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Money Talks from The Economist

Money talks: A coup de grâce for the Turkish economy?

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 19 July 2016

⏱️ 13 minutes

🧾️ Download transcript

Summary

Finance editor Edward McBride is joined by Simon Rabinovitch, who has delved into the history of coups to find out how attempts to overthrow a government can disrupt economic growth. And, an investigation into why the banking systems of some of Africa's largest economies are lurching towards crisis

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Transcript

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0:00.0

This is a passenger announcement. You can now book your train on Uber and get 10% back in credits to spend on Uber eats.

0:11.0

So you can order your own fries instead of eating everyone else's.

0:15.0

Trains, now on Uber. T's and C's apply. Check the Uber app.

0:29.4

Hello, I'm Edward McBride, finance editor of The Economist, and this is Money Talks. This week we'll be talking to Simon Rubinovich about the economics of coups after a tumultuous week in Turkey.

0:35.2

The sun has estimated that is as much as a 2% decline in income per capita every year after the coup for well over a decade.

0:45.7

And we'll be looking into what's causing turmoil in African banks.

0:49.5

There's really almost no transparency.

0:51.6

No one quite knows what those banks are getting up to.

0:53.8

I mean that is synonymous with a crisis.

0:58.1

We're now joined by Jonathan Rosenthal who's been looking at growing concerns about African banking.

1:04.0

Africa's banks have been placed under too much stress by the commodity crisis.

1:08.0

Oil-rich countries like Nigeria and Angola are seeing the economic ramifications of collapsing oil prices which have exposed weaknesses

1:16.2

in their banking systems.

1:18.2

Jonathan, first of all, how big a crisis are we talking about?

1:21.6

Well, that's the first thing that really

1:23.4

interested me and it's a question that I took to Alan Cameron he's an

1:26.6

economist at Exotics which is an investment bank that specializes in frontier

1:30.7

markets. I'm Alan Cameron and I'm an economist with Exotics focused on Africa.

1:35.0

Alan was one of the first prominent voices on African banking to call out Nigeria as being in a banking crisis.

1:41.0

Now that's something the Nigerians themselves have been denying and continue to deny. So I asked him what's going on there.

1:47.0

Well I think if you look at the sector, the biggest bank, the first Bank of Nigeria is showing us NPL that are about 18% as the last

1:56.1

results that they have reported.

...

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