"Business in Turkey
Mixed signals
Mar 6th 2008 | ISTANBUL
From The Economist print edition
A bad time to scare off foreign investors
WHEN Greece's second-largest lender, Alpha Bank, sealed an agreement in 2006 to buy a 50% stake in a small Turkish bank, it fully expected Turkey's authorities to bless the deal. Alpha's bigger rival, the National Bank of Greece, had itself just bought a Turkish bank, which suggested that Turkey's historical enmity with its western neighbour was not going to stand in the way. But last year regulators said “no” without explaining why. One theory, advanced in the Turkish media, is that the rejection was because of national security, since one of Alpha's board members was a former chief of Greece's national intelligence service. Another possibility is that with around 40% of Turkish banks and 70% of the stockmarket in foreign hands, there is growing resentment towards anyone from abroad."
More:Business in Turkey | Mixed signals | Economist.com
