Aug 28 2018

Germany considering a bailout for Turkey - WSJ

Germany is considering sponsoring a co-ordinated European bailout to prevent the collapse of the Turkish economy, the Wall Street Journal quoted anonymous officials as saying.

“Berlin fears a meltdown of the Turkish economy could spill over into Europe, cause further unrest in the Middle East and trigger a new wave of immigration toward the north,” the newspaper said.

“Such aid would mark a striking rapprochement between Germany and Turkey, close allies for over a century that have become increasingly estranged in recent years as Turkish President Recep Tayyip Erdoğan’s rule has grown more authoritarian.”

A German government official later denied that any aid would be sent to Turkey, according to Bloomberg.

The Turkish lira was sent into freefall at the beginning of August by U.S. President Donald Trump’s decision to sanction two Turkish ministers over the continued jailing of a U.S. missionary detained in 2016.

The United States is threatening to veto any Turkish request for funding from the International Monetary Foundation, the WSJ said, meaning that Europe may have to fill the void.

Erdoğan has not been courting the goodwill of his neighbours to the north, comparing German Chancellor Angela Merkel’s government to Nazi Germany on several occasions over the past few years.

https://www.wsj.com/articles/as-turkey-teeters-germany-considers-offering-a-financial-lifeline-1535459427