The Union of Chambers and Commodity Exchanges of Turkey (TOBB) Sector Assemblies joint meeting was held with the attendance of the Central Bank Governor Sahap Kavcioglu and TOBB President M. Rifat Hisarciklioglu. The TOBB President, who made the opening speech, emphasized the real sector’s financing problem. Hisarciklioglu said access to finance has become difficult and complaints by companies about the issue have increased in all cities and districts throughout the country as of late.“SMEs experience the biggest difficulty. Apart from the hike in the interest rates charged for loans, it is reported that the loan limits are reduced and there are problems in loan usage,” the TOBB President noted.
He also highlighted that some banks charge a 30%-50% interest rate for commercial loans while others don’t provide loans at all. Stressing that the other problem is the maturity of loans, Rifat Hisarciklioglu added: “Finding long-term loans with a fixed interest rate, which are necessary for investments, has gradually become difficult. Moreover, complaints about the decline in the usage of the Central Bank’s rediscount credit have increased. The real sector desires stability in the loan market.” Hisarciklioglu also said the loan need for investment and operation capital due to high inflation and cost increase has risen.
Central Bank Governor Sahap Kavcioglu addressed criticism about the access to rediscount credits by stating the rate of increase. Kavcioglu also said his speech about stockpiling at the Istanbul Chamber of Industry meeting last week was misunderstood. “I didn’t make an allusion or accusation regarding the stockpiling. I was referring to those who buy foreign exchange through TRY loans provided with a low-interest rate,” Kavcioglu noted.
Turkey’s benchmark stock index Borsa Istanbul fell by 0.33% to end at 2,647.59 points yesterday. Borsa Istanbul’s BIST 100 index lost 8.73 points from the previous close of 2,656.32 points with a daily trading volume of TRY 44.2bn. Global equity markets saw a downward trend after the Purchasing Managers Index (PMI) data announced yesterday strengthened the recession expectation, according to analysts. They said the news regarding the U.S.-China tension has also raised risk perception. Analysts also stated that 2,540 points will be the support level and 2,670 and 2,700 points will be the resistance levels for the BIST 100 index, in technical terms.
The first grain-laden ship that departed the Ukrainian port of Odesa for Lebanon under a deal to unblock Ukraine’s agricultural exports reached the Black Sea entrance of the Istanbul Strait yesterday. Sierra Leone-flagged cargo ship Razoni, loaded with corn, departed from the Ukrainian port of Odesa on Monday and reached the entrance of the Istanbul Strait from the Black Sea and anchored at its assigned location, the National Defense Ministry tweeted. It also said the joint inspection of the ship, which began on Monday for over 26,500 tons of corn, will begin today.
The Consumer Price Index (CPI) rose by 2.37% in July, compared to the previous month, according to the Turkish Statistical Institute (TurkStat). The annual inflation reached 79.60% in July, hitting a 24-year high.
The domestic producer price index (D-PPI) jumped 144.61% in July, year over year, according to TurkStat. The D-PPI increased by 5.17% on a monthly basis.
The Banking Regulation and Supervision Agency (BDDK) will announce the banking sector statistics for June (2.00 p.m.).
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The International Monetary Fund (IMF) upgraded Turkey’s economic growth to 4% for 2022 and 3.5% for 2023. Our Tour D’Horizon Columnist Fatih Ozatay analyses what these figures mean for the Turkish economy.