Author Topic: So... how safe is your money in Turkey?  (Read 17434 times)

0 Members and 1 Guest are viewing this topic.

Offline mercury

  • Turkey
  • Prolific Member
  • *****
  • Posts: 5081
  • Age: 70
  • Location: England
Re: So... how safe is your money in Turkey?
« Reply #20 on: February 04, 2017, 13:49:26 PM »
The problem will start Davey if Reg eventually gets his own way and reduces the interest rates.. It is his prime target and never stops banging on about it..



Offline Karennina

  • Prolific Member
  • *****
  • Posts: 4590
  • Location: United Kingdom
Re: So... how safe is your money in Turkey?
« Reply #21 on: February 05, 2017, 08:19:40 AM »
I know that I am a thickey twitty re not understanding all of this about the tl I have just read the links posted by John F and stll dont get it could someone simplfy for this tt please what this downgrading means, I am getting a tad concerned about the tl we have in our bank account...many thanks as always for any advice   :)

Offline yabanci

  • Sr. Member
  • ****
  • Posts: 1829
  • Location: Turkey
Re: So... how safe is your money in Turkey?
« Reply #22 on: February 05, 2017, 08:42:44 AM »
Found this on the internet.

Who are the credit rating agencies and what did they just do?

There are three primary national credit rating agencies:  Fitch, Moody’s Investors Service (“Moody’s”), and Standard and Poor’s (“S&P”). These agencies rate the creditworthiness of governments, companies and individual securities, allowing investors to better understand the risk of their investments. The higher the rating, the more creditworthy — or, alternatively, the less risky — the investment.

Offline Colwyn

  • Prolific Member
  • *****
  • Posts: 6412
  • Location: Bristol
Re: So... how safe is your money in Turkey?
« Reply #23 on: February 05, 2017, 10:15:42 AM »
could someone simpllfy for this tt please what this downgrading means
There are two issues to consider: what are the chances of my bank going bust; and what happens to my money if it does. On the first question the three ratings agencies agree that Turkish banks are risky and getting riskier. This is just advice to investors that they may act upon or ignore as the they see fit. As to the second question JohnF is pointing to weaknesses in the arrangements for protecting depositors' savings. We have been through this in the UK in 2007 and 2008. People may have forgotten (I hope I am remembering correctly) that when the banking crisis hit the UK there was quite limited protection for our savings. Only the first £2000 was 100% covered and a further £33,000 was 90% covered. This meant that the maximum payout for people with their life savings in a single bank account would have been £31,700 no matter how much they had in the bank. So if you had a £100,000 retirement pot ... tough, you've now got only £31,700. That was before the much reviled Gordon Brown stepped in to raise the protection to £50,000 at 100%. So UK Gov bailed out British savers. Will the Turkish Gov do the same, do you think?

For those banking in the UK the amount of protection is now £85,000 (it went up on 30 Jan 2017) so, to be safe, don't have more than that with any one bank.

Offline Karennina

  • Prolific Member
  • *****
  • Posts: 4590
  • Location: United Kingdom
Re: So... how safe is your money in Turkey?
« Reply #24 on: February 05, 2017, 11:32:07 AM »
Thank you both for replies I get it now! That is interesting to know the Uk has gone back up to 85k i did not realise as it went down to 75 last January or may even have been the year before...we do have quite a bit of money in a Turkish account we invested it before all the madness re a lot of things Turkish went crazy, it was for our retirement ( hopefully this May for hubby) so that we could kind of live off the interest when we spend long periods out there, we worked out if we were careful and didnt live a holiday lifestyle it would pay towards our Turkey time, im in a bit of a dilemma now as to what to do....

Offline Colwyn

  • Prolific Member
  • *****
  • Posts: 6412
  • Location: Bristol
Re: So... how safe is your money in Turkey?
« Reply #25 on: February 05, 2017, 12:10:08 PM »
im in a bit of a dilemma now as to what to do....
Have you considered Stocks & Shares ISAs?

Offline JohnF

  • Administrator
  • Prolific Member
  • *****
  • Posts: 4322
Re: So... how safe is your money in Turkey?
« Reply #26 on: February 05, 2017, 12:33:12 PM »
Well put Colwyn (your explanation of ratings).

In a nutshell, the ratings agencies are saying that the current financial issues affecting the economy as a whole are now affecting the banks and from an investment perspective, its becoming riskier.  Its worth remembering though, that this is from an investment perspective, not day to day usage for savings and current accounts.

That said, there's always been an element of risk investing in Turkey, even for the man in the street - thinking back a few years I can remember when thirty odd percent was available at most banks, and for a good while rates were in the mid twenties.  Returns like that do not come without an element of risk else everybody would have been chucking their money into lira at the time. 

Take it back a bit further and my OH could get in the region of eighty percent on her account if she'd wanted to - only problem there was that inflation was hitting one hundred odd percent!

The early days of the AKP at least brought a certain level of financial stability that gradually brought rates down and investment started flooding into Turkey.  Most of the big money deals the law firm I work for did during the mid to late 2000's and the early part of this decade were from foreign investors.  Fast forward to 2017 and a lot of the tier one law firms are shedding staff...

we do have quite a bit of money in a Turkish account we invested it before all the madness re a lot of things Turkish went crazy...
...im in a bit of a dilemma now as to what to do

Not a nice dilemma unfortunately and the only person who can decide is you - what I would say though, is to make sure your money is spread about over different banks.  The maximum payout under the TMSF scheme is 100,000tl per person, per institution.  £22,000 or thereabouts.

One thing I did read recently, in respect of the TMSF, is that all the seized businesses ($9 billion worth) are now under the control of the TMSF.  That makes a handy wee cash buffer for the time being...

JF


Offline Colwyn

  • Prolific Member
  • *****
  • Posts: 6412
  • Location: Bristol
Re: So... how safe is your money in Turkey?
« Reply #27 on: February 05, 2017, 12:59:51 PM »
And in a nice touch of irony the deputy head of TMSF, the organization that runs seized Gulenist companies, was himself sacked in January as a suspected Gulenist.

Offline Karennina

  • Prolific Member
  • *****
  • Posts: 4590
  • Location: United Kingdom
Re: So... how safe is your money in Turkey?
« Reply #28 on: February 05, 2017, 17:48:55 PM »
Do you mean stocks and shares ISAS in Turkey or Uk Colwyn? We do have an isa each in uk.
Thank you for very much Colwyn and John H for the posts I really appreciate it ha we dont have 100.000tl not that much sadly lol but that has reassurred me a lot if worst case scenario their were probs with banks we should be ok! I think for now im gonna stick with it in tl as we would lose out a lot if we were to change it back to sterling and hopefully from May we will be spending more time in Turkey so it will be getting used!   :) wow 80% seems unbelivable we met folk in our early days of going to Turkey who had gotten 30% and said this enabled them to live a very nice life style...

Offline davybill

  • Sr. Member
  • ****
  • Posts: 1865
  • Location: Turkey
Re: So... how safe is your money in Turkey?
« Reply #29 on: February 05, 2017, 18:58:54 PM »
What do ISAS and the stock markets guarantee  you in the UK?Colwyn.




Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf