The relations between Turkey and the US are not going down a good path but the economic difficulties this causes for Turkey will not bring the country to a collapse and should not have a negative effect on Bosnia, professor at Sarajevo’s Economy Faculty, Kemal Kozaric, told N1.

Turkey has no International Monetary Fund (IMF) debt but the country does owe USD 340 million to European commercial banks, he said.  

“Recep Tayyip Erdogan, Turkey’s President, has fulfilled the country’s obligations toward the IMF after he became Prime Minister in 2002,” he said, explaining that Turkey turned to Asian markets at the height of the economic crisis in 2008, which made the current geopolitical position of the country possible.  

This showed that Turkey is able to respond to new circumstances, he said.  

“That is why I don’t think there will be a collapse in Turkey. Turkey is not Greece,” he said.  

The arrest of US preacher Andrew Brunson, who Turkey accuses of terrorism, is not the only reason for the tense relations between the country and he US, Kozaric said, adding that he thinks this is a way in which US President Donald Trump is trying to confront Russia and Iran.  

“After Turkey raised its customs, the goods being imported in the country will be much more expensive. Especially in regard to energy, and we know that Russia and Iran are important partners to Turkey in that regard,” he said.  

Kozaric called the political actions of the Trump administration toward Turkey an attempt to discipline Erdogan, but said this was not a good move, as it will not help with the tense relations between the two countries.  

He praised the measures of Turkey’s Central Bank and added that the Lira’s fall in value will make Turkish products and visits to the country cheaper.  

The economy expert stressed the importance of the Central Bank’s independence as he spoke about the Erdogan’s criticism of the institution.  

“It is obvious that the fiscal policy was out of control. It is obvious that a lot of money was being printed,” he said.  

“There is an estimate saying that in Turkey there are ten million iPhones worth about seven billion USD. Erdogan called upon the citizens to buy Samsung devices or devices made by Turkish producers. But, you cannot prevent people from buying products they want,” Kozaric said.  

Erdogan has, according to Kozaric, used populism to get his citizens to show economic patriotism in a difficult time.