loan (it does not have an option to say: “if this gives, we will receive a foreign loan”, April 14, 2020). Although it was announced that the Fed would open a $ 2.6 billion swap line for Turkey, we saw that the line was not opened on April 6 (it did not matter much). Allegedly, President Erdoğan asked President Trump for a loan, but Washington said it would not discuss any loans “until the S-400s are completely abandoned”.

Is the remedy still in the hands of the International Monetary Fund? We know that President Erdogan does not lean towards the IMF loan. Because re-entering the path separated from the IMF 7-8 years ago, will not be worthy of the glory of the AKP government.

However, the IMF itself said that talks with Turkey continue. However, even if credit negotiations with the IMF continue, at some stage, it is likely that the Washington obstacle will emerge and the loan will not be issued. And with the argument of S-400. Those S-400s, which have been delivered to the “Murted” Air Base in Ankara since June 2019, were announced by the President to be activated in April. There is no news about that yet.

At a minimum, in the last 10 months, has Turkey taken an unthinkable step on the S-400 issue, which has hurt Ankara in almost every area of Turkish-US relations and even accelerated the passage of the "Armenian genocide" project through Congress? If so, why did it take it? If these steps were limited to S-400s, the pain would be half over. Despite all the warnings, the construction of the Akkuyu nuclear power plant was initiated by the then Prime Minister Mr. Erdoğan without a relevant law passed by the Grand National Assembly of Turkey and without a tender, and Russia gained a huge economic and strategic advantage.

In addition to the existing energy dependence, Moscow's hand has been strengthened by the addition of pipelines under the Black Sea (there is an agreement to lay two more pipelines too). When S-400s were added to these, Washington and NATO took some restrictive steps.

The most concrete and urgent demand was the complete abandonment of the S-400s. Now, this demand is facing Ankara on the issue of debt.

In the fight against the virus, the government, which is trying to raise money from the people under the slogan "We are self-sufficient", has gone too far from the target.

Since opposition-run municipalities have also been excluded from this work and everything has fallen on the shoulders of the central government, the task of finding credit also fell on Ankara to keep the economy afloat.

Qatar's money is used to finance the wars in Syria and Libya. As for Moscow, “physician, heal thyself”. Therefore, the addresses of other doors to be knocked on have been known since yesterday. However, the terms of the addresses have also been known since yesterday, they are just announcing today. So the question is: if Washington or the IMF does not give up on this S-400 insistence, what will Ankara do to find a loan?

And to what extent do these processes have anything to do with the resignation of Interior Minister Süleyman Soylu, which was not accepted by President Erdoğan? Will President Erdogan use the unaccepted resignation of Süleyman Soylu, whose name is on the US sanctions list, in debt negotiations with Washington, the IMF, and even London? Is there a scenario of debt discussions behind the scenes of an unaccepted resignation? Can the West demand the dismissal of the Interior Minister to lend? Can this requirement also apply to Azerbaijan?

Can the threat of the virus reduce police pressure in debt-seeking countries?