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Tough times ahead for Turkey's economy

Warned about their mounting foreign debts, Turkish companies are having problems finding external financing.
A Turkish flag flies at the HSBC headquarters in Istanbul, Turkey, June 9, 2015. HSBC will shed almost 50,000 jobs and take an ax to its investment bank, cutting the assets of Europe's biggest lender by a quarter in a bid to simplify and improve its sluggish performance. The bank said on Tuesday about half the staff cuts will come from the sale of businesses in Brazil and Turkey. REUTERS/Murad Sezer  - RTX1FRE5
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The election platforms of Turkey's political parties preparing for snap elections on Nov. 1 are overloaded with economic promises. The contest of who can provide the most enticing offers to the unemployed, the youth, retirees, workers, women, farmers and small enterprises raises the question of how it will all be financed. The Turkish economy runs on credits and debts, and millions of people cannot pay their debit and credit card debts.

Even more critical is the mounting debts of banks and private companies. Recent figures released by the Turkish Central Bank reveal difficult times for banks and the private sector in paying back their short-term debts.

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