President Recep Tayyip Erdogan spoke over the phone with his Russian counterpart Vladimir Putin to discuss bilateral relations and regional developments including Russia’s invasion of Ukraine, according to a statement from the Communications Directorate. President Erdogan said Turkey is ready to play a role in a possible observation mechanism following the first meeting with representatives of Russia, Ukraine, and the UN in Istanbul. Erdogan also added that there is a need for steps to minimize the negative effects of the war and re-establish a groundwork for peace. Touching on developments in the northern Syria border region, where attacks by the terror group YPG/PKK on civilians and neighboring Turkey continue, Erdogan noted that a 30-kilometer (18.6-mile) safe zone stipulated under 2019 pacts with the US and Russia was never established.
President Erdogan also held a phone call with his Ukrainian counterpart Volodymyr Zelensky to discuss the recent developments in the Russia-Ukraine war. Erdogan said Turkey has made every effort to date to continue negotiations between Russia and Ukraine and is ready to provide any needed help, including mediation. He also emphasized that he attaches importance to the project to establish a safe corridor for the export of Ukrainian agricultural products by sea.
Turkey’s benchmark stock index was up by 3.62%, ending yesterday at 2,527.15 points. Borsa Istanbul’s BIST 100 Index gained 88.31 points from Friday’s close of 2,438.84 points. The daily trading volume amounted to TRY 47.1bn. Analysts stated that 2,390 points will be the support level and 2,550 points will be the resistance level for the BIST 100 index, in technical terms. They said the global positive atmosphere has been carried to the new week after data released in the U.S. showed that the peak of inflation has been left behind. However, they also noted that the data that will be announced this week, including non-farm employment and the Beige Book, will be critical in terms of concerns over inflation and growth that have been put on the back burner for now.
The Banks Association of Turkey (TBB) held its 65th Ordinary General Assembly with the attendance of Treasury and Finance Minister Nureddin Nebati, TBB Chairman Alpaslan Cakar, and Mehmet Ali Akben, Chairman of the Banking Regulation and Supervision Agency (BDDK). Touching on inflation, Treasury and Finance Minister Nebati said that inflation is driven by a supply-driven cost increase and that the deterioration in the economic outlook is temporary. Regarding the current state of the banking sector, TBB Chairman Cakar said risks have maintained a modest course while loans are growing. He also noted the regulations have been crafted using international standards. BDDK Chairman Akben, meanwhile, said 82% of the all loans are used by the real sector which contributes to production. “However, this challenging period necessitates our banks make more contributions,” Akben added.
The Turkish economy grew by 7.3% in the first quarter of the year, compared to the same quarter of the previous year, according to the Turkish Statistical Institute (TurkStat).
Exports rose by 24.6% to USD 23.36bn and imports increased by 35% to USD 29.48bn in April, compared to the same month last year, according to TurkStat. The foreign trade deficit jumped 98.5% to USD 6.1bn in the same period.
The Services Producer Price Index (S-PPI) climbed by 83.27% in April, year-over-year, according to TurkStat. The S-PPI also surged by 4.95% on a monthly basis.
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The total assets of the Turkish banking sector consisting of 57 public and private banks, exceeded the threshold of TRY 9tr while the sector’s loan volume exceeded TRY 5tr last year, according to a report prepared by the audit, tax, and consultation services company KMPG Turkey.