Turkey

In a week of pregnant pauses, while the nation awaited the outcome of Sunday's local elections and a new round of negotiations on Cyprus, the government's privatisation strategy also looked to be imminent, if not yet actual. Delays in formulating strategies were compounded too by news that the body set up to sell off Turkey's state industries - thereby helping save the country from penury - was itself substantially in debt.

Turkey's troubled telecoms privatisation took what appeared to be one step forwards and one step back this week, as a delay in the tendering process was balanced by some more positive news on the size of the stake on offer.

With most analysts predicting that the IMF delegation currently in Ankara going through Turkey's books will likely leave this week pretty satisfied, these are good times for the country's government. News that wholesale inflation had finally dipped below two digits, while exports have continued to rise, has also put market watchers and movers in a strongly positive mood.

With the seizure by Turkish authorities of some 219 companies belonging to the Uzan Group mid-February, the final chapters in one of the country's most controversial corporate sagas appeared to be closing this week. Now, many are wondering what next, as the state's new portfolio gets examined, and prospects for a lucrative fire sale get aired.

These have been busy times recently in Turkey's energy industry, with news of a major privatisation coming alongside reports of new oil exploration in the Black Sea. Meanwhile, the ongoing dispute over use of the Bosphorus by oil tankers flared into life again, with accusations and denials flying over alleged unnecessary closure of the straits by the Turkish authorities.

With a batch of positive figures rolling in as December closed, Turkey's economy looked to be in good shape as the year 2004 began. Meanwhile, as the stock market broke its historic high, analysts seemed confident that any potential knocks in the months ahead would not do too much harm. The questions now are how to sustain this momentum - and how deep this recovery is really going.