There is a lot of stress in the markets.
As Turkey prepares to enter the elections with great economic pressure and new regulations underway, the business world, which finds it difficult to do business with the level of the exchange rate and cannot access financing, drew attention to the fact that the blockade in the market has created an unpredictable process. Pointing out that the export balances were shaken and maturities were extended, the representatives of the sector gave the message that “the box does not return to the market.”
they are under pressure
Noting that all segments, including financial institutions, are focused on the electoral process and its results, TOBB Apparel and Apparel Sector Assembly Chairman Şeref Fayat stated that the sectors could not see their way and could not think of investments. Noting that the markets are under great stress, Fayat said:
“Everyone is nervous. The markets are tense. It is difficult to answer the question of how this difficulty in accessing cash flow and financing will affect the markets, but the markets are under great stress. We don’t have a job because exchange rates are already suppressed. We’re having a hard time managing cash flow because we don’t have a job. We cannot access financing. Although we have access to financing, there are high costs. We cannot see forward and we cannot think about investments”.
BANKS ARE REQUIRED
Noting that banks are constantly subject to regulations and that uncertainty creates problems in accessing cash, Fayat said: “They try to reduce the demand for lottery by opening baskets and holding all kinds of foreign currency coming into Turkey. Banks don’t want to make loans because they don’t know the costs. Those that are used are also short-term and the cost is very high. It is stuck at the point where economic policy and interests will be determined after the election,” he said.
Interest rates are volatile, not cash
Noting that there is stagnation in the market in terms of investment and borrowing, Turkish Shoe Manufacturers Association President Berke İçten stated that 3-month floating rate loans are available. “It is also clear that a tighter monetary policy has been implemented compared to the pre-pandemic period. Obviously, the reflection in the market was negative. It would be correct to say that money is not coming back into the market at this time. Seriously, there’s no cash on the market right now,” he said.
Berke Sincerely
one – Sectors struggling with orders due to currency pressure are experiencing lost revenue and profits.
2- Banks are reluctant to give loans because they are unaware of post-election economic policy and interest.
3 – Business representatives point out that the flow of cash in the market has almost completely stopped.
4-TL rediscount credits are at the minimum level. The interest rates on short-term loans are also very high.
5 – As tensions increased in the markets where the exchange rate and interest rates were locked, investments came to a halt.