World Bulletin / News Desk
The fourth annual conference of Istanbul Finance Summit (IFS), officially sponsored by Anadolu Agency, played host to leading representatives of global financial markets and senior executives from financial institutions.
IFS was held on 18-19 September at Istanbul's Ceylan Intercontinental Hotel.
The panel titled “Private Sector, Investment Banking and Risk Capital” was moderated by Cagatay Mustafa Culcuoglu, Deputy Director General of Anadolu Agency.
Speaking at the panel, Deutsche Bank Investment Banking Manager Mustafa Bagriacik said Turkey has now become more open to foreign investment after recent changes in tax legislation, while enjoying continued interest from investors abroad.
Bagriacik said that many markets around the globe have shrinking private sectors, and attributed the low figures of private capital in emerging markets to the capital increase in European banks.
Bagriacik noted that Russia is number one among emerging markets in terms of private capital.
“Turkey has a sensitive structure. This is the main concern. It is not easy to set up a sustainable stock market. I think it would take three or four years to attract a sufficient flow of funds.”
Bagriacik said Turkey has nevertheless made a significant progress in this regard over the last decade. “We observe efforts at Eurobond and highly efficient marketing services in particular, but we must take note of rising risks in emerging markets.”
He maintained that Turkish banks check themselves regularly and continue to interact with Eurobond markets.
“New practices are implemented very fast now, and this is good news. It means the Turkish private sector will soon get better.
“A fresh set of liquidity conditions will soon emerge. We have only seen part of the expected developments. We should be more prepared,” he said.
“We see a good market in Turkey.”
Another speaker at the panel, Suleyman Yilmaz, Director General of KOBI Venture Capital Investment Trust, said the recent stability and growth in Turkey contributed to a surge of activity in the field of venture capital.
He said his organization would continue to offer its backing to innovative projects, adding that the recent campaign of support that originated in the public sector would reach greater heights if it also receives funds from the private sector.
Is Private Equity CEO Murat Ozgen pointed to the fact that a competitive environment began to develop in Turkey against the background of the inflation rate falling below 10% and the start of foreign capital flow into the country
Cagatay Mustafa Culcuoglu, Deputy Director General of Anadolu Agency, said in his remarks that the year 2013 had so far been one of stagnation for private capital, investment banking and risk capital.
“The reason is a new crop of macro shocks, with the Eurozone crisis, resulting in the continuation of financial negotiations and a rising aversion to risk on the part of business owners.
“We don’t know if this trend goes on in private capital, investment banking and risk capital, but we need sustainable growth in all three areas,” he said.
Managing Partner of Tungsten Capital, Leonid Simon Vindman, said: “Turkey is a rapidly growing economy. I see opportunities for Turkey in IT, real estate and construction sectors.”
Ulf Petterson, Director of Development and Construction at US investment managing firm Amstar Global Partners, said Turkey’s real estate sector looks promising and investors are eager to explore the country.
“We see a good market in Turkey and we want more investments coming in.”
Following the panel, Deputy Prime Minister Bulent Arinc presented plaques to the speakers.
The summit that brought together foremost representatives of the global financial landscape ended with the closing remarks of Deputy Prime Minister Bulent Arinc.