CHP congress in Istanbul cancelled, Turkey's credit risk premium rises

The cancellation of the CHP Istanbul Provincial Congress has caused sudden movements in financial markets. Following a lawsuit filed for the cancellation of the congress held in Istanbul on October 8, 2023, the court decided to remove Özgür Çelik and the current administration from office. Following this development, Gürsel Tekin was appointed as the trustee to the Istanbul Provincial Presidency.

The new administration consists of Gürsel Tekin, as well as Zeki Şen, Hasan Babacan, Müjdat Gürbüz, and Erkan Narsap. These changes created uncertainty in the markets, leading to a rapid loss of value in the Borsa Istanbul BIST 100 index. Although the index started the day at 11,304 points, it fell to 10,747 points, a decline of 5.37 percent. Losses exceeding 8 percent were also experienced in the banking index.

Following the political developments, Turkey's 5-year credit risk premium (CDS) increased by 8 basis points to 272.6. This increase indicates that uncertainty and risk perception in the markets have risen.