Turkish state Fund: Erdogan's long Arm in the economy

The Istanbul stock exchange has now Corona once left behind. In the most vigorous stock market rally since 1988, the economic Agency Bloomberg, the downstream has been attributed to the important Index of the largest 100 values of the Istanbul stock exchange, the BIST 100, to run in the start of the week his since the beginning of the year made up for its losses. Since the Low on may 23. In March, the Index had risen by 36 per cent, and I left the other stock indices such as the MSCI Emerging Markets and Stoxx Europe 600 behind. This is not only for enthusiastic domestic investors, the wear due to negative interest rates and a lack of investment opportunities for your money in the stock market. President Recep Tayyip Erdogan will be delighted with it.

Andreas Mihm

Economics correspondent in Vienna.

Because of him and his son-in-law, Minister of Finance, Berat Albayrak, controlled Turkish state Fund is good in domestic stock companies invested: He holds nearly 7 percent of Türk Telekom, 36 percent of VakifBank, one of Turkey's largest banks, 49 percent of Turkish Airlines and a full 100 percent of the largest tea producers in the country, bottom-six teams.

Political signs

20 companies so far. Soon the majority of the mobile network operator Turkcell has been added. After a long dispute, the Swedish Telia sold its 26 percent stake for $ 530 million. The Istanbul stock exchange is not part of, with 90 per cent of the Club, which is why it fell Erdogan by the end of 2019 hard to make the American ex-prisoners of bankers Hakan Atilla the boss. Political signs everywhere. Atilla had been convicted of violation of the American of the Iran sanctions to 32 months in prison.

Like many countries, Turkey has a sovereign wealth Fund. On Tuesday, the American Sovereign Wealth Fund Institute rated the assets of 222 billion dollars. He was ranked 14 of 93. But the Fund is difficult to compare, he plays in a League of his own.

Differently than the model States with "Sovereign Wealth Funds", such as Norway, Abu Dhabi, Saudi Arabia or Singapore, Turkey does not generate Income through exports, such as, for example, Oil and Gas in the state budget or in the current account, you could invest in a state Fund "for a rainy day" or future generations, especially abroad. On The Contrary. Turkey accounted for regularly, a deficit in the current account and invested at home.

Against the Background of Gunter analyzed Deuber of Raiffeisen Bank International in Vienna: "in this respect, the activities of the Turkish state-Fund, seem to be rather direct interior - and to be economic of a political nature." History speaks for this Thesis: Established the Fund in 2016, had been, after the failed coup against Erdogan. At the time of state were transferred to the investments in the Fund, which had been held to date, the Ministry of Finance for the purpose of privatization. Life was supposed to. the Fund of the receipts from him, also awarded license for sale of the state lottery and dividends