Istanbul’s secular mayor knocking on European doors for funding

Istanbul Mayor Ekrem Imamoglu speaks after being awarded with the German-Turkish Friendship Award 'Kybele 2019' in Berlin, on Nov. 8. (Reuters)
Updated 26 November 2019

Istanbul’s secular mayor knocking on European doors for funding

  • Imamoglu announced on Sunday that Turkey’s state-run banks are reluctant to lend routine loans to the municipality

ANKARA: The secret behind the latest wave of European visits made by Istanbul’s Mayor Ekrem Imamoglu has finally been revealed: To ask for international funding for the urban projects of the metropolitan municipality.

Imamoglu announced on Sunday that Turkey’s state-run banks are reluctant to lend routine loans to the municipality — even for paying salaries — and that this has led him to ask European countries for funding.

He added that the municipality is now working on a plan to sell Eurobonds to finance its projects in Istanbul, home to one-fifth of Turkey’s 82 million citizens.

“The state banks seem to have shut the doors on us,” he said. “I condemn the officials’ attitude.”

However, even if it is endorsed by the city council, he would likely need the approval from the Treasury and Finance Ministry — controlled by Turkish President Recep Tayyip Erdogan’s son-in-law Berat Albayrak — to issue Eurobonds worth $500 million.

During local elections in June, Imamoglu, of the secular main opposition Republican People’s Party, took the reins from Erdogan’s AKP which, along with its Islamist predecessors, has run the city for the last 25 years.

He also inherited a significant amount of debt and wasteful spending from the previous administration of the city, with a budget of 20 billion lira ($3.4 billion) and a debt of 26 billion lira, which obliged him to search for resources to pay it.

The municipality rounded up and parked hundreds of cars hired for official use by the previous administration to display the squandering of public money.

Karol Wasilewski, an analyst at the Warsaw-based Polish Institute of International Affairs, said that this is a politically risky strategy since Imamoglu may easily get hit by Erdogan who would criticize him using nationalist discourse.

Erdogan has always taken pride in ending Turkey’s dependence on the International Monetary Fund in 2013 after paying its last loan installment.

According to Wasilewski, the Turkish president could capitalize on the nationalistic feelings of the people by saying that Imamoglu would do exactly the opposite after the latter met with various global creditors and bankers in London.

“However, Imamoglu not only proved that he is a politician willing to accept the risk, but also made his bones as a person fighting the oppression of the government. If he succeeds in bringing further investments to Istanbul and in improving standards of living, his stance in Turkish politics will be even stronger,” he told Arab News.

Although Imamoglu, 49, has dismissed claims that he is interested in a presidential bid, his victories on the local front, his popular appeal and inclusive profile as a practicing Muslim elected from a secularist party have led many to think that he could challenge the president, who also once served as Istanbul mayor.

Imamoglu has paid working visits to Paris, Berlin and London in recent months.

Following these visits, Istanbul has secured €110 million ($121 million) of financing from Deutsche Bank for an underground transport project on the Asian side of the city. The construction will begin on Nov. 26.

Nezih Onur Kuru, a political analyst and a doctoral researcher on political psychology from Istanbul’s Koc University, thinks the debates on Imamoglu’s meetings with European investors is an indicator of the recent tension between the central and local governments.

“The government has targeted Imamoglu as a potential presidential candidate after his 9-point lead victory in the June 23 elections,” he told Arab News.

Kuru added that seeking investments strengthens Imamoglu’s image as a governor who defies the central government for public interest and consolidates his support base.

During Imamoglu’s European tour, the French Development Agency also signed an €86 million loan agreement with Istanbul for an underground metro line.

So far, the city has secured financing from Societe Generale, Black Sea Trade and Development Bank and the European Bank for Reconstruction and Development.


Soleimani’s successor faces same fate if he kills Americans Iran warned

Updated 15 min 23 sec ago

Soleimani’s successor faces same fate if he kills Americans Iran warned

  • Ghaani promised to “continue in this luminous path” taken by Soleimani

DUBAI: The US special representative for Iran said the successor to Qassem Soleimani, who was killed in a US drone strike, would suffer the same fate if he followed a similar path of killing Americans, Asharq Al-Awsat newspaper reported.

Washington blamed Soleimani for masterminding attacks by Iran-aligned militias against US forces in the region. US President Donald Trump ordered the Jan. 3 drone strike in Iraq after a build up of tension over Iran’s nuclear program.

Iran responded to the killing of Soleimani, who was charged with expanding Tehran’s influence across the Middle East, by launching missile strikes on US targets in Iraq, although no US soldiers were killed.

After Soleimani’s death, Tehran swiftly appointed Esmail Ghaani as the new head of the Quds Force, an elite unit in the Revolutionary Guards that handles actions abroad. The new commander pledged to pursue Soleimani’s course.

“If (Esmail) Ghaani follows the same path of killing Americans then he will meet the same fate,” Brian Hook told the Arabic-language daily Asharq Al-Awsat.

He said in the interview in Davos that US President Donald Trump had long made it clear “that any attack on Americans or American interests would be met with a decisive response.”

“This isn’t a new threat. The president has always said that he will always respond decisively to protect American interests,” Hook said. “I think the Iranian regime understands now that they cannot attack America and get away with it.”

After his appointment, Ghaani promised to “continue in this luminous path” taken by Soleimani and said the goal was to drive US forces out of the region, which has long been Iran’s stated policy.

Tensions between Washington and Tehran have steadily increased since Trump withdrew from Iran’s nuclear deal with world powers in 2018 and imposed tough news sanctions that have hammered the Iranian economy.

This month’s military flare-up began in December when rockets fired at US bases in Iraq killed a US contractor. Washington blamed pro-Iran militia and launched air strikes that killed at least 25 fighters. After the militia surrounded the US embassy in Baghdad for two days, Trump ordered the drone strike on Soleimani.