A recent “judicial crisis” that emerged following a controversial decision by the Supreme Board of Judges and Prosecutors (HSYK) to strip specially authorized Erzurum Prosecutor Osman Şanal of his authority because of his probe into a now-jailed prosecutor fueled rumors of a possible closure case against the AK Party. Political circles in Ankara have already started discussing an early general election option, with some suggesting that an early election was the only way to emerge from the current tension.
Speaking to reporters in his first press conference since becoming general manager, Özdemir said they placed heavy importance on maintaining political stability in the country, emphasizing that the banking industry demands that the general elections be held “as scheduled.” “This is a demand shared by the entire banking sector. We do not want to see any possible political tension harm the country’s economy.” Recalling that Turkey has experienced similar problems in the past and that it has been proven that political instability deals a major blow to the markets, Özdemir said: “We have seen in the past that banks had to recall loans or increase interest rates amid political clashes. This should not happen again.”
Özdemir said some international rating agencies had downgraded Turkey’s credit rating in recent years, citing a volatile political atmosphere in the country. “However, we all saw that these agencies upgraded Turkey’s credit rating despite a global financial crisis last year,” he added, underlining that this clearly indicates political stability also benefits Turkey’s rating in the eyes of foreign investors.
Özdemir said Turkey’s current credit ratings in the international arena are still below the desired level and that the country, having managed to overcome the crisis’ troubles to a great extent, “deserves a better position.” The Bank Asya head said they have faith rating agencies will raise Turkey credit ratings even further in the weeks to come.
