Wednesday, 19 February 2020

Crisis Costs Turkey US$100 Billion

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  • Turkish Deputy Prime Minister Bulent Arinc. TEMPO/Jacky Rachmansyah.

    Turkish Deputy Prime Minister Bulent Arinc. TEMPO/Jacky Rachmansyah.

    TEMPO.CO, Ankara - The political crisis afflicting Turkish Prime Minister Recep Tayyip Erdogan has caused money market to collapse and cost Turkey US$100 billion or around Rp1,216 trillion.

    Turkish Deputy Prime Minister Bulent Arinc said the attack on the government has shaken the economy. The government is working to enforce law on judges and attorneys who abuse their authority. "We are talking about damage of over US$100 billion," he said last night.

    Previously, the police arrested 52 people of Erdogan's inner circle - among them are three ministers' children, Mayor of Istanbul, construction employers and Finance Ministry official. They were accused of being involved in corruption and bribery in infrastructure project and gold embezzlement to Iran.

    Erdogan reacted to the case by transferring and discharging more than 70 senior officials who were accused of abusing their authority. He also accused his former ally in Erdogan’s Justice and Development Party (AKP), Fethullah Gulen, of being behind the crisis. Gulen is known to have close relations with the police, attorneys and court leaders.

    Turkey has been known as a model of democracy in the Muslim world and an economic powerhouse. However, the crisis has crushed Turkey’s currency and caused stocks to fall. Last night, lira reached its lowest value.

    Erdogan has struggled to maintain his power in Turkey which has been ongoing for 11 years. Erdogan supporters said this case came up to drop Erdogan's popularity in the election in March. "This operation is an assassination attempt ahead of elections," Home Minister Efkan Ala said.