What matters on Friday, June 3

NATO Secretary-General Jens Stoltenberg stated that the alliance was in touch with Turkey to find a united way forward to address Ankara’s concerns over Sweden and Finland’s bid to join the pact, according to Reuters. Finland and Sweden said on Wednesday they would continue a dialogue with Turkey over their bids for NATO membership, but did not say whether there had been progress on overcoming Ankara’s objections to their joining the military alliance. “When an ally, Turkey, raises concerns, then we have to do what we always do in NATO and that is to sit down, address those concerns, and then find a united way forward,” Stoltenberg told reporters at the White House following a meeting with the U.S. President Joe Biden. “That’s exactly what we’re doing now. We are in close contact with Ankara, with the political leadership there. I’ve spoken to President Recep Tayyip Erdogan and am in also very close contact with Sweden and Finland,” he added. A bid to join NATO requires unanimous backing from the alliance’s current 30 member states.

Around 20 million tons of grain and sunflower seeds from Russia and Ukraine are expected to be delivered to global markets with the support of a command center mechanism that will be established in Istanbul. A roadmap has been prepared under the auspices of the United Nations (UN) for a solution to the global food crisis, which emerged due to the ongoing war. The details of the roadmap will be discussed in the coming days at a meeting to be held with the participation of Russia, Ukraine, Turkey, and UN officials. Issues such as the route, insurance, and security of the ships and especially the clearing of sea mines in the region will be evaluated at the quadripartite meeting.

The defense company Baykar and the Defense Industry Agency (SSB) will donate a Bayraktar TB2 advanced combat drone to Lithuania for transfer to Ukraine, after Lithuanians crowdfunded nearly EUR 6m to buy it, according to a statement from the Lithuanian Defense Ministry. Baykar will deliver the drone in a few weeks.  “We came to Turkey to agree on conditions for the drone purchase, but they prepared the most pleasant surprise possible for us,” Lithuanian Deputy Defense Minister Vilius Semaska said in a statement. Baykar confirmed its donation in a Twitter post that included photographs of Semaska with a drone at its premises.

Turkey’s benchmark stock index saw a new record-high closing yesterday, and climbed to a fresh all-time high during trading hours, surpassing 2,601 points in both measures. Borsa Istanbul closed at 2,601.56 points with a daily gain of 1.28%. Starting the day at 2,578.72 points, the index rose 32.80 points from Wednesday’s previous record closing of 2,568.76. The index’s lowest value during the day was 2,565.09 points and its highest was 2,603.34 – an all-time high. Its total market value was more than TRY 2.1tr by market close, with a daily trading volume of TRY 40.8bn. According to analysts, concerns over inflation and recession continue to have an influence on the direction of asset prices, and the global risk appetite has a fluctuating course due to the latest macroeconomic data and the ‘hawkish’ expressions of central banks’ officials in their statements. Analysts stated that 2,500 points will be the support level and 2,650 points will be the resistance level for the BIST 100 index, in technical terms.


Annual inflation reached 73.50% in May, according to the Turkish Statistical Institute (TurkStat). The Consumer Price Index (CPI) increased by 2.98% in May month-over-month.

The domestic producer price index jumped 132.16% in May, compared to the same month last year, according to TurkStat. The D-PPI rose by 8.76% on a monthly basis.

The Banking Regulation and Supervision Agency (BDDK) will release banking sector statistics for April (2.00 p.m.).

The Central Bank will release net foreign exchange position of non-financial companies (2.30 p.m.). 


>> Turkey’s exports rose by 15.2% to USD 18.97bn and imports climbed by 43.8% to USD 29.65bn in May, compared to the same month last year, according to Trade Minister Mehmet Mus. Thus, foreign trade volume increased by 31.1% to USD 48.62bn while the foreign trade deficit totaled USD 10.67bn in the same period.

>> The Capital Markets Board of Turkey (SPK) has approved the initial public offering (IPO) of the machinery company Makim Makine Teknolojileri Sanayi ve Ticaret AS and Guler Yatirim Holding’s venture capital investment trust subsidiary Pardus Girisim Sermayesi Yatirim Ortakligi AS.

>> Residents’ FX deposit accounts increased by USD 204.4m from USD 214.49bn to USD 214.69bn in the week ending on May 27, compared to the previous week, according to the Central Bank.

>> The Central Bank’s international net reserves increased by USD 2.62bn from USD 9.56bn to USD 12.18bn in the week ending on May 27, compared to the previous week. The bank’s total reserves rose by USD 2.6bn from USD 100.26bn to USD 102.89bn in the same period.

>> Foreign investors’ net equity and government debt securities (GDS) outflows from Turkey totaled USD 40.9m, and USD 55m respectively, in the week ending on May 27, according to the Central Bank. Their net corporate bond acquisitions amounted to USD 7.8m in the same period. Thus, foreigners’ equity and GDS outflows from Turkey have continued for the sixth successive month.

>> The loan volume of the banking sector rose by TRY 139.15bn from TRY 5.89tr to TRY 6.03tr in the week ending on May 27, compared to the previous week, according to the Banking Regulation and Supervision Agency (BDDK). Non-performing loans rose by TRY 344m to TRY 163.92bn in the same period.

>> The total sales volume of the e-commerce platform Hepsiburada rose by 84.4% to TRY 8.3bn in the first quarter of the year, compared to the same quarter of the previous year.

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