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Xinhua General News Service, China
December 27, 2011 Tuesday 1:16 AM EST
Turkey may withdraw 15 bln USD bond reserves from France for Armenian
"genocide" bill: report
ANKARA Dec. 27
Turkey's Central Bank might transfer its 28.8 billion Turkish Liras
(15.3 billion U.S. dollars) of investments in French bonds to other
European countries as part of sanctions against France for the
Armenian "genocide" bill, local media quoted economists as saying on
Tuesday.
"Judging from the recent steps taken by the Turkish government and the
political tone, I can expect the Turkish Central Bank could withdraw
its reserves from France as part of its economic sanctions in the
future," Turkish newspaper Hurriyet Daily News quoted Erol
Katircioglu, professor of the economics department of Istanbul Bilgi
University, as saying.
Further, Kerem Alkin of Istanbul Commerce University said it is the
right of Turkey to withdraw its reserves from France and the move will
prove Turkey is playing sanctions for real, according to the Hurriyet
report.
With a government bond of 28.8 billion Turkish Liras (15.3 billion
dollars), Turkey's Central Bank reserves in France are second only to
the United States' 48.6 billion Turkish Liras (25.7 billion dollars),
according to the report.
By the end of 2010, Turkish Central Bank's total investments in
various banks registered 110.1 billion liras (58.4 billion dollars) .
In European countries, the bank had 17.7 billion liras (9.4 billion
dollars) reserves in Germany, 4.8 billion Liras (2.5 billion dollars)
in Belgium, 4.5 billion liras (2.4 billion dollars) in the Netherlands
and 1.3 billion Liras (689 million dollars) in the United Kingdom.
In 2010, Turkey invested around 17.7 billion liras (9.4 billion
dollars) to purchase the French government bonds amid the euro zone
crisis. "The French economy might face serious difficulties if the
Turkish Central Bank withdraws reserves," said Mehmet Usta, deputy
chairman at Bank Aktif, who also served as general manager at Banque
de Bosphore in France between 1994 and 2007.
France's need for liquidity is rising due to the ongoing European debt
crisis. Turkey's investment in the country would still play an
important role if France could not compensate the amount from any
other source immediately, said Mehmet Usta.
"German bonds would be the primary choice of Turkey's Central Bank
instead of French bonds," Mehmet Usta said.
However, such a move might bring negative effect to Turkey's EU
membership bid, said Erol Katircioglu.
On Thursday, Turkey halts "all political consultations, joint military
activities and maneuvers" in response to the French approval of a
bill, which stipulates criminal sentences and fines for those who
refuse to recognize the killing of Armenians in 1915 as "genocide" in
France.
Turkey and Armenia have been bogged down in a dispute over the World
War I-era deaths of Armenians under the Ottoman rule. Armenia says the
deaths occurred in a "genocide," while Turkey denies the charge and
insists that the Armenians were victims of widespread chaos and
governmental breakdown as the Ottoman Empire collapsed before modern
Turkey was created.
Turkey rejects the term "genocide" for killings of Armenians in the
World War I era, arguing the issue should be left to historians.
Ankara has proposed to establish a joint commission by Turkish,
Armenian and other international historians to discuss incidents in
1915. Armenia has not responded positively to the offer.
December 27, 2011 Tuesday 1:16 AM EST
Turkey may withdraw 15 bln USD bond reserves from France for Armenian
"genocide" bill: report
ANKARA Dec. 27
Turkey's Central Bank might transfer its 28.8 billion Turkish Liras
(15.3 billion U.S. dollars) of investments in French bonds to other
European countries as part of sanctions against France for the
Armenian "genocide" bill, local media quoted economists as saying on
Tuesday.
"Judging from the recent steps taken by the Turkish government and the
political tone, I can expect the Turkish Central Bank could withdraw
its reserves from France as part of its economic sanctions in the
future," Turkish newspaper Hurriyet Daily News quoted Erol
Katircioglu, professor of the economics department of Istanbul Bilgi
University, as saying.
Further, Kerem Alkin of Istanbul Commerce University said it is the
right of Turkey to withdraw its reserves from France and the move will
prove Turkey is playing sanctions for real, according to the Hurriyet
report.
With a government bond of 28.8 billion Turkish Liras (15.3 billion
dollars), Turkey's Central Bank reserves in France are second only to
the United States' 48.6 billion Turkish Liras (25.7 billion dollars),
according to the report.
By the end of 2010, Turkish Central Bank's total investments in
various banks registered 110.1 billion liras (58.4 billion dollars) .
In European countries, the bank had 17.7 billion liras (9.4 billion
dollars) reserves in Germany, 4.8 billion Liras (2.5 billion dollars)
in Belgium, 4.5 billion liras (2.4 billion dollars) in the Netherlands
and 1.3 billion Liras (689 million dollars) in the United Kingdom.
In 2010, Turkey invested around 17.7 billion liras (9.4 billion
dollars) to purchase the French government bonds amid the euro zone
crisis. "The French economy might face serious difficulties if the
Turkish Central Bank withdraws reserves," said Mehmet Usta, deputy
chairman at Bank Aktif, who also served as general manager at Banque
de Bosphore in France between 1994 and 2007.
France's need for liquidity is rising due to the ongoing European debt
crisis. Turkey's investment in the country would still play an
important role if France could not compensate the amount from any
other source immediately, said Mehmet Usta.
"German bonds would be the primary choice of Turkey's Central Bank
instead of French bonds," Mehmet Usta said.
However, such a move might bring negative effect to Turkey's EU
membership bid, said Erol Katircioglu.
On Thursday, Turkey halts "all political consultations, joint military
activities and maneuvers" in response to the French approval of a
bill, which stipulates criminal sentences and fines for those who
refuse to recognize the killing of Armenians in 1915 as "genocide" in
France.
Turkey and Armenia have been bogged down in a dispute over the World
War I-era deaths of Armenians under the Ottoman rule. Armenia says the
deaths occurred in a "genocide," while Turkey denies the charge and
insists that the Armenians were victims of widespread chaos and
governmental breakdown as the Ottoman Empire collapsed before modern
Turkey was created.
Turkey rejects the term "genocide" for killings of Armenians in the
World War I era, arguing the issue should be left to historians.
Ankara has proposed to establish a joint commission by Turkish,
Armenian and other international historians to discuss incidents in
1915. Armenia has not responded positively to the offer.