Qatar ready to provide up to $10 billion in funding to Turkey: sources

Ankara, Turkey – Qatar is due to provide Turkey up to $10 billion in funding, including up to $3 billion by the end of this year, Reuters reported quoting senior Turkish officials. 

Turkish and Qatari official are in the final stages of talks to work out the modalities of extending the funding. 

The funding could take the form of a swap, eurobond or other method. 

It could help shore up the country’s forex reserves to support Erdogan’s unorthodox policy of cutting interest rates and other stimulus measures despite rising inflation and a plunging lira. Turkey is in dire economic straits which has dissuaded western countries from investing in the country.

The Turkish central bank already had a swap agreement with Qatar’s central bank that was originally worth $5 billion but was tripled to $15 billion by 2020.

Turkey is already in talks with Saudi Arabia on Riyadh placing a $5 billion deposit at the Turkish Central Bank, a Saudi finance ministry spokesman said on Tuesday.