Why are foreign companies leaving Turkey?

Turkish lira is losing value against global currencies

Turkish lira is losing value against global currencies

London … News Time

A major British firm has decided to sell 40% of its shares in Turkey. The decision comes at a time when the Turkish lira is depreciating against global currencies. After the British company leaves Turkey, it is likely that many other international companies will also consider closing their offices in Ankara. One of the main reasons for international companies leaving Turkey is Turkey’s deteriorating economy. The British company Aviva has announced that it will sell 40% of its shares in view of the risk of a deficit in the current financial crisis in Turkey. Aviva had a joint venture with Citigroup and Unit Credit. According to Turkish media, an insurance company, Agia, is expected to buy shares from a British company worth $ 173 million. According to media reports, HSBC, another British investment bank, may also consider closing its business in Turkey.

Earlier this year, the bank announced plans to move its network out of Turkey. The bank said it was ready to return from Turkey if it found a local partner. Volkswagen may be among the global companies leaving Turkey, but Turkish state media say foreign investment in the country is on the rise. Economists believe that the Corona epidemic has negatively affected the business activities of global companies in Turkey. Economic analyst Jan Kiki Chem says investment in Turkey is illogical in the current context. He said that at present large international companies are closing or restricting their business from Turkey. In such a situation, investing in foreign companies is tantamount to putting capital at risk. Speaking to Al Arabiya, he said that the Turkish government has failed to protect foreign capital. The current Turkish government has strained relations with its neighbors, the United States and the West.


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