Although the interest rate charged for commercial loans has fallen to 13%, many companies came to halt in actively using loans. This has paved the way for enterprises to use funding at a higher cost through indirect ways. Companies, which experience cash difficulties and of which equities have melted against inflation, had headed towards maturity for their payments and input supplies. This situation has raised the market interest rates. Sector representatives told daily EKONOMI that the market interest rate has reached 50% and therefore many companies have to shoulder this interest rate burden to continue their operations. They also said enterprises that have difficulties in financing have had to reduce production and cancel some orders.
China is ready for multilateral cooperation with Turkey in Africa, according to Wu Jian, Chinese Council General in Istanbul. Speaking to daily EKONOMI, Jian said the recovery will accelerate in China and the global human resource, capital, and technology flow will largely be promoted with the removal of COVID-19 restrictions. “Thus, the global supply chain will strongly be supported, and the global economic recovery will accelerate,” Jian added.
Turkey and Russia may establish joint patrols in northern Syria, according to National Defense Minister Hulusi Akar. Speaking to a group of reporters at the parliament, Hulusi Akar commented on Turkey’s recent tripartite meeting with Syria and Russia in Moscow. Akar also said that he told his counterparts at the tripartite meeting in Moscow that it is not possible for Turkey to accept more refugees. He expressed hope that the tripartite talks will continue “reasonably, logically, and successfully.”
DAILY AGENDA
The Central Bank will release the weekly monetary and banking statistics (2.30 p.m.).
Meanwhile…
>> President Recep Tayyip Erdogan announced that the hike in civil servants’ salaries and pensions has been upgraded from 25% to 30% for the first half of the year. He also said the minimum wage support towards employers has been raised to TRY 400 for small enterprises.
>> The number of investors in Borsa Istanbul increased by 1.42 million to 3.78 million in December, year-over-year, according to the Central Securities Depository of the Turkish capital markets (MKK). The number of Turkish investors surged from 2.34 million to 3.76 million in the same period
>> The portfolio size of domestic investors in Borsa Istanbul jumped 250% from TRY 524.69bn to TRY 1.83tr in December, compared to the same month last year, according to MKK.
>> The Consumer Price Index (CPI)- based real effective exchange rate (REER) declined by 1.93% from 55.74 to 54.66 in December, compared to the previous month, according to the Central Bank. The CPI-based REER surged by 14.5% from 47.74 to 54.66 in December, year-over-year.
>> Turkey’s gold production totaled 42 tons in 2020, 39.5 tons in 2021, and 32 tons in 2022, according to Hasan Yucel, General Manager of Tumad Madencilik.
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>> Economy to retract in 1H, recover in 2H
Representatives of 10 sectors that accounted for 64% of Turkey’s exports of USD 231bn in January-November 2022 expect an economic contraction in the first half of 2023 (1H) and recovery in the second half of 2023 (2H).
