President Recep Tayyip Erdogan stated after the cabinet meeting that three new housing finance packages will be implemented in order to protect the residential sector against accidental fluctuation.
The first package will provide a loan of up to TRY 2m with an interest rate of 0.99% for those buying a single house for the first time.
The second package will cover new and second-hand houses. Accordingly, homes will be included in this package on the condition that they will be bought by exchanging foreign exchange (FX) deposit accounts that were opened before April 1 or by selling physical gold to the Central Bank. The amount to be exchanged or to be sold must correspond to at least half of the value of the house to be purchased. The package contains a residential loan with an interest rate of 0.89% and a maturity of up to 10 years.
As part of the third package concerning the construction sector, the government has allocated TRY 20bn as of May for projects in which 50% of homes haven’t been sold. The companies making a commitment to keep the prices steady for a year on their websites will benefit from the package. The third package provides a certain amount with a maturity of 36 months.
President Erdogan also attended the 32nd-anniversary commemoration of the Independent Industrialists and Businessmen Association (MUSIAD). Erdogan said the exorbitant price surge is not related to economic realities. “The number of Turkish startups with a valuation of USD 1bn and above has reached six. Our employment has exceeded 30 million. Turkey, whose exports barely amounted to USD 36bn within 365 days 20 years ago, now can reach this figure within 30 days,” Erdogan noted. Stressing that Turkey has determined 919 high technology products to be manufactured domestically, Erdogan added: “We’ve decided to support 31 projects that will bring great gains to Turkey. We’ll gradually make Turkey become a market of critical technologies.”
During the event, MUSIAD organized the “Turkey’s Power Awards” ceremony. Daily DUNYA Chairman and CEO Hakan Guldag won the “Press’ Power Award”. The award is granted to people and institutions that shed light on Turkey’s progress in line with its future objectives, provide constructive criticism and objective ideas and write about the economy.
Regarding the money market, USD/TRY, which has hovered around 14.50-15.00 around for two months, hit 15.13 yesterday. It saw similar levels on December 20, 2021, when FX-Protected TRY deposit accounts stepped in. The previous surge was 14.99 at the beginning of the Russia-Ukraine war on March 11. The interest rate hike of central banks across the world, which triggered avoidance of risk, plays a role in USD appreciation, according to the economic world. Analysts say 14.76 and 14.35 will be the support level and 15.25-15.40 will be the resistance level, in technical terms, for USD/TRY.
Turkey’s benchmark stock index also rose 0.28% to 2,465.71 points yesterday. After starting the day at 2,462.96 points, the BIST 100 index climbed 6.6 points from Friday’s close of 2,458.72 points. Ending the day with a market value of around TRY 2tr, the index posted a daily trading volume of TRY 38.9bn.
The Turkish Statistical Institute (TurkStat) will release labor force statistics for March (10.00 a.m.).
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) will release Industry Capacity reports for April (10.00 a.m.).
The Central Bank will release net FX position of non-financial companies for February (2.30 p.m.).
The Parliament will discuss the legislative proposal on the Turkish Penal Code and the amendment of some laws (3.00 p.m.).
The Treasury and Finance Ministry will reissue a 6-year (2,317 days) maturity semiannually floating rate note, issue a 10-year (3,640 days) maturity semiannually fixed coupon bond and direct sell 2-year (728 days) maturity lease certificate.
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