[PEN-L:36298] Re: Turkey's Dangerous Game

[Michael Pollak <mpollak@xxxxxxxxx>]

Excellent piece.  I have a couple of questions though about this famous
deal that Turkey missed out on.  It is generally abbreviated as 24bn in
grants and loans.  But if I understand correctly, it actually boiled down
to 2bn dollars earmarked for the military -- i.e., a subsidized purchase
for our own arms exporters; and $4bn in grants with the option to exchange
them for $24bn dollars in low cost loans -- when the last thing poor
Turkey, with it's $100bn debt needs is more loans.  I'm not sure if
missing this package was such a disaster after all.

IIRC, Turkey does have a $5bn financing gap they have to meet this year.
But Bush's request for $74bn of war related financing includes $8.5bn in
loans and loan guarantees (essentially subsidized loans) for Turkey.  So
essentially it seems like they going to need exactly what they need
financially, and not what they don't.

Michael