ICBC beefs up financial cooperation with Turkey

Industrial and Commercial Bank of China (ICBC) is continuing financial cooperation with Turkey as the latter has experienced a currency crisis because of external pressure from the US.

Chen Fengying, a research fellow at the China Institute of Contemporary International Relations, said that China’s economic cooperation with Turkey, which is also an emerging economy like China and has had relatively strong economic growth in recent years, should continue despite temporary difficulties faced by Turkey.

Turkey just secured a $3.6 billion loan package from Stateowned ICBC, according to a report by the Turkey-based Daily Sabah on July 26, citing Turkey's Treasury and Finance Minister Berat Albayrak.

The money will be used for energy as well as transportation investment in Turkey, the report noted.

ICBC has also been authorized to refinance a $2.7 billion loan for two Turkish infrastructure projects – a bridge and a highway project – according to a Daily Sabah report on July 29.

The media also pointed out that ICBC Turkey is the first Chinese bank to operate in Turkey by acquiring a majority share of a local bank back in May 2015.

ICBC had signed a deal with a Turkish bank to provide a threeyear $250 million loan for the latter to support Turkey’s infrastructure and trade, according to a Xinhua News Agency report on March 8.

Chen said that such cooperation

is “normal” in ICBC's efforts to expand its international business.

“But I don’t think it should be interpreted as China’s efforts to intervene or bail out Turkey,” Chen told the Global Times on Sunday, noting that China will maintain its economic relations with Turkey but countries must solve their economic problems via their own efforts.

Lu Kang, spokesperson of the Ministry of Foreign Affairs, said at a press briefing on Friday that China has always attached importance to economic, trade and financial cooperation between China and Turk ernment supports enterprises

from Turkey and China to sign relevant cooperation projects according to market rules, according to a statement on the ministry’s website.

Both China and Turkey are currently facing external pressure from the US, which has raised import tariffs on both countries’ products.

The Turkish lira has plunged sharply under US pressure.

Lu also noted that China believes Turkey has the abilities to overcome temporary economic difficulties and hopes that disputes can be dissolved via talks, according to the statement.