What matters on Tuesday, December 20

President Recep Tayyip Erdogan announced a new treasury-supported guarantee package at an event yesterday. “We will provide a 75% treasury-backed guarantee package for companies with high credibility but insufficient assurance and resources,” President Erdogan said. The package will concentrate on a wide range of business lines from energy to technology, digital transformation to housing, and from project to enterprise. Erdogan also noted that the government allocated a TRY 2bn guarantee package for female entrepreneurs and cooperatives.

Upon President Erdogan’s statement, Treasury and Finance Minister Nureddin Nebati tweeted that around TRY 250bn in financing will be provided to SMEs, adding to a TRY 200bn assurance opportunity announced at the beginning within the scope of the treasury-backed guarantee system.

Turkey’s benchmark stock index ended yesterday at 5,391.91 points with an increase of 3.41%, hitting another all-time high. Borsa Istanbul’s BIST 100 index, which also broke an intraday record of 5,403.98 points, gained 177.62 points from the previous close with a daily trading volume of TRY 137.8bn. Global equity markets have had a mixed course with increasing concerns there will be a recession after central banks contonuws rate hikes last week, while domestic markets have positively differentiated, led by banking stocks, according to analysts. They also said it’s unclear how long the hike will laxt on Borsa Istanbul, which continues to rally, largely as a result of investors who invest because they can’t get returns from FX and deposits due to high inflation and FX rates being on a horizontal course. Analysts warned investors to be careful about sharp declines.


The Consumer Confidence Index dropped by 1.3% from 76.6 to 75.6 in December, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).

The non-domestic producer price index (ND-PPI) rose by 2.28% in November, month-over-month, according to TurkStat. ND-PPI jumped 83.66% on an annual basis.


>> The number of total participants in the private pension system (BES), including the automatic enrollment system (OKS) has reached 15 million and the total fund size has neared TRY 420bn, according to Treasury and Finance Minister Nureddin Nebati.

>> The European Bank for Reconstruction and Development (EBRD) will provide a EUR 75m loan to Ronesans Holding’s hospital subsidiary Ronesans Saglik Yatirim AS, according to a statement from the EBRD. The financing will be used for the company’s public-private partnership (PPP) hospital investments in the country.

>> Istanbul Airport and Sabiha Gokcen Airport welcomed 87.1 million passengers in January-November, up 31 million year-over-year, according to data compiled by Anadolu Agency from the Directorate General of State Airports Authority (DHMI).

>> Erdemoglu Holding’s fiber, filament, and polymer manufacturer SASA Polyester has established a subsidiary in the Netherlands with a EUR 1m in capital.


>> Disengagement from agriculture feeds food inflation

Daily EKONOMI Editorial Coordinator and Columnist Talip Aktas examines agricultural developments and food inflation in Turkey and around the world.

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