

Currently released so far... 12646 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AORC
AF
AU
ASEC
AMGT
AS
APER
AR
AEMR
AG
ARF
AJ
AA
AINF
APECO
AODE
ABLD
AMG
ATPDEA
AE
AMED
AGAO
AFIN
AL
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
AID
ASCH
AM
AORL
ASEAN
APEC
ADM
AFSI
AFSN
ADCO
ABUD
AN
AY
AIT
ACOA
ASIG
AADP
AGR
ANET
ADPM
AMCHAMS
ATRN
ALOW
ACS
APCS
AFFAIRS
ADANA
AECL
ACAO
AORG
AROC
AO
ACABQ
AGMT
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
AFU
BR
BTIO
BY
BO
BA
BU
BL
BN
BM
BF
BEXP
BK
BG
BB
BTIU
BBSR
BRUSSELS
BD
BIDEN
BE
BH
BILAT
BC
BT
BP
BX
BMGT
BWC
CS
CA
CH
CD
CO
CE
CU
CVIS
CASC
CJAN
CI
CPAS
CMGT
CDG
CIC
CAC
CBW
CWC
COUNTER
CW
CT
CR
CY
CNARC
CACM
CG
CB
CM
CV
CIDA
CLINTON
CHR
COE
CIS
CDC
CONS
CF
CFED
CODEL
CBSA
CEUDA
COM
CARSON
COPUOS
CIA
CL
CN
CROS
CAPC
CTR
CACS
CONDOLEEZZA
CICTE
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
CARICOM
CSW
CITT
CDB
CJUS
CTM
CAN
CLMT
CBC
EAID
ECON
EFIS
ETRD
EC
ENRG
EINV
EFIN
EAGR
ETTC
ECPS
EINT
EPET
ES
EIND
EAIR
EU
EUN
EG
ELAB
EWWT
EMIN
ECIN
ESA
ER
ETRDEINVECINPGOVCS
EAIG
ET
ETRO
ELTN
EI
EN
EUR
EK
EUMEM
ENIV
EPA
ENGR
EXTERNAL
EUREM
ELN
EUC
ENERG
EZ
ERD
EFTA
ETRC
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ENVR
ESENV
ENNP
ERNG
ENVI
ETRDECONWTOCS
ECINECONCS
EFINECONCS
EXIM
ELECTIONS
ECA
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
IC
IV
IAEA
IR
IT
IO
IN
IS
IZ
IMO
IPR
IWC
ICAO
ILO
ID
ICTY
ICJ
INMARSAT
INDO
IL
IMF
IRS
IQ
IA
ICRC
IDA
IAHRC
IBRD
ISLAMISTS
IDP
IGAD
ILC
ITRA
ICTR
ITU
IBET
ITF
INRA
INRO
INTELSAT
IEFIN
IRC
IRAQI
ITALY
ISRAELI
IIP
ITPGOV
ITALIAN
INTERNAL
INTERPOL
IEA
INRB
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
KBTR
KPAO
KOMC
KCRM
KDEM
KHIV
KBIO
KTIA
KMDR
KNNP
KSCA
KTIP
KWMN
KIPR
KCOR
KRVC
KFRD
KPAL
KWBG
KE
KTDB
KUNR
KSPR
KJUS
KGHG
KAWC
KCFE
KGCC
KOLY
KSUM
KACT
KISL
KTFN
KFLU
KSTH
KMPI
KHDP
KS
KHLS
KSEP
KMRS
KID
KN
KU
KAWK
KSAC
KCOM
KAID
KIRC
KWMNCS
KMCA
KNEI
KCRS
KPKO
KICC
KIRF
KPOA
KV
KDRG
KSEO
KVPR
KTER
KBCT
KFIN
KGIC
KCIP
KZ
KG
KWAC
KRAD
KPRP
KTEX
KNAR
KPLS
KPAK
KSTC
KFLO
KSCI
KIDE
KO
KOMS
KHSA
KSAF
KPWR
KVRP
KENV
KNSD
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCGC
KVIR
KFSC
KDDG
KPRV
KTBT
KWMM
KX
KMFO
KR
KMOC
KRIM
KCRCM
KBTS
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KTLA
KCSY
KTRD
KNPP
KJUST
KCMR
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KPAI
KICA
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KHUM
KREC
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KMIG
KRGY
KIFR
MARR
MOPS
MASS
MX
MNUC
MCAP
MO
MR
MEPP
MTCRE
MAPP
MEPN
MZ
MT
ML
MA
MY
MIL
MD
MASSMNUC
MU
MK
MTCR
MUCN
MAS
MEDIA
MAR
MC
MI
MQADHAFI
MPOS
MARAD
MG
MTRE
MASC
MW
MRCRE
MP
MOPPS
MTS
MLS
MILI
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
NATO
NZ
NL
NO
NK
NU
NPT
NI
NG
NEW
NSF
NA
NPG
NSG
NE
NSSP
NS
NDP
NSC
NAFTA
NH
NV
NP
NPA
NSFO
NT
NW
NASA
NORAD
NGO
NR
NATIONAL
NIPP
NZUS
NC
NRR
NAR
NATOPREL
OEXC
OTRA
OPRC
OVIP
OAS
OECD
OIIP
OSCE
OREP
OPIC
OFDP
OMIG
ODIP
OVP
OSCI
OIC
OIE
OPDC
ON
OCII
OPAD
OBSP
OFFICIALS
OPCW
OHUM
OES
OCS
OTR
OSAC
OFDA
PGOV
PREL
PM
PHUM
PTER
PINR
PINS
PREF
PARM
PL
PK
PU
PBTS
PBIO
PHSA
PE
PO
PROP
PA
PNAT
POL
PLN
POLITICAL
PARTIES
PCUL
PAK
PGGV
PAO
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PAS
PGIV
PHUMPREL
PDOV
PHUMPGOV
PCI
PTBS
PEL
PG
POLITICS
POLICY
PINL
POGOV
POV
PRAM
PP
PREO
PAHO
PBT
PREFA
PSI
PAIGH
POSTS
PMIL
PALESTINIAN
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PINF
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PROV
PGOC
PY
PHUH
PF
PRL
PHUS
RU
RS
RO
RW
RP
RFE
REGION
REACTION
REPORT
RCMP
RM
RSO
ROBERT
RICE
RSP
RF
ROOD
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
SENV
SU
SCUL
SOCI
SNAR
SL
SW
SMIG
SP
SY
SA
SHUM
SZ
SYRIA
SF
SR
SO
SPCE
SARS
SN
SC
SIPRS
SI
SYR
SEVN
SNARCS
SH
SAARC
STEINBERG
SG
SCRS
SENVKGHG
SAN
ST
SIPDIS
SNARIZ
SNARN
SSA
SK
SPCVIS
SOFA
SANC
SWE
SHI
SEN
TW
TU
TBIO
TSPL
TPHY
TRGY
TC
TT
TSPA
TINT
TERRORISM
TX
TR
TS
TN
TD
TH
TIP
TNGD
TI
TZ
TF
THPY
TP
TBID
TL
TV
TK
TO
TRSY
TURKEY
TFIN
TAGS
UN
UK
UNSC
UNGA
US
UNESCO
UP
UNHRC
UNAUS
USTR
UNDP
UNEP
UNMIK
UY
UNCHR
UNO
UG
UZ
UNPUOS
USEU
UNDC
UNICEF
UV
UNHCR
UNCND
UNCHC
UNCSD
USUN
USOAS
UNFCYP
USNC
UNIDROIT
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
Browse by classification
Community resources
courage is contagious
Viewing cable 02ANKARA8596, TURKISH MARKETS AWAIT IMF REACTION TO COURT
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #02ANKARA8596.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
02ANKARA8596 | 2002-11-25 15:47 | 2011-05-17 19:00 | CONFIDENTIAL | Embassy Ankara |
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 008596
SIPDIS
STATE FOR EUR/SE, EB/IFD/OMA AND E
TREASURY FOR OASIA - MILLS AND LEICHTER
STATE PASS USTR - NOVELLI AND BIRDSEY
E.O. 12958: DECL: 09/02/2006
TAGS: ECON EFIN PREL TU
SUBJECT: TURKISH MARKETS AWAIT IMF REACTION TO COURT
DECISION ON PAMUKBANK
REF: ANKARA 8545
Classified by Economic Counselor Scot Marciel for reasons 1.5
(b,d).
¶1. (C) Summary: Turkish markets are awaiting IMF and GOT
reaction to the administrative court decision of November 22,
which suspended the take-over of Pamukbank by the Banking
Regulation and Supervision Agency (BRSA). At the heart of
this legal battle lie about $5 billion in loans made by Pamuk
and Yapi Kredi to their owner Cukurova Holding. Cukurova's
legal challenge to the Pamuk take-over is part of the
bargaining over the repayment of these loans. Failure to
reach agreement on repayment terms poses systemic risks to
the banking sector, given that Pamuk and Yapi Kredi have $12
billion in deposits or about 15 percent of all deposits in
the Turkish banking system. Markets will watch closely on
both this issue and the primary surplus issue during next
week's visit of IMF Europe Director Deppler, and the December
9 IMF Mission to Turkey. End Summary.
¶2. (C) On November 22, BRSA Vice Presidents Ceyla
Pazarbasioglu and Teoman Kerman called us in to discuss the
court decision on Pamukbank (reftel). They summed up the
situation as follows:
-- The administrative court ("Danistay" or Council of
State), sitting in general assembly, suspended the BRSA's
June 18 take-over of Pamukbank. According to press reports,
the reason for the suspension was that BRSA didn't
sufficiently consider Cukurova's recapitalization plan, which
would have merged the insolvent Pamuk into sister bank Yapi
Kredi. BRSA will have 30 days (from the date of delivery of
the court's opinion, which hasn't yet occurred) to return
Pamuk to Cukurova, pending a final court decision on the
merits of the case. The BRSA plans to continue defending in
court the merits of its take-over of Pamuk, though given this
interim court decision to suspend its action, the final
outcome doesn't look favorable to BRSA.
-- Since its take-over of Pamuk, BRSA has injected cash and
T-bills of about $2 billion into Pamuk (about TL 2.7
quadrillion in bills and TL 800 trillion in cash). Local
media have publicized this injection of public funds, and
question whether Cukurova Holding will repay the BRSA.
Cukurova, according to press sources, plans to counter-claim
against the BRSA for damages, claiming that the BRSA's
take-over damaged the bank (the bank has lost over $1.5
billion in deposits since the BRSA's June declaration of
insolvency and take-over).
-- BRSA staff, and financial market analysts, expect that
Cukurova Holding will be unable to sufficiently recapitalize
Pamuk, and that this insolvent bank will eventually revert to
the BRSA. Cukurova's legal challenge is seen as part of the
bargaining process with the BRSA over the repayment terms for
Cukurova's outstanding loans to both Pamuk and Yapi (totaling
nearly $5 billion). Thus, while Cukurova may eventually be
forced to give up Pamuk, it may be able to bargain down with
the BRSA the amount of debt it owes its banks.
¶3. (C) Pamuk's and Yapi Kredi's $5 billion in loans to owner
Cukurova Holding lie at the heart of the problem. The
Pamuk/Yapi Kredi merger plan, presented last June by
Cukurova, involved large-scale forgiveness of these loans.
The BRSA rejected this plan. Cukurova's subsequent failure
to make payments to these banks is gradually leading to the
insolvency of Yapi Kredi Bank. In June, after the triple
audit under the recap plan, Yapi Kredi had positive equity of
about TL one quadrillion ($600 million), barely meeting the 8
percent capital adequacy standard. But its third quarter
results, to be released November 29, will show further
losses, bringing it under the 8 percent standard.
Furthermore, in light of Cukurova's continued failure to pay,
the BRSA should apply prudential standards that require Yapi
Kredi to increase its provisioning of capital for these
loans. The general concern in the markets and in BRSA is
that, without an agreement with Cukurova over repaying the
loans, Yapi Kredi could well be insolvent by year-end.
¶4. (C) Yapi Kredi treasurer Huseyin Imece told us November
25 that the banks' international creditors are worried, but
no one has cut credit lines to the bank yet. Yapi Kredi will
repay a $225 million syndication loan to international banks
in early December. The Turkish man in the street does not
appear worried as yet, and there is no run to withdraw
deposits. But Imece doesn't know if the situation can hold
until year-end.
Comment
-------
¶5. (C) The outcome of BRSA's legal battle with Cukurova
Holding (and its owner Mehmet Emin Karamehmet) poses systemic
risks to the financial system. First, if the BRSA's
take-over of Pamuk is rolled back, the credibility of the
newly created BRSA as an effective bank regulator is in
question. Second, Yapi Kredi and Pamuk together account for
$12 billion in deposits or 15 percent of all deposits in
Turkish banks. Yapi Kredi holds billions of dollars of
T-bills as assets. Giving Cukurova Holding back the banks,
without effectively recapitalizing them, leaves two large
sick players in the system relying most probably on overnight
funding from other local banks and/or the Central Bank.
Banks' failures to make payments in the overnight market was
the proximate cause of both the November 2000 and February
2001 financial crises.
¶6. (C) The IMF's Deppler will arrive in Turkey next Monday,
December 2, to begin discussions with the new GOT. Market
participants await IMF reaction to two issues: this banking
reform problem; and the GOT's commitment to maintaining a 6.5
percent primary surplus in 2003. Per IMF resrep, IMF Deputy
Managing Director Krueger raised the Pamuk issue with State
Minister Babacan in a bilateral in New Delhi November 23l;
her talking point was that this is an urgent priority for the
GOT to fix. In the meantime, locals markets remain
optimistic, based primarily on Turkey's chances of getting an
EU accession talks date in Copenhagen. As JP Morgan/Chase
Treasurer told us, "my horizon is one week, and this week is
still optimistic. Not sure about next week."
PEARSON