The oil fund has gone on a Turkia hit

Wednesday 22 August 2018

The oil fund’s investments in Turkey are affected by the crisis in the country, says the managers. The fund owns Turkish shares for NOK 10 billion, including a number of banks.

The oil fund has gone on turkey-click

The oil fund’s investments in Turkey are affected by the crisis in the country, says the managers. The fund owns Turkish shares for NOK 10 billion, including a number of banks.
The value of the Turkish-Ukrainian investment has fallen after the crisis in the country, with strong currency weakening and stock market decline. The fund owns, for example, shares for more than one billion dollars in the Guarantee Bank. This is the Turkish bank headquarters in Istanbul.

The value of the Turkish-Ukrainian investment has fallen after the crisis in the country, with strong currency weakening and stock market decline. The fund owns, for example, shares for more than one billion dollars in the Guarantee Bank. This is the Turkish bank headquarters in Istanbul. Photo: Murad Sezer Reuters

As a global investor, the Oil Fund is also affected by the fact that Turkey is in a hurry with the United States, which has contributed to a sharp currency meltdown and increased uncertainty about the country’s economy.

At the beginning of the year, the Oil Fund had investments of NOK 23.7 billion in Turkey, NOK 10.6 billion in shares and NOK 13.1 billion in fixed income securities.

In the third quarter, the Turkish lira has fallen sharply. This affects the Oil Fund’s values ​​measured in NOK quite strongly. There have also been shares in Turkey, the managers of the Oil Fund point out.

“Of course, the inventories there have been heavily diluted because of this,” said Trond Grande, Deputy Chairman of Norges Bank Investment Management, at a press conference on Tuesday.

He does not want to say exactly how much the fund’s values ​​have fallen after the Turkey crisis.

Milliaries in Turkish banks

Among the 51 Turkish assets of the Fund at the beginning of the year, NOK 1.17 billion was invested in Akbank Turk, NOK 1.06 billion in Guarantee Bank and NOK 495 million in Isbank.

In addition, the fund had NOK 896 million in Turkish Airlines, NOK 685 million in steel producer Erdemir and 440 million in the white goods company Arcelik.

The oil fund also owned shares of NOK 705 million in the refinery company Tupras, 422 million in the contractor Tekfen Holding and NOK 552 million in the Turkcell mobile company.

At year-end, the oil fund owned Turkish government bonds for NOK 12.98 billion. Otherwise, the only other Turkish fixed income fund was a 120 million kronor in one of the country’s largest banks, Vakifbank.

Critical President

In a pre-recorded speech before the Muslim holidays, Al-Adha, Turkey’s President Recep Tayyip Erdogan described Monday the recent currency crisis as an attack on the Turkish population, according to Reuters news agency.

“The attack on our economy is certainly no different from attacks on our bean top and our flag. The goal is the same. The goal is to force Turkey and its people in the knee to catch it, says Recep Erdogan in a televised voice.

He claimed that the country is able to resist the crisis.

Turkey’s currency has been under severe pressure throughout the year, after the president has tightened the grip of the country’s central bank and the United States has imposed sanctions.

My comment on this is:

What in the world do we want to have Muslim investments in the oil fund! NO! Islam is a destiny we must resist. We do not want their black money or have anything to do with them at all.

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