Author Topic: So... how safe is your money in Turkey?  (Read 17432 times)

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Offline JohnF

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So... how safe is your money in Turkey?
« on: January 25, 2017, 02:18:01 AM »
I kinda swithered about this post - mainly because I'd hate to be considered as a scaremonger but thought hey ho - its my personal opinion so take heed or not.  Your choice.

Over the past couple of months almost everyone I know in Istanbul has either spread their cash deposits over several banks or removed it from Turkey completely.  I'm talking about lira accounts, not hard currencies.  On the basis that the clever feckers all seemed to be getting their dosh out of Turkey, I got a bit curious about the bank guarantees within Turkey - so did a wee bit of research to see how your money was actually protected.

The TMSF (the folks who guarantee your money) was established in 1933 and over the years the initial guidelines have been altered to take into account prevailing conditions in respect of deposits, interest rates and the overall financial situation in Turkey.  I've been trying recently to get an approximate figure for funds currently on deposit (in lira), i.e. the TMSF's exposure in the event of a major currency crisis and failed miserably.  However, what I did find out is that the TMSF actually operate an insurance scheme, not a solid guarantee like the Bank of England, in respect of your funds held by banks etc.  If things did go tits up, what you'll actually get back is potentially a proportion of your funds that the TMSF can meet, and as for the balance, all you will be is a preferential creditor.

Kinda reminds me of D.A.S.K.     :)

Eventually I had a conversation with someone who knows how the scheme works, and they conceded that if the sh1t really did hit the fan then the resources available to the TMSF could be stretched.   

Scary or what.

On the basis that I have 716.33TL left in my Finans account, and my OH has about 2,000TL left in her Garanti account - personally, our exposure amounts to virtually zero.  I made the call to get our assets out of Turkey about four years ago, and fortunately a few on here believed me when I said get out of lira at that time (beer still on account    ;) ).  I'm no expert, but if I has substantial funds on deposit in Turkey I'd be having a serious financial review right now.

JF
(your regular forum doom-sayer)

EDIT: changed the bit about TMSF resources as it was speculation, not fact.



Offline kayakebab

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Re: So... how safe is your money in Turkey?
« Reply #1 on: January 25, 2017, 07:48:54 AM »
That is very scary.. Ive always felt protected as I assumed when they say you're protected to 100,000 then you really are and have spread money to be sure.
Do you have any inside info as to how much weaker the lira would go before collapse, or what else could cause collapse? 

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Offline davybill

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Re: So... how safe is your money in Turkey?
« Reply #2 on: January 25, 2017, 08:12:35 AM »
You a scaremonger John, nooo

Offline Colwyn

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Re: So... how safe is your money in Turkey?
« Reply #3 on: January 25, 2017, 09:09:59 AM »
Do you have any inside info as to how much weaker the lira would go before collapse,
Not inside information, but the Lira has dropped 24% since pre-coup and the Turkish Government is still fairly relaxed about it. For comparison, the Pound has lost nearly 16% since pre-referendum and the UK Government is equally relaxed.

Offline kayakebab

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Re: So... how safe is your money in Turkey?
« Reply #4 on: January 25, 2017, 09:21:01 AM »
ThanksColwyn..Trouble is will get zero interest in uk.
Turkey just bought 330m of arms from uk. Hopefully theyve got money left... :)   

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Offline Jacqui Harvey

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Re: So... how safe is your money in Turkey?
« Reply #5 on: January 25, 2017, 09:45:30 AM »
Phil has always worried about putting any larger amounts in our Turkey Bank Account. We keep it topped up to pay standing orders but would not commit a lot of money to it.  The interest is very good and we are always surprised at what we get for a relatively small amount. 

Offline stoop

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Re: So... how safe is your money in Turkey?
« Reply #6 on: January 25, 2017, 09:55:15 AM »
Do you have any inside info as to how much weaker the lira would go before collapse,
Not inside information, but the Lira has dropped 24% since pre-coup and the Turkish Government is still fairly relaxed about it. For comparison, the Pound has lost nearly 16% since pre-referendum and the UK Government is equally relaxed.

Not a good comparison as the Lira has been 'collapsing' for a good few years and its getting weaker and weaker (unlike the £).

Also the UK economy is in far better shape than the Turkish economy.

£ to hit 5tl this week? 4.80 last time I checked.


Offline incir

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Re: So... how safe is your money in Turkey?
« Reply #7 on: January 25, 2017, 09:56:30 AM »
Sound advice - thank you.

Offline sadler

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Re: So... how safe is your money in Turkey?
« Reply #8 on: January 25, 2017, 10:17:05 AM »
Can you see a time John F, when if properties are sold in lire, that the proceeds of sale could be at risk?

Offline Stopfordian

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Re: So... how safe is your money in Turkey?
« Reply #9 on: January 25, 2017, 11:02:36 AM »


 Sound advice and good post John. Myself and Jacqui have three accounts with different banks and similarly to Jacqui Harvey top up as and when needed, never much more than a couple of thousand lira in any of them. We also thought long and hard over many years about whether to buy or rent property and came down on the side of renting, mainly to lessen our exposure to market forces but also for the freedom to move easily from one resort to another if we got bored, which, as yet, we aren't   :)




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