Turkey feels the pinch

Hard times for retailers

By Istanbul correspondent Chris Morris

The Turkish Government has admitted that the country will pay a heavy price for the financial crisis which struck last week, leading to the devaluation of the Turkish lira.

The currency has lost about 30% of its value against the dollar in less than a week - and prices are beginning to rise.

They're keeping all the money they have for bread and daily food supplies

Tahsin, market trader

A good deal of the economic hardship will be felt by ordinary Turks who are already struggling to get by - and disillusionment with the government is evident.

In a market near the shores of the Golden Horn in Istanbul, business has never been worse. There is a holiday next week and people should be stocking up with supplies and presents for the family. But the economic crisis has crushed the festive spirit.

No luxuries

Tahsin, who sells clothes in the market, says people are "really concerned".

"No one's buying anything except the essentials. They're keeping all the money they have for bread and daily food supplies. There's nothing left for anything else."

Now there are lots of companies suffering

Husamettin Kavi, businessman

The building next door to the market houses the Istanbul Chamber of Commerce. Business leaders have gathered to try to figure out what to do next.

Business hit

Husamettin Kavi says that like everyone else, they had been working under the assumption that the government would stick to its economic programme.

The value of the Turkish lira has plunged

"We committed ourselves to this programme and we all calculated our cost according to the declared exchange rates. Now there are lots of companies suffering. Now everybody's trying to find out how to create solutions.

"We have some competitive measures for the international markets," he promises.

There may be opportunities for exporters to make money as the lira loses value, but for most people just getting by has become a bit of a gamble.

We have to blame the administrators

Serif, lottery ticket seller

Further down the street, the men selling lottery tickets are tempting punters with the promise of a big pay day.

Everyone could do with the money. The little they already have is worth substantially less than it was just one week ago.

Belts tightened

"I don't really know but we have to blame the administrators," says Serif, a lottery ticket seller.

Bulent Ecevit's government is blamed by many Turks for the crisis

"Round here people aren't even asking us the price any more, let alone buying anything."

It's the same story right through the neighbourhood. People are nervous about what the future might hold - some of them are angry, others seem resigned to struggle.

Political commentator Ferai Tinc says people will simply tighten their belts one more notch - but they will not forget.

"I don't expect fierce reaction but what I expect is the loss of belief in the politics, in the politicians and in the system certainly," he says.

On the toy stall, a small electric dog yaps at passers by. It's one million for every bark, says the stall-holder, and it'll be two million tomorrow.

In spite of everything, many people have not lost their sense of humour - they are used to tough times, and to high inflation.

But each time the economy takes a tumble, they have less faith in the people who run the country.