Cyprus News | Banking Law

Cyprus News | Banking LawStrange, I thought it was illegal to make statements which could cause a run on banks. Well at least in North Cyprus, anyway. Apparently, this doesn’t apply in Turkey where, according to the Wall Street Journal, PM Erdogan made the following request of his followers, as part of an explaination why the stock market was falling; along with the exchange rate, and no doubt a drop in tourism and inward investment:

“In a series of speeches over the weekend, Mr. Erdogan has blamed a cabal of economists, investors and journalists the government calls the ‘interest-rate lobby’ for spurring the unrest to manipulate Turkish markets for their own financial gain. The prime minister also urged supporters in back-to-back rallies on Sunday to take out their money from private banks and deposit it in state banks.”

I wonder if PM Erdogan even cares what those outside Turkey think about statements such as these? While he seemed to be pro-capital, capitalists were willing to risk investing in Turkey. If he can unilaterally, at an apparent whim, potentially destroy banks then Turkey no longer seems a place to trust your money, especially during these difficult economic times.

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