A few weeks after the Turkish government bank fails to comply, it will face a dilemma of losing the equivalent of the net reserves of the Turkish central bank. By mid-May, he will incur fines equivalent to the value of Turkey’s economic production for a year.
Prospects for immediate compliance
But perhaps none of these sanctions will materialize on the ground, as the authorities are likely to consider the interests of investors in the first place. Christian Maggio, head of emerging market research at TD Securities in London, expressed his belief that “these threats will go ahead,” adding that if this were the case, the lira would have performed completely differently, or that markets might assume that Bank Khalq would commit immediately ? “
A fine of one million dollars a day
The US government asked the mid-week of this week for a federal judge to impose a daily fine of one million dollars, which doubles with each week in which Khalq Bank refuses to appear before the court, as it faces accusations of aiding in evading the US sanctions imposed on Iran.
“Frankly, the fine that grows so large is disproportionate to the word,” he said. “Indeed, post-World War I Germany did not impose on it such high costs as compensation.”
Scheme of expected fines
Bloomberg prepared a blueprint showing the expected size of the financial fine imposed against Bank Khalq, in case it was imposed and the Turkish bank refraining from appearing before the court, as weekly and official holidays were not counted:
On April 3:
$ 10 billion, equivalent to more than the Turkish government’s external borrowing target for this year.
On April 17:
41 billion dollars, more than Turkey’s international reserves.
On April 24:
82 billion dollars, more than the total reserves of the Turkish Central Bank.
On April 27:
98 billion dollars, more than the balance of external debt of the Turkish central government.
On May 1st:
164 billion dollars, equivalent to the total of Turkey’s foreign debt – public and private – that is due to be repaid over the next 12 months.
• On May 5:
$ 229 billion, more than the market value of the Istanbul Stock Exchange.
On May 18:
786 billion dollars, more than Turkey’s GDP.
On May 29:
1 trillion dollars.