Ipragaz, Turkey’s leading liquid petroleum gas company, will not change its investment strategy and will continue operations as planned in Turkey despite the recent coup attempt, Selim Siper, Ipragaz CEO, said Monday.
Siper expressed his condolences for those who died in the failed coup which took place on Friday July, 15, and stressed the event will not damage Ipragaz’s investment plans in the country which will continue unabated.
“Turkey will continue to be an attractive country for international capital with its demographic structure and strong development potential,” Siper said.
The Organization for Economic Cooperation and Development (OECD) said in its June 2016 report that Turkey’s
GDP growth is projected to remain close to 4 percent per annum in 2016 and 2017.
“A sharp hike in the minimum wage and social transfers in early 2016 will boost private consumption,” OECD said.
GDP increased by 4.8 percent in the first quarter of 2016 compared to the same period last year, making Turkey one of the fastest growing economies in Europe and among OECD members.
He added that the upshot of Friday’s events will be in the short-term, while plans for Turkey’s economic path, including investments, are designed for the long term.
“As we see the coup attempt as a short-term crisis, we believe investments in Turkey will continue. But if an investor considers withdrawing investments due to this event, we don’t see them as real investors,” Siper noted.
Turkish people swarmed the streets on the night of July, 15 in response to President Recep Tayyip Erdogan’s call to defend against the coup plot by the Gulenist Terrorist Organization, or the Parallel State.
At least 240 people, including members of the security forces and civilians, were martyred during the failed putsch, and nearly 1,500 others were wounded in the ensuing protests.
Since then, supporters have reacted to the coup plot by taking to the streets to show their solidarity to the country.
Siper stressed that Ipragaz does not foresee any differences to its operations which will continue as planned.
– Credit revisions are political
The CEO also commented on the international rating agency S&P’s decision to downgrade Turkey’s credit rating from “BB+” to “BB” on Wednesday with a negative outlook following Friday’s failed putsch. .
He claimed that the revision was a somewhat political and impulsive reaction.
“Because when you compare Turkey today and one week ago, there has not been any big change in Turkey’s economic dynamics and for this reason, I think the decision is emotional and unjust,” he said.
Turkey’s annual growth was projected to be 3.4 percent in 2016, compared to the four percent seen in 2015, according to S&P, which affirmed Turkey’s rating at “BB+” and revised up its outlook to stable from negative on May 6.
In May, the rating agency emphasized the upward revision with a statement that said: “The Turkish economy was resilient to the challenges posed by the busy electoral calendar in 2015, the end of the peace process with Kurdish militants, heightened regional instability and weak investor sentiment toward emerging markets.
Ipragaz is a leading LPG company in Turkey which was established in 1961.
Since 1999 Siper has been CEO of the company, which now has over 1,000 employees and 3,000 dealers in Turkey.