BofA and Fitch report first damage estimates from the quake

Bloomberg reported that Turkish President Recep Tayyip Erdogan said the initial state response had been slowed by the fact that emergency personnel and their families were themselves trapped under collapsed buildings.


BoFA estimates that rebuilding costs in Turkey could be between $3 billion and $5 billion, or possibly more.

BoFA Estimates $3 Billion or More Reconstruction Cost

“It is very hard to put numbers on total cost at this point” but the estimated reconstruction cost of collapsed and damaged buildings in Turkey is around $3-5 billion, Bank of America’s Turkey economist Zumrut Imamoglu said in a note. “At least another $2-3 billion needed for supporting impacted people,” according to the report.

“There are many other costs associated with the disaster such as repair of energy and transport network, destroyed business activity, increase in NPLs and other humanitarian costs.”

Fitch:  Insurance Losses from Turkiye-Syria Earthquake


Most insurance payouts due to the earthquake that tragically hit Turkiye and Syria will ultimately be borne by global reinsurers, Fitch Ratings says.


This is first and foremost a human tragedy, which has led to several thousand fatalities and left hundreds of thousands of people homeless.


Insurable losses are hard to estimate as the situation is evolving, but they appear likely to exceed USD2 billion and could reach USD4 billion or more. However, insured losses could be much lower, perhaps around USD1 billion, due to low insurance coverage in the affected regions. The vast majority of insured losses will be covered by reinsurance, but the amount ceded is likely to be insignificant in the context of the global reinsurance market, with no implications for reinsurers’ ratings.






Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and and has contributed to the financial daily Referans and the liberal daily Radikal.