Hunger for Turkey’s energy investments unlikely to ebb: IEA

ANKARA

The intensive appetite for energy investments with increased demand in Turkey is unlikely to be lost in the wake of the failed coup attempt on July 15, International Energy Agency (IEA) Executive Director Fatih Birol has said.      

Speaking to Anadolu Agency on the impacts of the attempt, Birol noted the steps taken by Turkey to repel long term risks have been positive.      

Turkey’s Central Bank said on July 17 that it would cut the commission on daily liquidity options for banks to zero as well as provide them with unlimited liquidity to maintain efficient functioning of the financial markets.

“It will be better if these steps are supported with market-friendly structural reforms,” Birol added.    
  
He said one of Turkey’s biggest objectives was to increase energy investments. “Two points need to be considered in energy investments. First, energy projects are long-term projects, and second the fundamentals regarding the energy sector in the country have to be taken into account,” he said.

He added that no change in Turkey’s fundamentals was evident from the point of view of investors, as the economy was experiencing what many countries consider an enviable growth rate.      

The International Monetary Fund (IMF) had revised Turkey’s 2016 growth forecast to 3.8 percent, from 3.2 percent, according to its World Economic Outlook report published in April. The IMF expected Turkey to grow by 3.4 percent in 2017.

“I think the appetite for energy investment is unlikely to be lost and the steps taken up to now are in place to increase this appetite,” Birol said.

Turkey declared a state of emergency for three months late on July 20 in response to the coup attempt.