The payment period for the restructuring of the debts to the public sector will be 48 months, according to Treasury and Finance Minister Nureddin Nebati. The Treasury and Finance Minister, who gave the details of the regulation announced by President Recep Tayyip Erdogan in a meeting in Izmir, stated that 90% of the hike, which emerged with the domestic producer price index (D-PPI) will be abandoned in cash payments with restructuring. Nebati also added that a discount of 25% will be given to the principal receivables for the cash payment of administrative fines and a 10% discount will be given to the cash payment of the tax base increase.
The business world representatives conveyed their demands at the meeting. Jak Eskinazi, Coordinator President of the Aegean Exporters’ Associations (EIB), demanded the usage of the successful world models to control inflation, implementation of inflation accounting, and no pressure on the value of TRY. Isinsu Kestelli, President of the Izmir Commodity Exchange (ITB), said the share of agriculture should be increased in the gross domestic product (GDP). The Aegean Chamber of Industry (EBSO) Chairman Ender Yorgancilar, meanwhile, emphasized energy prices being reduced to a competitive level.
The Istanbul Furniture Fair (IFF), which is considered the biggest furniture fair in Turkey and the third biggest furniture event in the world, has kicked off. 150,000 people are expected to visit the event where 1,000 companies have attended with 3,000 brands this year. The organization is expected to make a USD 3bn contribution to the sector’s 2023 target of USD 6bn. President of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) Rifat Hisarciklioglu and Istanbul Chamber of Commerce (ITO) Chairman Sekib Avdagic stated that the Turkish furniture sector should take a larger share of the European and U.S. markets, which have a total size of USD 100bn so that it is ranked among the top five furniture sectors in the world.
The regulation regarding the victims of delayed pension age (EYT) is expected to the submitted to the Parliament this week, according to Labor and Social Security Minister Vedat Bilgin. He also said the cost of EYT may hover around TRY 120-150bn.
On the foreign policy side, Turkey has indefinitely postponed trilateral talks with Sweden and Finland over their membership bids after weekend protests in Stockholm which saw a far-right politician burn a copy of the Quran outside Turkey’s embassy, according to Reuters. Swedish Prime Minister Ulf Kristersson told reporters that Sweden wants to restore dialogue with Turkey over the applications by Sweden and Finland to quickly join NATO.
DAILY AGENDA
The Capacity Utilization Rate (CUR) of the manufacturing industry dropped by 1.2 points to 75.3% in January, month-over-month, according to the Central Bank.
The confidence index increased by 0.6% in the manufacturing industry while it fell by 1.7% in the services sector and declined by 1.0% in the retail trade sector in January, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
The Real Sector Confidence Index surged by 3.9 points to 101.7 in January, as compared to December, according to the Central Bank.
Meanwhile…
>> The number of newly established foreign companies reached 5,695 in Antalya last year, according to Ali Bahar, Chairman of the Antalya Chamber of Commerce and Industry (ATSO). “1,061 foreign investors consisted of Russians followed by Germans and Iranians,” Bahar said.
>> The Treasury and Finance Ministry borrowed TRY 2.18bn in an auction held yesterday.
>> The constitutional amendment on the headscarf, which has been discussed for a long time, has been approved by the Parliament, according to daily EKONOMI.
>> The composite construction materials index was down by 0.01% to 69.51 in December, compared to the previous month, according to the Construction Materials Producers’ Association (IMSAD).
>> The number of registered road motor vehicles rose by 10.1% to 1.26 in December, year-over-year, according to TurkStat.
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