Nabati EYT Statement: 40 Percent Will Withdraw

The Minister of Treasury and Finance, Nureddin Nebati, made statements on the agenda of the television program he attended.

EYT EXPLANATION

Pointing out that the budget had an interest surplus after a long time, Nebati continued as follows;

* Over the past 5-6 years, the budget has not given a surplus of interest. The future of EYT was very clear, we took precautionary measures.

* Close to 5 million EYT members will have the right to retire. 40% of them will be able to retire this year.

*We have created the source in the budget for EYT, we are comfortable. EYT is a burden on the budget now, but meeting this burden needs to be well calculated and your infrastructure built accordingly.

*This is the most important point. I won’t give numbers, but we started the new year by creating the EYT feed.

LOSS OF VALUE OF TL

Regarding the depreciation of the Turkish lira against the dollar, Nureddin Nebati said: “There has been a currency attack in the last 3 months in 2021. When you say exchange rate in Turkey, it is dollars. Therefore, all members of society carefully follow any movement up or down in the dollar exchange rate. This follow-up is at such a sensitive point that although these fluctuations that occur in the world situation are considered normal, it is questioned why a work of this type is being carried out in Turkey”.

“IF VALUES TL…”

Recalling that the Turkish lira has been losing value against the dollar since 2017, Nebati continued as follows:

*This habit has also been formed, I understand it from your questions, what are you doing to maintain it? Now, the Turkish lira has lost value against the dollar since 2017, so it has to be looked at in real value terms.

*When you make a comparison between the Turkish Lira and the dollar in Turkey, the Turkish Lira reached its most valuable point in 2013, that is, it reached a power that exceeded 110% in the IPC index.

*What does this mean? In Turkish, the more valuable the Turkish lira is, the more it will import abroad. You don’t need to produce in Turkey, because your money is very valuable, you can sell it.

* It slows down the industry, stops it and over time creates a result like unemployment. If you make the Turkish lira lose a lot of value, the opposite will happen. But it has to be a sweet spot.

* At the end of 2021, the value of the Turkish lira fell to 47% on a CPI basis, i.e. it lost a lot of value. This optimal point is the level of the exchange rate where all these external and internal factors come together. (AA)