The financial problems faced by Turkish contractor companies undertaking projects in the Middle East and North Africa countries and a case study for Libya

As a result of the economic crises, contractions and lack of funds for investment projects that have been occurring in Turkey since the end of 1990?s and especially the financial crises during 2001, many Turkish firms involved in construction sector have moved their operations to foreign markets.The purpose of this study is to depict the financial problems faced by Turkish Contractor Companies undertaking projects overseas, specifically in the Middle East and North Africa Region and analyze important financial topics that they should pay attention to.Within this context Great Socialist People's Libyan Arab Jamahiriya, GSPLAJ, that are in Middle East ? North Africa Region has been analyzed in detail. The financial issues in these countries during the project stage have been evaluated. The letter of guarantees, which the contractors have to submit to the Libyan Authorities and Libyan Banks and have a sample in the specification documentation, have been analyzed. A sample solution of the mentioned letter of guarantees, which can be issued by Turkish Banks legally, is given. Also emphasis is given to the problems that occur while dealing with correspondent banks.