‘A fire in their kitchen’: In Turkey, dreams are shattered by economic realities
3 years ago

‘A fire in their kitchen’: In Turkey, dreams are shattered by economic realities

The Independent  

It was just a few years ago, before Turkey’s economy began to spin out of control, when times were pretty good for Mevlut Tekin, his wife Yasemin and their children. “Now we’ve even had to reduce the amount of food we eat.” Turkey’s economy has been under tremendous strain, with the value of the lira dropping dramatically over the past year and official inflation at 25 per cent, with prices for some goods doubling in recent months. But Turkey’s woes have been exacerbated by runaway inflation caused in large part by what economists call President Recep Tayyip Erdogan’s “unorthodox” economic beliefs. “For middle-class families, the inflation they’re experiencing is mostly food prices, heating and education costs for their children,” says Alp Erinc Yeldan, a professor of economics at Istanbul’s Kadir Has University. “It’s about not being able to make ends meet.” Desperate to protect themselves from inflation, those with money have turned to dollars, euros or cryptocurrencies, adding to the lira’s woes.

Family Job Children Inflation Turkey Families Cent Able Istanbul Lira Deniz Naomi Cohen Yasemin Mevlut  inflation  families  realities  economic  children  turkeys  mevlut  job  family  dreams  able  cent  lira  turkey  shattered  kitchen

History of this topic

Turkey’s new central bank chief assures that work to combat inflation will press on
11 months, 1 week ago

Turkey’s new central bank chief assures that work to combat inflation will press on

Associated Press  

ANKARA, Turkey — The work to tame inflation in Turkey — namely through interest rate hikes — will continue “with determination,” the country’s new central bank chief said Thursday, offering some certainty about efforts to right the battered economy following his precedessor’s surprise resignation. Speaking for the first time since taking the helm of the central bank on Saturday, Fatih …

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift
1 year, 4 months ago

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by an aggressive 7.5 percentage points on Thursday, a larger-than-expected boost that offers a new sign of a return to more traditional economic policies under President Recep Tayyip Erdogan. The team includes former Merrill Lynch banker Mehmet Simsek, who returned as finance minister, a post he held until 2018, …

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround
1 year, 6 months ago

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered a large interest rate hike Thursday, signaling a shift toward more conventional economic policies to counter sky-high inflation following criticism that President Recep Tayyip Erdogan’s approach has made a cost-of-living crisis worse. Simsek said soon after his appointment that Turkey had no other option but to return to a “rational ground.” In another …

Turkish leader says his economic views are same but he’ll accept finance minister’s approach
1 year, 7 months ago

Turkish leader says his economic views are same but he’ll accept finance minister’s approach

Associated Press  

ISTANBUL — Turkish President Recep Tayyip Erdogan said his economic policies have not changed but he suggested in comments published Wednesday that his finance minister will have leeway to move away from an unconventional approach that many have blamed for a worsening cost-of-living crisis. While the appointments signaled a shift in the longtime Turkish leader’s views on how to stimulate …

Erdogan’s new central bank chief signals hope for Turkey’s economic turnaround
1 year, 7 months ago

Erdogan’s new central bank chief signals hope for Turkey’s economic turnaround

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan appointed a former U.S.-based bank executive to head the central bank Friday, sending the strongest signal yet that the newly reelected leader might pivot from his unusual economic policies that many blame for worsening a cost-of-living crisis. The choices for two key financial roles have raised hopes that Erdogan, reelected last month …

Erdogan's new central bank chief signals hope for Turkey's economic turnaround
1 year, 7 months ago

Erdogan's new central bank chief signals hope for Turkey's economic turnaround

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Turkish President Recep Tayyip Erdogan …

Turkey's annual inflation rate dips under 40% for first time in 16 months
1 year, 7 months ago

Turkey's annual inflation rate dips under 40% for first time in 16 months

Firstpost  

Turkey’s annual inflation rate fell below 40 per cent in May for the first time in 16 months, thanks to a brief offer of free petrol to homes, according to official figures released on Monday. According to the country’s statistics office, consumer prices grew 39.6 per cent year on year and were nearly steady, at 0.04 per cent, compared to …

After Turkey election win, what problems does Erdogan face next?
1 year, 7 months ago

After Turkey election win, what problems does Erdogan face next?

Al Jazeera  

Economic concerns and relations with the West lie at the top of Erdogan’s agenda after presidential run-off victory. “Despite the highest inflation we’ve seen in years, despite significant pressure on the lira, despite high unemployment and people’s concerns, winning the election he will feel quite vindicated,” Peker said. “The economy has relied on financing from Russia, investments from the Gulf …

Turkey’s lira hits record low, stocks rise after Erdogan’s win
1 year, 7 months ago

Turkey’s lira hits record low, stocks rise after Erdogan’s win

Al Jazeera  

The Turkish leader won the presidency for a third time after a run-off vote on Sunday. The Turkish lira plunged to record lows after the re-election of President Recep Tayyip Erdogan, a sign that currency markets are not confident in the country’s economic future after the longtime leader’s victory. But Turkish stocks, on the other hand, rose as Erdogan entered …

Economy tops Erdogan’s manifesto for Turkish elections
1 year, 9 months ago

Economy tops Erdogan’s manifesto for Turkish elections

Al Jazeera  

President and his party face challenge at polls after dive in the lira and surge in inflation. Turkish President Recep Tayyip Erdogan has launched his re-election campaign with a party pledge to slash inflation to single digits and boost economic growth as he seeks to extend his two decades in power in the May 14 vote. “We will improve the …

Home prices, rents skyrocket in Turkey amid economic turmoil
2 years, 1 month ago

Home prices, rents skyrocket in Turkey amid economic turmoil

Associated Press  

ISTANBUL — Hatice Erdal has been given a week to vacate her rental house that is due to be knocked down. While increasing construction costs and inflation have pushed up housing prices globally, Turkey’s property crisis has been exacerbated by President Recep Tayyip Erdogan’s unorthodox policy of lowering interest rates despite high inflation — the opposite of traditional economic thinking. …

Turkish central bank cuts rates again despite high inflation
2 years, 1 month ago

Turkish central bank cuts rates again despite high inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered another outsized interest rate cut Thursday despite inflation running at more than 85% and other countries moving the opposite way to ease the pain of soaring prices. The central bank said its Monetary Policy Committee decided to lower the benchmark policy rate by 1.5 percentage points to 9%, following a series of similar …

Yearly inflation in Turkey rises to new 24-year high of 85%
2 years, 2 months ago

Yearly inflation in Turkey rises to new 24-year high of 85%

Associated Press  

ANKARA, Turkey — Annual inflation in Turkey continued to rise in October, official figures showed Thursday, pushing the price of essential goods higher and amplifying a cost-of-living crisis in the country. While the pandemic and Russia’s invasion of Ukraine have stoked inflation around the world, economists believe that inflation in Turkey was fueled by President Recep Tayyip Erdogan’s belief that …

Turkish central bank makes huge rate cut amid 83% inflation
2 years, 2 months ago

Turkish central bank makes huge rate cut amid 83% inflation

Associated Press  

ISTANBUL — Turkey’s central bank has slashed interest rates for the third month in a row, making its biggest drop this year despite sky-high inflation that is squeezing people’s finances as it follows President Recep Tayyip Erdogan’s unorthodox economic views. “It is critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive …

Turkey's annual inflation hits new 24-year high at 83.45 %
2 years, 3 months ago

Turkey's annual inflation hits new 24-year high at 83.45 %

Firstpost  

Experts say inflation is much higher than official statistics, and the independent Inflation Research Group on Monday put the annual rate at an eye-watering 186.27 per cent Ankara: Turkey’s annual inflation reached a new 24-year high of 83.45 per cent in September, according to official data on Monday, pushing the cost of essential goods higher and further hitting households already …

Turkey lowers interest rate even as inflation soars to 80%
2 years, 4 months ago

Turkey lowers interest rate even as inflation soars to 80%

Associated Press  

ANKARA, Turkey — Turkey’s central bank on Thursday lowered its key interest rate despite inflation surging to nearly 80% and making it difficult for people to buy what they need, falling in line with the unorthodox economic views of the country’s president. President Recep Tayyip Erdogan has pressured the bank into lowering borrowing costs in a bid to boost economic …

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired
2 years, 5 months ago

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired

ABC  

While much of the world anxiously waits to see if central banks will keep raising interest rates to combat a post-pandemic surge in inflation, Turkey is bucking the global trend. He has fired three central bank governors in four years for attempting to raise interest rates, and described anyone who draws a link between rates and inflation as "illiterates and …

Data puts Turkey’s annual inflation at 78.6%, a 24-year high
2 years, 6 months ago

Data puts Turkey’s annual inflation at 78.6%, a 24-year high

Associated Press  

ISTANBUL — Annual inflation in Turkey hit 78.62% in June, the highest rate since 1998, according to official data released Monday. While many countries are seeing rising consumer prices, critics blame Turkey’s problems on President Recep Tayyip Erdogan’s economic policies. The Turkish leader insists that high borrowing costs cause inflation — a position that contradicts established economic thinking — and …

Data puts Turkey’s annual inflation at 73.5%, a 24-year high
2 years, 7 months ago

Data puts Turkey’s annual inflation at 73.5%, a 24-year high

Associated Press  

ANKARA, Turkey — Annual inflation in Turkey hit 73.5% in May, the highest rate since 1998, according to official data released Friday as a cost-of-living crisis in the country deepens. While many countries are seeing rising consumer prices, critics blame Turkey’s problems on President Recep Tayyip Erdogan’s economic policies. The Turkish leader insists that high borrowing costs cause inflation - …

Inflation in Turkey soars to eye-popping near 70% in April
2 years, 8 months ago

Inflation in Turkey soars to eye-popping near 70% in April

Associated Press  

ANKARA, Turkey — Inflation in Turkey soared to nearly 70% in April, official data showed Thursday, as skyrocketing prices eat away at earnings and put even basic necessities out of reach for many households. The Turkish Statistical Institute said consumer prices rose by 69.97% in April compared with the previous year, the biggest year-over-year increase since 2002. But in Turkey, …

Turkey’s inflation rate soars to almost 70 percent
2 years, 8 months ago

Turkey’s inflation rate soars to almost 70 percent

Al Jazeera  

The consumer price index has risen by 69.97 percent year-on-year in April compared with 61.14 percent in March. Turkey’s official inflation rate has spiralled to nearly 70 percent in April, posing a huge challenge to President Recep Tayyip Erdogan, whose unconventional economic policies are often blamed for the economic turmoil. The consumer price index rose by 69.97 percent year-on-year in …

Turkish central bank doesn’t change rates as inflation soars
2 years, 9 months ago

Turkish central bank doesn’t change rates as inflation soars

Associated Press  

ISTANBUL — Turkey’s central bank kept interest rates unchanged for a third straight month Thursday as consumer prices surge at an eye-popping pace, coming after a series of rate cuts last year triggered a currency crisis that has made it difficult for people to buy basic goods. Other central banks around the world are moving to raise interest rates as …

Turkey’s inflation hits 54%, deepening cost-of-living woes
2 years, 10 months ago

Turkey’s inflation hits 54%, deepening cost-of-living woes

Associated Press  

ANKARA, Turkey — Turkey’s annual inflation rate further accelerated in February, official data showed Thursday, marking the biggest jump since 2002 and deepening the squeeze on households that are already struggling to purchase basic goods. In comparison, annual inflation increased by a record 5.8% in the 19 countries that use the euro currency in February and by 7.5% in the …

Turkey lowers taxes on basic foods to fight high inflation
2 years, 11 months ago

Turkey lowers taxes on basic foods to fight high inflation

Associated Press  

ISTANBUL — Turkey’s president announced a significant reduction in taxes on basic food supplies Saturday as the country faces rampant inflation and numerous protests over eroding living standards. The currency has been hovering around 13.5 since that record low after the government instituted a new financial tool to push savers away from buying foreign currencies and encourage them to convert …

Turkey’s central bank ends string of interest rate cuts
2 years, 11 months ago

Turkey’s central bank ends string of interest rate cuts

Associated Press  

ANKARA, Turkey — Turkey’s central bank kept a key interest rate unchanged on Thursday, halting a string of rate cuts that triggered a currency crisis and sent consumer prices skyrocketing. The bank’s Monetary Policy Committee said it decided to keep its policy rate “constant” at 14%, putting on hold a rate-cutting policy that has reduced borrowing costs by 5 percentage …

Turkish lira rebounds after Erdogan vows to prop up deposits
3 years ago

Turkish lira rebounds after Erdogan vows to prop up deposits

Associated Press  

ISTANBUL — Turkey’s currency made significant gains Tuesday after President Recep Tayyip Erdogan announced extraordinary measures that aim to safeguard deposits in the lira against volatility seen in recent weeks and boost confidence among Turks as they have watched their buying power erode. The currency has been on a rollercoaster ride since the country’s Central Bank began lowering interest rates …

Turkey’s Erdogan announces moves to encourage lira savings
3 years ago

Turkey’s Erdogan announces moves to encourage lira savings

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan on Monday announced a series of measures to encourage lira-denominated savings, easing the pressure on the beleaguered Turkish currency. In a televised speech following a Cabinet meeting, Erdogan said the government would offer a new financial vehicle that would “alleviate” the concerns of citizens who have been buying foreign currency, fearing that …

Turkish lira dips to new low after another interest rate cut
3 years ago

Turkish lira dips to new low after another interest rate cut

Associated Press  

ANKARA, Turkey — Turkey’s Central Bank again cut a key interest rate Thursday despite soaring consumer prices that are making it difficult for people to buy food and other basic goods, sending the country’s currency to record lows against the U.S. dollar. The Central Bank has now slashed rates by 5 percentage points since September, running against conventional economic policy …

Erdogan says he hopes volatile Turkish lira will steady soon
3 years, 1 month ago

Erdogan says he hopes volatile Turkish lira will steady soon

Al Jazeera  

Turkish president promises to continue his policy of low interest rates despite massive plunge in the Turkish currency. Turkish President Recep Tayyip Erdogan has said he hopes that volatile foreign exchange and inflation rates would stabilise shortly as he reiterated his stance against high interest rates in the wake of a huge plunge in the lira currency. “Tayyip Erdogan said …

EXPLAINER: Turkey’s currency is crashing. What’s the impact?
3 years, 1 month ago

EXPLAINER: Turkey’s currency is crashing. What’s the impact?

Associated Press  

ANKARA, Turkey — Turkey’s beleaguered currency has been plunging to all-time lows against the U.S. dollar and the euro in recent months as President Recep Tayyip Erdogan presses ahead with a widely criticized effort to cut interest rates despite surging consumer prices. Turkey’s Central Bank has cut borrowing costs by 4 percentage points since September, in line with Erdogan’s wishes, …

Explained: Why Turkey's lira is crashing and what it has to do with strongman Recep Tayyip Erdogan
3 years, 1 month ago

Explained: Why Turkey's lira is crashing and what it has to do with strongman Recep Tayyip Erdogan

Firstpost  

The lira has lost more than 40 percent of its value against the dollar since the start of the year and the annual inflation rate has reached nearly 20 percent, quadruple the government’s target This week saw Turkey’s lira plunging as low as 14 to the US dollar and hitting fresh lows against the euro. Erdogan has already fired three …

Erdogan replaces finance minister as Turkey’s lira crashes
3 years, 1 month ago

Erdogan replaces finance minister as Turkey’s lira crashes

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan appointed a new treasury and finance minister Thursday after the previous one stepped down as the country’s currency has tumbled to record lows. Erdogan strongly argues that high interest rates cause inflation — contrary to conventional economic thinking — and has made clear that the country would press ahead with rate cuts. …

Why is Turkey’s lira crashing and will currency crisis worsen?
3 years, 1 month ago

Why is Turkey’s lira crashing and will currency crisis worsen?

Al Jazeera  

The lira lost nearly 30 percent of its value against the United States dollar in November. The lira’s recent troubles were triggered after Turkey’s central bank cut interest rates by a full percentage point on November 18 – the third cut since September – and signalled it would slash rates again in December. Yet the country’s benchmark interest rate currently …

Turkey’s economy grows 7.4% in Q3, but lira crisis risks mount
3 years, 1 month ago

Turkey’s economy grows 7.4% in Q3, but lira crisis risks mount

Al Jazeera  

Turkey’s economy powered ahead of most of its peers in Q3, but soaring inflation and a currency crisis could pose a threat to that recovery. Turkey’s economy zoomed ahead of most peers to expand 7.4% in the third quarter, but soaring inflation and a slump in the lira mean the surge could be short-lived. “With the current acute lira selloff …

Turkish lira plunges after Erdogan defends rate cuts
3 years, 1 month ago

Turkish lira plunges after Erdogan defends rate cuts

Associated Press  

ANKARA, Turkey — The Turkish currency weakened by some 10% against the U.S. dollar Tuesday, a day after President Recep Tayyip Erdogan insisted there would be no turning back from his unconventional policy of cutting interest rates despite high inflation. Erdogan, who had declared himself an “enemy” of high borrowing costs, portrayed his economic policies as “an economic war of …

Turkey’s lira hits record low after Erdogan defends rate cuts
3 years, 1 month ago

Turkey’s lira hits record low after Erdogan defends rate cuts

Al Jazeera  

Overall, the lira has lost nearly 40 per cent of its value against the dollar since the start of the year. The Turkish lira has hit a record low of 12.49 against the US dollar after President Recep Tayyip Erdogan defended recent sharp rate cuts. Erdogan has applied pressure on the central bank to pivot to an aggressive easing cycle …

Turkey again cuts interest rates, currency hits new low
3 years, 1 month ago

Turkey again cuts interest rates, currency hits new low

Associated Press  

ANKARA, Turkey — Turkey’s Central Bank cut interest rates again Thursday, a day after President Recep Tayyip Erdogan spoke out against high borrowing rates and raising increasing concerns about the impact of soaring consumer prices on families and businesses. The rate cuts have increased concerns over the bank’s independence from Erdogan, who, contrary to traditional economic theory, argues that steep …

Turkey’s central bank cuts rates again, lira sinks to record low
3 years, 1 month ago

Turkey’s central bank cuts rates again, lira sinks to record low

Al Jazeera  

Turkey’s central bank slashed interest rates for the third month running, and once again the lira paid the price, sinking to a new record low. The Turkish lira fell to a record low after the central bank cut borrowing costs for a third straight month, a move that risks further undermining price and currency stability. Yet under pressure from President …

‘We don’t deserve this': Inflation hits Turkish people hard
3 years, 1 month ago

‘We don’t deserve this': Inflation hits Turkish people hard

Associated Press  

ISTANBUL — Market-stand owner Kadriye Dogru makes do with stale, sesame-covered bagels, known as simit, for lunch these days. While rising consumer prices are affecting countries worldwide as they bounce back from the coronavirus pandemic, economists say Turkey’s eye-popping inflation has been exacerbated by economic mismanagement, concerns over the country’s financial reserves and President Recep Tayyip Erdogan’s push to cut …

Turkish lira continues to slide after interest rate cut
3 years, 2 months ago

Turkish lira continues to slide after interest rate cut

Associated Press  

ANKARA, Turkey — The Turkish lira continued to slide and reached a record low against the U.S. dollar Friday, a day after the Central Bank sharply cut interest rates. The Central Bank’s monetary committee cut the rate Thursday from 18% to 16%, despite rising inflation, surprising analysts and compounding a long run of losses. Economists generally view higher interest rates …

Turkish lira at new lows after Erdogan fires bank officials
3 years, 3 months ago

Turkish lira at new lows after Erdogan fires bank officials

Associated Press  

ANKARA, Turkey — The Turkish lira hit record lows against the dollar Thursday after President Recep Tayyip Erdogan fired senior central bank officials, heightening concerns over the Turkish leader’s interference in the bank’s activities. Erdogan dismissed deputy central bank governors Semih Tumen and Ugur Namik Kucuk as well as Abdullah Yavas, a member of the bank’s monetary policy committee, according …

Turkish central bank bows to Erdogan’s pressure to cut rates
3 years, 3 months ago

Turkish central bank bows to Erdogan’s pressure to cut rates

Associated Press  

ISTANBUL — Turkey’s Central Bank unexpectedly cut the main interest rate by one percentage point on Thursday, bowing to President Recep Tayyip Erdogan’s demand for lower borrowing rates to boost growth. The bank’s monetary committee cut the policy rate from 19% to 18% despite an annual inflation rate of 19.25%. Economists generally view higher interest rates as a curb on …

Turkey: Central bank resists Erdogan’s calls for rate cut
3 years, 5 months ago

Turkey: Central bank resists Erdogan’s calls for rate cut

Al Jazeera  

The Turkish lira rallied after the country’s central bank resisted President Recep Erdogan’s calls for an interest rate cut and kept its benchmark rate unchanged. The Turkish lira rallied to lead gains among emerging-market peers after Turkey’s central bank held its benchmark interest rate, defying President Recep Tayyip Erdogan’s calls for a cut. Positive Yield “With analysts expecting inflation to …

Turkish lira dips to record low over Erdogan rate comments
3 years, 7 months ago

Turkish lira dips to record low over Erdogan rate comments

Associated Press  

ANKARA, Turkey — The Turkish lira dipped to new record lows on Wednesday after President Recep Tayyip Erdogan rattled investor confidence by saying he had spoken to the central bank governor about the need to lower interest rates. It is imperative that we lower interest rates,” Erdogan said in an interview late Tuesday with state broadcaster TRT. In March, Erdogan …

Erdogan urges investors to trust Turkey's economy, potential
3 years, 9 months ago

Erdogan urges investors to trust Turkey's economy, potential

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} Turkish …

Erdogan urges investors to trust Turkey’s economy, potential
3 years, 9 months ago

Erdogan urges investors to trust Turkey’s economy, potential

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan urged foreign investors Wednesdays to have confidence in Turkey’s economy days after he fired his third central bank governor in less than two years, causing market upheaval. Erdogan last week dismissed central bank head Naci Agbal, who had raised investor confidence and shored up the Turkish currency following a series of interest …

His political future at stake, Erdogan seeks to remake Turkey
3 years, 9 months ago

His political future at stake, Erdogan seeks to remake Turkey

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. In London, Paul McNamara, investment director at asset managers …

Turkish economy shrinks less than expected in second quarter
5 years, 4 months ago

Turkish economy shrinks less than expected in second quarter

Al Jazeera  

Increases in the agricultural, industry and services sector help buoy Turkey’s recession-battered economy. The Turkish economy contracted 1.5 percent year-on-year in the second quarter, better than expectations, and recorded another positive quarter-on-quarter reading as it looks to shake off the effects of recession after last year’s currency crisis. Compared with the first quarter, gross domestic product expanded at a seasonally …

Turkey is still on the brink of a recession
6 years ago

Turkey is still on the brink of a recession

The Economist  

T HE GOOD news for Turkey’s beleaguered economy is that the bad news could have been much worse. The Turkish lira, which spent much of the past summer in a death spiral, has rebounded to its highest level since August, when America slapped asset freezes on two senior Turkish officials and tariffs on the country’s steel and aluminium exports. Investor …

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