Israel Matzav

Israel's exports to Turkey down 40%, Turkeys bad debts up 90%

Israel Credit Insurance Company, which insures payment on some $12 billion per year in Israeli exports, reported on Wednesday that exports to Turkey dropped by 40% during the first nine months of 2009, while debt payments in arrears by Turkish companies rose by 90% in the same period.

Israeli exports to Turkey totaled $800 million in the first nine months of this year, down 40% from $1.3 billion in the same period last year, ICIC reported. The drop in Israeli exports to Turkey was nearly double the rate of decline in total Israeli exports, which were down 22% in the January-September period, it said. Metals, chemicals and plastics accounted for most of the decline in exports to Turkey, it added.

A drastic deterioration in late debt payments by Turkish customers to Israeli exporters also took place, ICIC reported. The volume of debt-payment arrears by Turkish companies rose by 90% in the January-September period, and total debt owed to Israeli exporters stands at $40m., it said. The volume of the rise in debt arrears encompassed all sectors that export to Turkey, it added.

Debt-payment arrears occur when payments are not made more than 30 days after the credit conditions agreed upon between Israeli exporters and their customers, ICIC said.

Coincidence? I don't think so. It sounds to me like the Turks have decided not to pay their debts.

posted by Carl in Jerusalem @ 5:47 PM