What matters on Tuesday, February 1

Natural gas flows from Iran to Turkey restarted and Turkey also secured natural gas supplies from Azerbaijan, according to President Recep Tayyip Erdogan. Speaking after the Cabinet meeting yesterday, President Erdogan also said electricity bills would be restricted. The lowest tariff for electricity consumption, which is now calculated as 5 kilowatts per day, will be raised to 7 kilowatts in line with the new regulation. Thus, monthly consumption will be increased from 150 kilowatts to 210 kilowatts. “Electricity bills for February will be calculated in line with the new regulation,” Erdogan added.

President Recep Tayyip Erdogan also stated that they have prepared three new support packages, totaling 60bn TRY, to be used with the guarantee of the Credit Guarantee Fund (KGF). Here are the details of the new support packages announced by President Erdogan:

>> Card payment support in business expenditures: This will be provided to SMEs and non-SMEs in order to access financing.

>> Investment support package: This will be provided to companies which manufacture high value-added products, beginning with pre-determined “primary” industries.

>> Export support package: This will be provided to SMEs which carry out FX (foreign exchange) earning operations and have export potential.

President Erdogan also said the government increased its agricultural support package by TRY 3.2bn to TRY 29bn for 2022.

The Central Bank has changed the process for companies to convert their FX into the FX-protected TRY deposit and participation accounts. In line with the new regulation, FX of companies held at banks abroad can be converted into FX-protected TRY deposit and participation accounts. The firms will also benefit from exemptions from corporate tax.

The Treasury will repay debts worth TRY 198.6bn, including TRY 83.2bn in external debts and TRY 25.9bn in interest payments, in February-April, according to the Ministry of Treasury and Finance. During the February-April period, some TRY 115.5bn of domestic debt redemption is also projected- TRY 53.1bn of this amount in interest payments while the rest in principal payment. In line with the ministry’s borrowing strategy, the Treasury will borrow TRY 109.5bn from the domestic market in the same period. The Treasury projects it will hold 22 bond auctions and direct sales of lease certificates – no planned external borrowing – in the three-month period.


The Istanbul Chamber of Industry (ICI) Turkey Manufacturing PMI (Purchasing Managers Index) dropped by 1.6 points to 50.5 points in January, compared to the previous month.

The Istanbul Chamber of Commerce (ITO) will release retail and wholesale prices in Istanbul for January (12.00 pm).

The Parliament will convene to discuss issues on the agenda.


>> The Central Bank’s primary policy is and was to achieve price stability

Daily DUNYA Editorial Coordinator and Columnist Talip Aktas analyses the Central Bank’s inflation target and its realization in the light of the bank’s primary objective.

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