Two more Turkish construction firms file for bankruptcy
Two major Turkish construction firms have filed for bankruptcy, local Turkish press reported this week.
Turkish construction companies have been hard hit by the country’s economic tribulations this year, which include a loss of almost 40 per cent of the lira’s value against the dollar.
Since a large portion of private debt in Turkey is owed in dollars, the weak currency, high inflation and high interest rates have hit struggling construction firms hard, despite government efforts to prop the vital sector up.
The Turkish government placed a cap on mortgage interest rates before the elections in June this year and last month offered further incentives to house buyers in an attempt to boost the market.
Despite this, Nuhoğlu Construction, a firm known for its giant projects in Turkey’s three largest cities of Istanbul, Ankara and İzmir, has filed for bankruptcy after over thirty years in business, Turkish news site Diken reported on Tuesday.
The company had already been forced to halt construction on its Yenitepe project in the west Turkish city of İzmir, costing 900 workers their jobs.
Ceylan, another well-known construction firm in business since the 1980s has also filed for bankruptcy citing financial problems, Turkish press reported on Monday.
Construction firms have had a bad year in 2018, with 70 per cent of private companies forced to cancel projects due to the fall in the lira’s value, the head of the Turkish Construction Contractors Confederation reported in September.
Another large construction firm, Ozensan Taahhut, filed for bankruptcy in July.