What matters on Thursday, September 8

Ihracati Gelistirme Anonim Sirketi (IGE), which started to operate on March 1 to contribute to resolving the problems of exporters in terms of access to finance and credit guarantees, has extended its capital and management structure. 20 public and private banks became partners with IGE, which is also called the Credit Guarantee Fund (KGF) for exporters. The capital of IGE was increased from TRY 1.5bn to TRY 2.5bn with the new partnership structure. The capital increase is expected to raise the loan volume to be provided as guarantee. The loan volume, which was determined at TRY 22bn at first, is estimated to reach TRY 45bn with the new capital.

The size of the new Treasury-backed guarantee package which has been recently announced by Treasury and Finance Minister Nureddin Nebat may be as high as TRY 418bn, according to daily DUNYA. The upper limit for the KGF loan was increased from TRY 500bn to TRY 1tr with a Presidential Decree published in the Official Gazette on August 13. With this amendment, the total loan volume that can be provided by KGF was raised from TRY 500bn to TRY 1tr. The total loan volume provided through KFG has reached TRY 582bn as of September 5. The new guarantee package will be shared with the public when its development is completed.

Russian President Vladimir Putin warned of a looming global food crisis as he accused the West of sending most of the grain from Ukraine’s reopened ports to Europe instead of poorer and hungrier parts of the world, suggesting potential talks with Turkey about revising the landmark grain deal to limit the countries that can receive cargo shipments. In his strongest comments on the topic since the United Nations and Turkey-brokered deal was reached in July, Putin warned of a global food crisis if the situation was not addressed. He said he would contact Turkish President Recep Tayyip Erdoğan to discuss amending the deal.

Turkey and Serbia signed seven agreements in such areas as the economy, industry, and technology, including a protocol allowing passport-free travel for nationals on both sides during President Recep Tayyip Erdogan’s visit to Serbia, the second stop of his three-day Balkan tour.  Erdogan also stated at the Turkey-Serbia Business Forum in the Serbian capital Belgrade that they expect the number of tourists from Serbia visiting Turkey this year to surpass 300,000 for the first time.


The Central Bank will release weekly monetary and banking statistics (2.30 p.m.).


>> Turkish contractors signed 40 new project agreements worth USD 877m abroad in August, according to daily DUNYA. Thus, the number of overseas projects undertaken by Turkish contractors totaled 196 with a total project value of USD 6.8bn in January-August.

>> Turkish airports welcomed over 118.59 million passengers in January-August, up by 56.9% compared to the same period last year, according to Transport and Infrastructure Minister Adil Karaismailoglu.

>> The total amount in FX-protected TRY deposit accounts (KKM) has reached TRY 1.27tr as of August 26, according to the Banking Regulation and Supervision Agency (BDDK). The share of KKM in total deposits rose to 16.41% in the same period.

>> The total deposits of the banking sector have amounted to TRY 7.78tr 27tr as of August 26, according to BDDK. The sector’s total loan volume reached TRY 6.59tr in the same period.

>> The Central Bank’s FX sales to SOEs totaled USD 17.97bn in the first eight months of the year.


>> Lessons from history and Ukraine

Our Geo-Politics Columnist Professor Ilter Turan analyses the latest escalation in the Greek-Turkish relations.

Leave a Reply

Your email address will not be published.