Bank issues warning to foreign companies with ship building contracts in Turkey

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“We haven’t noticed any of these issues,” said Director of Business Development at the Turkish Shipyard Tersan Shipyard.

European banks will not provide guarantees for prepayment to Turkish yards due to political and economic turmoil in Turkey, according to the bank, Nordea.

Early in August, another dip in the Turkish lira sent tremors through global markets heightening fears that President Recep Tayyip Erdoğan’s government isn’t handling its own free-falling currency.

Furthermore the US administration’s threats to issue economic sanctions against Turkey were issued, with President Trump announcing that he would double US import tariffs on Turkish steel and aluminium.

“We recommend our customers to wait on Turkey,” said Mads Erik Eriksson to Nett.no, who works in the Nordea’s international trade department.

Director of Business Development in Tersan Shipyard, Saker Erdogan, said he couldn’t see anything wrong. According to Mr Erdogan, only recently a customer got a guarantee, so the yard can start its building contracts.

“We have a large amount of projects under construction for customers in Norway. We haven’t noticed any of these issues,” said Mr Erdogan. He also said that he believed the turmoil in the country was only short term.

The ship yard has 15 ships under construction – eleven of these are from Norway.