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.


Hundreds protest police repression in Tunisia

Updated 23 January 2021

Hundreds protest police repression in Tunisia

  • Saturday’s protests come as the North African nation struggles to stem the novel coronavirus pandemic
  • The government on Saturday extended a night-time curfew from 8 p.m. (1900 GMT) to 5 a.m. and banned gatherings until February 14

TUNIS: Hundreds of demonstrators took to the streets of Tunisian cities on Saturday to protest police repression, corruption and poverty, following several nights of unrest marked by clashes and arrests.
Saturday’s protests come as the North African nation struggles to stem the novel coronavirus pandemic, which has crippled the economy and threatened to overwhelm hospitals.
Over 6,000 people have died from Covid-19 in Tunisia, with a record 103 deaths reported on Thursday.
The government on Saturday extended a night-time curfew from 8 p.m. (1900 GMT) to 5 a.m. and banned gatherings until February 14.
But protesters took to the streets in several parts of the country, including the capital Tunis and the marginalized interior region of Gafsa, to demand the release of hundreds of young people detained during several nights of unrest since January 14.
“Neither police nor Islamists, the people want revolution,” chanted demonstrators in a crowd of several hundred in Tunis, where one person was wounded in brief clashes amid a heavy police presence.
Protests were also held in the coastal city of Sfax on Friday.
Much of the unrest has been in working class neighborhoods, where anger is boiling over soaring unemployment and a political class accused of having failed to deliver good governance, a decade after the 2011 revolution that toppled long-time dictator Zine El Abidine Ben Ali.
Economic misery exacerbated by novel coronavirus restrictions in the tourism-reliant nation have pushed growing numbers of Tunisians to try to leave the country.
“The situation is catastrophic,” said Omar Jawadi, 33, a hotel sales manager, who has been paid only half his salary for months.
“The politicians are corrupt, we want to change the government and the system.”
The police have said more than 700 people were arrested over several nights of unrest earlier this week that saw young people hurl rocks and petrol bombs at security forces, who responded with tear gas and water cannon.
Human rights groups on Thursday said at least 1,000 people had been detained.
“Youth live from day to day, we no longer have hope, neither to work nor to study — and they call us troublemakers!” said call center worker Amine, who has a degree in aerospace engineering.
“We must listen to young people, not send police in by the thousands. The whole system is corrupt, a few families and their supporters control Tunisia’s wealth.”
Tunisia last week marked one decade since Ben Ali fled the country amid mass protests, ending 23 years in power.
Tunisia’s political leadership is divided, with Prime Minister Hichem Mechichi waiting for parliament to confirm a major cabinet reshuffle announced last Saturday.