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Turkey in final stages of talks for up to $10bn funding from Qatar: Report
One of the officials said the total funding could take the form of a swap, Eurobond or other method
By News Desk - November 25 2022
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A money changer counts Turkish lira banknotes at a currency exchange office in Ankara, Turkey. 27 September, 2021.
(Photo credit: Reuters/Cagla Gurdogan)

Turkey and Qatar are in the final stages of talks for Doha to provide up to $10 billion in funding for Ankara, including up to $3 billion by the end of this year, according to a report by Reuters on 24 November.

A Turkish official told the news agency, “We have reached the final stage of negotiations on providing a new resource from Qatar to Turkey. A minimum amount of 8 billion dollars is foreseen. The figure may vary between 8-10 billion dollars in total.”

“Resources will be obtained, with $2-3 billion by the end of this year (and) the rest to come next year. This could be a swap or Eurobond, but they are discussing several methods. There is a mutual agreement,” the official added.

The economic and diplomatic relations between Qatar and Turkey gained momentum when Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt cut diplomatic, trade, and transport ties with Qatar from mid-2017 to early 2021.

During this period, Turkey and Qatar strengthened their economic relations. The Central Bank of the Republic of Turkey signed a swap agreement with the Qatar Central Bank, which was first expanded to $5 billion, and then $15 billion. According to Andalou News Agency, Qatar also bought shares in Borsa Istanbul and the Eurasia tunnel.

The Ministry of Treasury and Finance follows an exchange rate policy to balance the foreign exchange supply and demand with domestic regulations. On the other hand, since the Western capital has reduced its investments with the current preferences, it supports economic policies, especially the exchange rate, by providing foreign resources to other countries, according to Middle East Eye.

On 23 November, Saudi Arabia announced that it is in the final stages of negotiations for a deposit of $5 billion to Turkey, reported by Middle East Monitor.

A Turkish official said discussions are in the final stage with Saudi Arabia on a swap or deposit agreement. However, the central bank declined to comment on the matter.

Turkey’s central bank has local currency swap agreements with several of its economic partners worth a total of $28 billion, Reuters explained. It signed similar deals with China for $6 billion, Qatar for $15 billion, and the UAE for about $5 billion.

 

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