Turkey: Business as Usual

According to the German-Turkish Chamber of Industry and Commerce (AHK) in Istanbul, the measures, which were taken by the Turkish Government after the coup attempt in July, do not have such a strong impact as feared at first.

At the beginning entrepreneurs were unsettled due to the situation, but meanwhile the trust in the Turkish economy has been restored. According to a survey of the German-Turkish Chamber of Industry and Commerce, more than 50 percent of the AHK member companies would recommend investments to their business partners. Furthermore, the AHK informs that just as many respondents intend to implement their investment decisions. Even though the interest in company foundations declined after the coup attempt, consultancy requests of company founders would have attained the previous level.

As the German-Turkish Chamber of Industry and Commerce reported in August, the anxious company‘s questions were concerned about topics as legal certainty of investments in Turkey, possible restrictions on trade respectively the clearing between Turkey and Germany as well as supply chain‘s stability in view of Turkish partners. The chamber of commerce did neither observe interference regarding the handling of foreign direct investments or national extension investments nor delays in the processing of the merchandise traffic. “Day-to-day businesses of companies are proceeding without restrictions“, the homepage informs. Problems would affect the identification of responsible counterparts in the public administration and the associated delays of decision processes (nearly 45,000 government employees have been suspended). According to the AHK in Istanbul, the Turkish Government confirms that the coup attempt shall not have any impacts on the legal certainty of investments and on the procedures of the economic transactions in Turkey. The Government advises the companies to engage in dialogue both with the chamber of commerce‘s representatives and with the Turkish business partners. Furthermore, the Government recommends to include a safety margin within the transactions. Turning away from the Turkish partners would not do justice to the current situation in the country, the AHK underlined.

Reportedly it is not possible to estimate at the moment how the long-term consequences for the Turkish economy will look like. First reactions of German middle-class companies suggest a time-limited reluctance in view of new investment projects.

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