Turkish Major Banks Withdraw Support Against Erdoğan: Reuters

Six leading Turkish banks are refusing to finance the construction of a canal that is intended to bypass the Bosphorus. This was reported by Reuters.

The project is being promoted by the country’s President Erdoğan. The reasons for this position are political, environmental, and financial. For instance, the canal's construction could lead to issues regarding the supply of drinking water to Istanbul.

The mayor of Istanbul and its citizens have repeatedly opposed this project. It is expected that the canal, which will be 150 meters wide and 25 meters deep, will reach completion in 2023. It has been mentioned that the plans could fail if Erdoğan's party loses in the elections.

The total cost of this project was estimated at $13 billion in 2019. With banks withdrawing their support, state entities and foreign investors may step in to fund it, the agency writes. Russian officials are also concerned about the project, fearing that the canal may not fall under the Montreux Convention, which restricts the entry of foreign military vessels into the waters of the Black Sea through the Bosphorus.