WHAT’S THE STORY?
IT started with the arrest of a US preacher almost two years ago. Yesterday, Turkey’s currency tumbled another seven per cent from the record low reached on Sunday as a result of the dispute over the American national.
Turkish President Recep Tayyip Erdogan has accused the Nato ally of trying to stab its strategic partner “in the back”.
WHO IS THE PREACHER?
EVANGELICAL pastor Andrew Brunson was arrested in October 2016 and is accused of aiding a group headed by exiled religious leader Fethullah Gulen, who the Erdogan administration blames for a failed coup against the president that same year.
The group Brunson has been linked to is regarded as a terrorist organisation and, if found guilty, he could face 35 years’ imprisonment.
Turkish state media have reported that the prosecution case is almost ready. Burnson was released from jail last month to house arrest pending trial.
However, the White House says there is no credible evidence against the US citizen, claiming he has been subjected to “unjust” detention. American authorities have refused to extradite Pennsylvania-based Gulen.
HOW IS THAT LINKED TO THE CURRENCY CRISIS?
THE US imposed sanctions over the Brunson case and on Friday doubled tariffs on steel and aluminium. There are fears that Turkish firms with heavy borrowing may face difficulties in repaying loans set in euros and dollars.
The central bank’s attempt to boost the market failed to achieve the desired effect.
The country’s stock market has suffered a 17% hit, with government borrowing costs up to 18% a year and inflation now at 15%.
Overall, the lira has slumped by 45% this year, but higher interest rates have been ruled out.
WHAT EFFECT IS THAT HAVING ON PEOPLE?
PRICES of staple goods have risen, making basic foods, fuel and utilities all more expensive.
However, there has been some good news for tourism-related businesses, with an increase in holiday bookings to Turkey as foreigners have taken advantage of lower prices.
In the UK, travel specialists Thomas Cook and TUI have both reported a surge in popularity during the peak summer period, despite concerns about safety in some parts.
SO WHAT DID ERDOGAN SAY?
IN comments directed at America during a news conference, the president stated: “You act on one side as a strategic partner, but on the other, you fire bullets into the foot of your strategic partner.
“We are together in Nato and then you seek to stab your strategic partner in the back.”
In more conciliatory language, Foreign Minister Mevlut Cavusolgu urged the White House to “remain loyal to ties based on traditional friendship and Nato alliance”. He added: “We support diplomacy and negotiations but it is not possible for us to accept impositions.”
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