One of the largest financial institutions in the world is to squeeze its loans to Turkey this year due to tensions between the European Union and Ankara for its controversial oil and gas drilling operations in waters off Cyprus.
The European Investment Bank (EIB), the lending arm of the EU, has announced it will restrict loans to Turkey which over the last decade have amounted to around €19 billion ($20.94 billion).
The EIB is one of the biggest sources of funding for Turkish infrastructure projects but has now said it will stop lending to the country’s public agencies while adopting a selective approach to the private sector in Turkey.
Brussels is against any oil and gas exploration in the territory that belongs to the exclusive economic zone of Cyprus, under EU member state. However, Ankara states that Turkish drilling vessels are operating within the continental shelf of Turkey.
The EU felt compelled to take countermeasures against Turkey after ignoring demands not to send a new drilling vessel to the Eastern Mediterranean, and its foreign affairs commissioner, Josep Borrell, said recently that Brussels was preparing to impose sanctions.
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03 April, 2020