With the world economy maintaining a low-interest rate for ten years, ample floating funds were driven into real estate, and real estate prices in developed cities continued to soar.

Kazakhstan was no exception, and especially the real estate prices of Almaty, Kazakhstan’s economic capital, soared to the point where they were higher than the prices of Paris and New York.

It was because foreign investors flocked in Kazakhstan expecting its economy to improve.

However, when the announcement of the new city development plan was made, there were sudden sell-offs in the market, and real estate prices in downtown areas began to fall gradually.

In other words, the development of new cities had made it impossible to expect any more profits from existing cities.

The announcement that six self-sufficient cities to inhabit 300,000 people each rattled Kazakhstan.

The rise in prices of urban buildings fell accordingly.

This meant that the fictitious demand was disappearing and the market was reshaping with the focus of the real demand.

It also had the effect of eliminating the relative deprivation that salaried workers who had little cash assets would have felt, reviving the desire to work.

This was because the rise in housing prices had caused frustration that no matter how hard they tried, they could not buy their own house.

This gave hope and laughter back to middle-class families.

On the contrary, foreign speculators were stamping their feet.

If the real estate sales were smooth, they would have sold all properties out quickly, taking into account the surrounding situation, which would cause a temporary shortage of foreign exchange in Kazakhstan, but they could not, as no one was buying properties at the moment.

As real estate prices, which had been fluctuating, stabilized, the government immediately raised interest rates.

It was intended to lure liquid funds released on the market into savings.

It was to encourage safe interest income rather than risky real estate speculation.

When the lost liquid funds returned to the bank, the bank could afford to invest in the manufacturing sector, and companies that were struggling with short-term foreign debts began to breathe.

Thanks to the economic growth, the government’s foreign debt had almost been paid off, but manufacturers’ short-term foreign debt had been increasing quite a bit due to increased investment.

Therefore, the government decided to pay off short-term foreign debts of companies first with stocks as collateral.

“Your Highness, we need to expand support to companies with technical skills. Even among exporters, we’ll have to sort out some of the resource-focused exporters.”

In the resource sector, the opposition would be formidable, as it was mainly centered on state-run companies, but the plan was to completely eliminate non-competitive state-run companies.

“Sir Eriksson, please select viable businesses.”

“There’s a relevant department, but can the royal family come forward?”

“Who’s against supporting and nurturing smart companies with technology and competitiveness? The question is whether our companies can survive the aftermath of the economic war. It’s quite threatening to see Turkey’s case.”

The firestorm was affecting Europe as the U.S. and China were fighting for their pride.

Turkey was the most troubled country.

Of course, political conflicts with the United States also played a part, but excessive facility investment by manufacturers was the underlying cause.

When the value of the currency plunged 45 percent compared to last year, the Turkish government began excessive foreign exchange defense, causing a dollar shortage.

Kazakhstan was forced to step up because it had signed currency swaps with the Turkish government.

“Your Highness, please wait a little longer before giving a hand. The priority is our people.”

“It’s a cross-country agreement. I can’t postpone it one day or another.”

“There is enough justification. Turkey has ten billion dollars in foreign reserves but has 35 billion dollars in foreign debts. How can we help it with our five billion dollars in foreign exchange reserves? We can’t.”

The reason for currency-swapping was for an emergency like this, but Eriksson wanted to break it.

“Turkey has currency swaps with other countries as well, so if they help, it can get through the foreign exchange crisis.”

“A foreign exchange crisis can come not only for Turkey but also for us. The current situation is very serious.”

The amount of currency swap was only five billion dollars, and Youngho could not damage Kazakhstan’s relations with Turkey to save such money.

If Kazakhstan fell out with Turkey, it would be uncomfortable using the Bosphorus Strait, the only way out to the Mediterranean Sea.

Not only that, but it could also disrupt the export of oil through the BTC pipeline, forcing Kazakhstan to be entangled with Turkey in one way or another.

“Oh, I’m not saying we shouldn’t help, but let’s just give a little bit of support and wait and see. It’s not too late to fully help if we decide there’s no big risk.”

“We have gold. What are you worried about?”

“I didn’t think of it. I wondered how you could give five billion dollars lightly.”

“It would be frightening to know that we have such a huge amount of gold. I want to show off here and there.”

“Gold is like the last bastion. When you use it, the world will be in a state of chaos.”

An expert like Eriksson also said that the current situation could not be predicted.

There was a certain trend in the economic flow, which had been broken.

Although Kazakhstan’s economic situation was at its peak, it should also be careful as the future was uncertain.

“Your Highness, why don’t you make a public statement?”

“Aren’t we just going to confuse people by making the people nervous?”

“It’s to be alerted by the fall of Turkey. The people will rather trust and follow it if the royal family asks to be economically careful and to save rather than to spend.”

“You’re saying we should make Turkey’s situation as a teacher.”

This was because the crisis in the neighboring country could be more alerting to the people.

However, no government action was necessary. When Turkey was in a financial crisis following Greece, the people began to recognize that Kazakhstan also was not a safe zone.

Sensing through the news that the world economy was serious, the people began to take caution.

It was a huge shock that Turkey, once a big star, was reeling.

To the people of Kazakhstan, Turkey was like a big brother.

***

Azerbaijan had been a rich country around the Caspian Sea since the time of the Soviet Union.

The source of wealth was oil.

Although oil reserves were not as large as those in the Middle East, they were a lot compared to its population.

However, the military funds spent for border disputes with neighboring Armenia was holding Azerbaijan back.

As the country’s economy depended on oil exports, it could face a crisis if crude oil prices fell due to lack of a manufacturing base.

Azerbaijan’s Achilles’ heel was the economic structure that fluctuated according to oil prices.

Youngho had maintained a strong relationship with Azerbaijan through joint railway projects. Apart from that, Azerbaijan and the Kazakh royal family were inseparable.

Azerbaijan was like the mother country that made the present Youngho.

Having a separate palace in Baku was also part of his determination not to forget Azerbaijan.

The time when Youngho visited Baku was when the situation in Turkey was getting out of control.

Azerbaijan, like Turkey, was facing a foreign exchange crisis, so Youngho visited to help President Aliyev.

Azerbaijan’s foreign reserves were only 4.8 billion dollars.

The size of foreign debt was about 30 percent of GDP, so it was not a situation to be much concerned about, but it had set aside too little foreign reserves.

With such worries, President Aliyev could not help but be glad to see Youngho’s visit.

“Your Highness, I would have visited you if you hadn’t. I’m having a headache these days. I can’t even sleep well. We are going to have to get an IMF relief loan because of our lack of foreign reserves.”

Azerbaijan’s foreign exchange reserves had also sharply decreased since last year as it had been trying to defend its exchange rate.

“I was assuming you had a lot to worry about.”

“With the IMF bailout, the nation’s credit rating will decline. Due to the lack of manufacturing infrastructure, we rely solely on imports, but a drop in credit poses problems for raw materials supply and demand. Your Highness, please help us.”

“It’s a brother country, so of course I should help. How much do you need?”

Eriksson said Turkey was not facing immediate danger with its manufacturing-based economic structure, but Azerbaijan was in a more dangerous situation.

If the Caspian Sea nation faltered, it would affect Kazakhstan as well, so helping Azerbaijan was a priority.

So, Youngho hurried to Baku, and, sure enough, President Aliyev asked for help.

“First of all, I think we can get rid of some of our short-term foreign debts with about 1.5 billion dollars.”

“As you already know, our government’s foreign exchange reserves are not very large. And the Turkish government has requested assistance, too. I can’t neglect Turkey because of Azerbaijan.”

“…”

“Our government is not in a situation to help you directly, but I think we’ll be able to provide support from the royal family.”

Azerbaijan was in a situation where Youngho could help personally as much as he wanted.

“Oh! I’m glad to hear that. With the support of the Kingdom of Kazakhstan, we won’t be pressed hard by our creditors.”

“I’m glad I could help you.”

“But how many years can you spare since we’re not in a position to repay the loan within this year?”

“If you pay me back in cash, you’ll have another crisis. What are you going to do then? I’d like to get it with oil. How about that?”

“I should be thankful for it from the perspective of our country, but the previously developed sea oil fields are already in use…”

“How about discovering new oil fields in the untapped waters? We’ll do the exploration. That doesn’t matter, does it?”