This week, the interest rate decision by the Central Bank’s Monetary Policy Committee (PPK) is at the top of the agenda in Turkey. Market players expect no policy rate change from the PPK.
Regarding the economic data of the week, the Turkish Statistical Institute (TurkStat) will announce the Consumer Confidence Index for December and the Non-domestic Producer Price Index for October on Tuesday morning. It will also release the Agricultural Input Price Index for October on Wednesday. The Central Bank, meanwhile, will announce the Financial Services Confidence Index for December and the Culture and Tourism Ministry will release the November tourism figures on Friday morning.
Moreover, preparations for the regulation regarding the victims of delayed pension age (EYT) will continue during the week. Many employees are expected to retire with the enactment of the legislation. This will be a heavy cost for both the Social Security Institution and employers. Preparations are being made by the Ministry of Treasury and Finance to alleviate the severance pay burden on employers. Providing Credit Guarantee Fund (KGF) support with a guaranteed rate of 75% is being considered in this context. A fund of TRY 150bn will be provided initially for the treasury supported KGF guarantee system, which includes the support that will be provided to employers within the scope of EYT. Labor and Social Security Minister Vedat Bilgin stated that the technical work for EYT will soon be completed.
In terms of internal affairs, the third meeting of the minimum wage determination commission will be held at the Ministry of Labor and Social Security at 2.00 pm on Tuesday. Minister Vedat Bilgin will not attend the meeting, at which a wage proposal is expected to be submitted by the government. The Ministry of Industry and Technology will release brand, utility model, design, and patent data on the same day.
On Thursday, the Competition Board is expected to announce its decision regarding chain markets.
Parliamentary group meetings for political parties, which have not been held for two weeks due to budget negotiations, will be held this week. The leaders will hold their last group meeting of the year, as the assembly is expected to go into recess next weekend.
The number of newly established companies increased by 33.3% while the number of liquidated firms rose by 13.8% in October, year-over-year, according to the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
The net international investment position posted a USD 249.8bn deficit in October, according to the Central Bank.
IN OUR MAGAZINE THIS WEEK:
>> On the cover: The international money transfer and payment platform UPT (Uluslararasi Para Transferi) aims to enter new countries in Europe, the Middle East, and Africa, according to Hakan Ozat, General Manager and Board Member of UPT. The company, which operated in two to three countries three years ago, has raised this figure to 13 today. “We continue to expand our network by adding three new countries annually,” said Ozat. You can read the details on pages 8-9.
>> Professor Ilter Turan addresses if ‘Turkmenistan is opening up’ on page 10.
>> Q&A: Hassan Al Hashemi, Vice President of International Relations at Dubai Chamber. P. 11.
>> Chief Economist Gunduz Findikcioglu: Monetary shocks and interest rate conundrums. You can read the details on pages 12-13.
>> Zeynep Gurcanli: A story of sanctions. P. 14.
>> The Turkish Grain Board (TMO) has announced a tender to be opened on December 23 to import 24,000 tons of raw sunflower seed oil. The institution, which aims to strengthen its stock with the auction, will try to prevent possible price hikes.
>> The period for the FX-protected TRY deposit accounts (KKM) has been extended to December 31, 2023, according to the Official Gazette.
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