British magazine: Turkey faces a collapse in the economy due to corruption of ruling elite

According to a report by "The Economist" in a report, "When Turkish President Recep Tayyip Erdogan announced the purchase of the S-400 defense system from Russia, he was aware of the major consequences that would follow this decision, yet he was unable to operate this system until now, and Turkish companies were expelled from the manufacture of the F-35 aircraft, and incurred losses exceeding $ 9 billion.

In detail, the Kale group, an aviation and construction group, has assembled the engine parts of an American F-35 fighter plane since 2005, but when Turkish President Recep Tayyip Erdogan bought a missile defense system from Russia last year, the US government expelled Turkey from the f-35 program.

Although the Turkish Air Force requested 100 of these aircraft, but they did not receive any of them, Turkish companies lost contracts valued at about $ 9 billion, and Kale was among the most affected, and then the Covid 19 virus came.

The magazine added that doing business in Turkey requires courage now. In the past five years, the country has suffered several strikes that affected business confidence (dozens of major attacks, a violent coup attempt followed by a crackdown on dissidents, a severe currency crisis, and diplomatic differences with Europe and America, seven tensions and divisive elections), but nothing was more dangerous to Turkey's economy like the pandemic.

"There is a serious recession going on, with exports declining, the lira weakening, unemployment reaching record levels, and the tourism industry, which brings in $ 35 billion, is preparing for its worst year in decades," the report continued.

And the report added: "Kale has remained the same, as it finished the current work on F-35s and is still facing turmoil, with the impact of closures on global supply chains, Kale has struggled to obtain supplies from abroad and at home, as financially strapped customers are canceling orders. "

"We are working between 50% and 70%," the company’s director, Zainab Bodor Okyay, said in April. The company has not cut jobs, and Erdogan's government has banned companies from laying off for six months.

The report said that instability in recent years, in addition to losing the independence of the central bank and the seizure of mostly unqualified government loyalists on key institutions, has driven Western investors abroad.

For their part, the Chinese are cautious so far, as China has invested less in Turkey than in Venezuela, and the report pointed out that if its institutions, especially the central bank and the judiciary, and relations with America and Europe are not reformed, foreigners will stay away, waiting for Turkish companies to recover from the pandemic. Alone.

T/S

ANHA