What matters on Tuesday, January 17

The new German Supply Chain Due Diligence Act (LkSG) will create opportunities rather than risks, according to Turkish exporters. Sector representatives told daily EKONOMI that the LkSG, which imposes an obligation of environmental protection and ‘humanitarian working conditions’ on both German companies and their suppliers, will be an anchor for the sectors in Turkey that need improvement, and therefore this will make a positive contribution to Turkish exports. Stressing that they are in a better condition than their rivals in Asia and Africa, they also said sub-industrialists can turn the LkSG to advantage if they take the right steps.

USD 28bn savings have been made from a USD 183bn investment made within the scope of the PPP (Public-Private-Partnership), according to Transport and Infrastructure Minister Adil Karaismailoglu. Speaking at the opening of the 7th Istanbul PPP Week, Adil Karaismailoglu said Turkey ranks 12th in terms of PPP investments. “Turkey had a substantial infrastructure gap 20 years ago. It was impossible for us to make the necessary investment with the government budget. We had to produce different financial models to close this gap. PPP and BOT (Build-Operate-Transfer) arose from the need to rapidly close this gap,” Karaismailoglu said noting that 20% of transportation projects have been carried out with PPP.

Treasury and Finance Minister Nureddin Nebati stated that the Treasury plans green bond issuance for the first time this year towards the green, social, and sustainability fields. The first green bond issuance is expected to be completed in the first quarter of the year while the Treasury makes roadshow planning now, according to Deputy Treasury and Finance Minister Murat Zaman. Within the scope of the roadshow, London and New York will be visited.

Following the sharp losses, Turkey’s benchmark stock index ended yesterday at 5,207.67 points with an increase of 4.47%. Borsa Istanbul’s BIST 100 index gained 222.81 points from the previous close with a daily trading volume of TRY 94.1bn. The hike stemmed from the surge in banking stocks. The global equity markets have a positive course after the concerns over inflation were put on the back burner in the U.S. following the data released last week, according to analysts. They also said 5,100 points will be the support level and 5,250 points will be the resistance level for the BIST 100 index.

On the foreign policy side, President Recep Tayyip Erdogan and his Russian counterpart Vladimir Putin discussed steps in the project of turning Russian grain into flour in Turkey and sending it to African countries in need, according to a statement from the Communications Directorate. “The Black Sea grain corridor to allow ships to export goods from Ukraine and export of ammonia from Russia, along with the latest developments in the war in Ukraine, were also on the two leaders’ agenda,” the statement read.


The Central Bank will release the short-term external debt statistics for November (10.00 a.m.).

Turkish Statistical Institute (TurkStat) will announce house sales statistics for December (10.00 a.m.).

The Central Bank will release the Residential Property Price Index for November (2.30 p.m.).

Foreign Minister Mevlut Cavusoglu convenes with his Iranian counterpart Hossein Abdollahian, who pays a visit to Turkey, according to a statement from the Foreign Ministry. The ministers are expected to discuss current regional and international matters as well as bilateral issues.


>> The richest 1% grabbed nearly two-thirds of all new wealth worth USD 42tr created since 2020, almost twice as much money as the bottom 99% of the world’s population, according to a report by Oxfam International. During the past decade, the richest 1% had captured around half of all new wealth. 

>> Investments to be made by state-owned enterprises (SOEs) will jump 164% to TRY 163.3bn this year, according to daily EKONOMI. SOEs, which operate in the energy industry will come into prominence in terms of investments as nearly half of TRY 163.3bn investment will be made by them.

>> The central government budget balance posted a TRY 139.1bn deficit last year, according to Treasury and Finance Minister Nureddin Nebati. Budget revenues, meanwhile, totaled TRY 2.8tr while budget expenditures amounted to TRY 2.94tr in 2022.

>> The cost of the FX-protected TRY deposit accounts (KKM) for the Treasury totaled TRY 92.54bn last year, according to a statement from the Treasury and Finance Ministry.

>> The producer price index of agricultural products (Agriculture-PPI) jumped 151.03% in 2022, compared to the previous year, according to TurkStat. The index surged by 4.82% on December, month-over-month.

>> The total number of paid employees in the manufacturing, construction, and trade-services sectors surged by 7.1% from 13.84 million to 14.82 million in November, year-over-year, according to TurkStat.

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