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'BLACK SEA WILL BENEFIT IF TURKISH BORDER WITH ARMENIA REOPENED'
Today's Zaman
Dec 3 2012
Turkey
Businesses and people in the Black Sea region will only stand to
benefit if Ankara and Yerevan agree to re-open their long-closed
border, Black Sea Trade and Development Bank (BSTDB) General Manager
Andrey Kondakov said in an interview with Today's Zaman.
Kondakov was recently in İstanbul to participate in the Southeast
Europe Business Forum, and he met with Today's Zaman to evaluate the
latest developments in the region as well as his bank's aspirations
for the future. The Thessaloniki-based bank was established in 1997
to promote economic development and regional cooperation among Black
Sea Economic Cooperation (BSEC) members.
"As a development bank we promote regional cooperation and
trade. ... We will welcome any initiative leading to increased business
interaction among members and among businesses and peoples in the
Black Sea region, and the reopening of the border with Yerevan is
definitely one such move," he explained. Kondakov stressed more open
borders will help to develop regional infrastructure, which brings
more business opportunities and supports growth and prosperity in
the BSEC member countries.
Turkey closed its border with Armenia in 1993 in solidarity
with Azerbaijan after Armenian armed forces occupied 20 percent
of Azerbaijan in 1992, including the Nagorno-Karabakh region, a
territorial conflict that has remained unresolved between Armenia and
Azerbaijan since then. Certain NGOs and civil society organizations
have separately attempted to coax both countries' governments into
normalizing ties; however, no progress at a desired level has been
made so far. Both Turkey and Armenia are members of the BSEC.
Kondakov argued that as a regional economic powerhouse Turkey could
lead initiatives to lead to better integration between member states'
economies.
"With respect to Black Sea regional trade, Turkey has, in many
respects, been the biggest 'champion' over the course of the last
decade. Between 2000 and 2010, Turkey's trade within the BSEC grew
422 percent (versus 256 percent for its overall external trade over
the same period), with the growth spread out to all BSEC countries,"
he noted. Kondakov said BSEC members should consider measures to
mitigate the impact of problems in global markets on each of the
region's countries. "In this context, governments might provide
incentives for increased regional trade and investment. For its part,
the BSTDB provides a number of incentives and is willing to increase in
the coming years both the number and the volume of these operations,"
he explained.
Characterizing Turkey's rebound from the 2008 global financial crisis
as impressive, he said a tight fiscal policy also helped to sharply
decrease the budget deficit and push the public debt to gross domestic
product (GDP) ratio to reasonable levels. "However, two worrying trends
to the otherwise favorable picture are that consumption is growing
more rapidly than investment and that Turkey's current account deficit
has risen very rapidly to around minus 10 percent of GDP for 2011."
As regards the bank's plans for the coming months, he said the
bank would be "more flexible than ever" in its approach to adapt to
changing circumstances in global financial markets to either seize
opportunities or protect itself from external shocks. He underlined
the importance of "controlled growth in portfolios amid uncertainties."
http://www.todayszaman.com/news-300050-black-sea-will-benefit-if-turkish-border-with-armenia-reopened.html
From: A. Papazian
Today's Zaman
Dec 3 2012
Turkey
Businesses and people in the Black Sea region will only stand to
benefit if Ankara and Yerevan agree to re-open their long-closed
border, Black Sea Trade and Development Bank (BSTDB) General Manager
Andrey Kondakov said in an interview with Today's Zaman.
Kondakov was recently in İstanbul to participate in the Southeast
Europe Business Forum, and he met with Today's Zaman to evaluate the
latest developments in the region as well as his bank's aspirations
for the future. The Thessaloniki-based bank was established in 1997
to promote economic development and regional cooperation among Black
Sea Economic Cooperation (BSEC) members.
"As a development bank we promote regional cooperation and
trade. ... We will welcome any initiative leading to increased business
interaction among members and among businesses and peoples in the
Black Sea region, and the reopening of the border with Yerevan is
definitely one such move," he explained. Kondakov stressed more open
borders will help to develop regional infrastructure, which brings
more business opportunities and supports growth and prosperity in
the BSEC member countries.
Turkey closed its border with Armenia in 1993 in solidarity
with Azerbaijan after Armenian armed forces occupied 20 percent
of Azerbaijan in 1992, including the Nagorno-Karabakh region, a
territorial conflict that has remained unresolved between Armenia and
Azerbaijan since then. Certain NGOs and civil society organizations
have separately attempted to coax both countries' governments into
normalizing ties; however, no progress at a desired level has been
made so far. Both Turkey and Armenia are members of the BSEC.
Kondakov argued that as a regional economic powerhouse Turkey could
lead initiatives to lead to better integration between member states'
economies.
"With respect to Black Sea regional trade, Turkey has, in many
respects, been the biggest 'champion' over the course of the last
decade. Between 2000 and 2010, Turkey's trade within the BSEC grew
422 percent (versus 256 percent for its overall external trade over
the same period), with the growth spread out to all BSEC countries,"
he noted. Kondakov said BSEC members should consider measures to
mitigate the impact of problems in global markets on each of the
region's countries. "In this context, governments might provide
incentives for increased regional trade and investment. For its part,
the BSTDB provides a number of incentives and is willing to increase in
the coming years both the number and the volume of these operations,"
he explained.
Characterizing Turkey's rebound from the 2008 global financial crisis
as impressive, he said a tight fiscal policy also helped to sharply
decrease the budget deficit and push the public debt to gross domestic
product (GDP) ratio to reasonable levels. "However, two worrying trends
to the otherwise favorable picture are that consumption is growing
more rapidly than investment and that Turkey's current account deficit
has risen very rapidly to around minus 10 percent of GDP for 2011."
As regards the bank's plans for the coming months, he said the
bank would be "more flexible than ever" in its approach to adapt to
changing circumstances in global financial markets to either seize
opportunities or protect itself from external shocks. He underlined
the importance of "controlled growth in portfolios amid uncertainties."
http://www.todayszaman.com/news-300050-black-sea-will-benefit-if-turkish-border-with-armenia-reopened.html
From: A. Papazian