Turkey : Corporate Sector Impact Assessment Report

World Bank

Washington, DC

关键词: ACCOUNTING;    AFFILIATES;    ASSET MANAGEMENT;    BANK LIABILITIES;    BANK RECAPITALIZATION;   

RP-ID  :  23153

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In February 2001, Turkey was hit by itsdeepest economic and financial crisis since World War II,prompting a severe decline in business activity. The adverseeffects of the crisis were felt throughout theeconomy-starting in the public sector, spreading to thefinancial sector, and, causing increasing distress in thereal sector. To restore growth and return companies toprofitability, Turkey urgently needs to implement acomprehensive corporate restructuring program. Moreover,simultaneous resolution efforts are needed in cases wherecorporate distress is creating distress for financialinstitutions. The report explores the significance and depthof the crisis, which includes an analysis of corporateperceptions of the crisis, and corporate distress. Severalfactors will limit the ability of Turkish financialinstitutions to resolve distress among corporate borrowers.Weak insolvency and foreclosure procedures may encourage arace to seize collateral, inhibiting orderly workouts ofnon-liquid but viable companies. Small, capital-weakenedbanks could be particularly nettlesome in corporate workoutnegotiations. Banks need to recognize that such workouts canreduce non-performing loans, and restore their clients'creditworthiness. In addition, the Banking Regulation andSupervision Agency needs to develop policies that encouragebanks to participate in voluntary workouts. Drawing onvarious models worldwide, recommendations suggest:resolution strategies to help banks and firms resolve their"mutual hostage'' dilemma; policy changes forthe Government to facilitate resolution and attract foreigndirect investment; and, financing measures to help firmsovercome the credit crunch. Recommendations are also splitbetween short-term measures, and medium-term measures -these medium-term measures are crucial because corporatedistress will likely continue well beyond the initialmacroeconomic recovery, while many of these measures, suchas facilitating foreign direct investment and improving themanagement and transparency of large corporate groups, willhave long-lasting effects.