Compensation receivables of eligible workers who started their retirement procedures after the regulation regarding the victims of delayed pension age (EYT) entered into force, led to a cash and payment rush in many enterprises. Some companies don’t put into process the resignations of their employees as the banks haven’t allocated loans yet, while others choose to pay the compensation amount in long-term installments, according to daily EKONOMI. The Credit Guarantee Fund (KGF) official stated that the delay was caused by the signature process of the relevant protocol. Sources, who also told that the procedures are at the completion stage, said the allocations will be made in a few days.
The migration from Istanbul to other provinces due to the exorbitance in housing prices and the cost of living exceeding the average household income has accelerated following the twin quakes that hit southern Turkey on February 6. The number of homes, which were put up for sale jumped 53.8% year-over-year in February in Istanbul, according to the real estate data analysis platform Endeksa. The number of houses for sale soared by 49% monthly. The low Compulsory Earthquake Insurance (DASK) payments also accelerated the sales trend. The rapid hike in the number of homes put up for sale slowed the upward trend in housing prices. The value increase in house sales remained at 6% in February.
Turkey is stepping up plans for a capital injection into state lenders to USD 5.5bn in a bid to encourage lending ahead of elections in May, according to Bloomberg News. It’s the latest attempt by President Recep Tayyip Erdogan to fire up economic growth with less than two months left before the May 14 vote. Turkey’s sovereign wealth fund (TVF) will boost the capital of TC Ziraat Bankasi AS by TRY 40bn (USD 2.1bn), while adding TRY 30bn each to Turkiye Vakiflar Bankasi TAO and Turkiye Halk Bankasi AS, according to an official with direct knowledge of the matter. TVF owns all of Ziraat and holds majority stakes in the other two lenders.
The United Nations Food and Agriculture Organization (FAO) stated that the twin quakes in Turkey caused USD 6.7bn in losses and damage to crops, livestock production, food stocks, and agricultural infrastructure and assets. FAO Representative in Turkey Viorel Gutu noted that the FAO develops a framework to prioritize needs and provide immediate support in the four most affected provinces of Hatay, Adiyaman, Kahramanmaras, and Malatya plus two districts in Gaziantep to address those challenges. Gutu said the organization would shift its focus from response to proactively maintaining, restoring, and improving agri-food systems and rural livelihoods in the medium to long term. He also added that the FAO would promote innovative approaches and invest in technology and climate-smart agriculture to achieve this.
No important data will be released.
>> The Agricultural Input Price Index surged by 95.99% in January, compared to the same month last year, according to the Turkish Statistical Institute. The index was up by 6.24% monthly.
>> The law on the establishment of the Disaster Redevelopment Fund, which was published in the Official Gazette, entered into force. The fund aims for a rapid recovery of the quake-hit provinces. The Board of Directors will consist of relevant ministers under the chairmanship of the Treasury and Finance Minister. The fund will determine the projects for which sources will be allocated, the number of sources, and expenditure programs.
>>Turkish Technic, the maintenance, repair, and overhaul arm of flag carrier Turkish Airlines, saw a record-high annual hike of 37% in its revenues, reaching USD 1.42bn last year. The company’s market share grew to 1.9% in 2022.
>> Russia is coordinating with Syria, Iran, and Turkey on a schedule for a meeting of their deputy foreign ministers, Russian Deputy Foreign Minister Mikhail Bogdanov told the state RIA news agency yesterday. A source from the Turkish foreign ministry told Reuters that a meeting planned for last week was postponed. “We haven’t agreed on anything yet, so there’s nothing to postpone,” Bogdanov was cited as saying.
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Our Tour d’ Horizon Columnist Fatih Ozatay addresses the necessity of the post-earthquake needs analysis.