Hurriyet Daily reported that the uprising in Arab countries keep on hitting Turkish construction businesses there.
Some 370 projects in Libya are under risk, latest figures said that nearly USD 100 million of cash owned by Turkish businesses are being held in Libya banks. Nearly USD 100 million of cash owned by Turkish businesses are being held in Libya banks.
The ongoing Arab Spring in the Middle East and North Africa means a winter-like summer for the Turkish construction businesses in the region.
According to a recent Construction Sector Analysis by the Turkish Contractors Association, the turmoil in Libya which has already evolved in to a civil war is threatening some USD 18.4 billion worth of projects by Turkish builders in the country.
The amount of allowance payments these companies have been unable to deposit has already hit USD 1.6 billion. Nearly USD 100 million of cash owned by Turkish businesses are being held in Libya banks. The machinery and equipment of companies that have already returned to Turkey adds to the current losses.
Noting that Turkish contractors undertook nearly 6,000 projects in 90 countries across the world, totaling a business volume of USD 190 billion between 1972 and 2010, Libya had a great share in this sum. Within the given period, Turkish companies materialized 529 projects worth USD 27 billion in Libya.
Contractors said that the losses caused by the crisis in this crucial country are not likely to be compensated in the short run. The competition conditions in post-turmoil Libya would also not be similar to those before the uprising that started in early 2010. All these elements have forced constructors to search for alternative markets and political risks insurance is a must for the sector.
Turk Eximbank and the TMB should coordinate in finding solutions to these problems. In finding alternative markets, the inner regions of Africa look prominent. It would be quite effective if Eximbank re launches country credits, a practice that generated good results in the past.
( Source: www.steelguru.com )