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Events in Turkey will be reflected on Romania only commercially, Coface notes

The recent turbulent events unfolded in Turkey following a failed military coup will affect Romania only commercially, by Romanian exports slowdown, given that this is the main country of destination for local exports of non-EU countries, according to Coface Romania.

But, according to Iancu Guda, Services Director Coface Romania CMS, the impact on the Romanian business environment will be very limited, due to the national economy reduced footprint of companies owned by Turkish capital.

“The attempted coup d’etat in Turkey, and the radical measures that preceded it, have fueled a lot of uncertainty on the capital market. In less than a week, the Turkish lira depreciated by almost 6 percent against the US dollar, index of capital market in Turkey has lost 12 percent and non-residents’ capital investments in Turkey fell by USD 8 billion,” Guda noted.

Turkey ranks 5th as the destination of Romanian exports and 1st among non-EU countries, namely 11th place as origin country for imports.

In a foreign direct investment ranking for 2008 – 2015 period, Turkey ranks 18th, with a contribution of only 0.5 percent to total FDI. According to statistics data, the number of companies with Turkish capital increased from 576 in 2008 to 1,007 in 2015.

Romania‘s offer corresponds to Turkish market needs

Romania’s offer for the Turkish market is generous and corresponds to its needs, Economy, Trade and Relations with the Business Environment Minister Costin Borc said, during the discussions with Turkish Development Minister Lutfi Elvan on the development of the economic and commercial relations, a press release informs.

Deputy PM Costin Borc and Minister Lutfi Elvan made an assessment on Wednesday of the bilateral economic relations. Minister Elvan presented the economic situation, reassuring the Romanian side on the stability of the business environment in his country, pointing out that Romania remains a strategic partner for Turkey.

Costin Borc appreciated, on this occasion, the importance of the Romanian-Turkish relations, Turkey’s role in Romania’s foreign trade, as first extra-community partner and underscored the need to diversify Romanian exports, as well as to strengthen mutual investments, relevant indicators in consolidating the economic partnership, pointing out that Romania’s offer for the Turkish market is generous and corresponds to its needs.

The two officials agreed that the discussions on each area of the bilateral economic cooperation be resumed this autumn in Ankara, during the meeting of the Romanian-Turkish mixed inter-governmental committee on economic cooperation, with Deputy PM Costin Borc holding the Romanian chairmanship.

At end-May 2016, the value of Romanian – Turkish commercial exchanges totaled EUR 1.81 billion, down 0.7 percent from the first five months of 2015. Exports totaled EUR 766 million, declining 20.9 percent, and import stood at EUR 1.04 billion, 22.2 percent higher than in the first five months of 2015. The trade balance was in Turkey’s favour with EUR 279.9 million.

About Anca Bernovici