Public banks should not grant loans with instructions

Togg The first orders were received and production started. The granting of credit facilities following pre-order applications provoked a reaction and generated controversy. Former Economy Minister Ufuk Söylemez noted that Togg’s production start is positive, but the production number cannot be high at this stage. Noting that applicants were given a delivery date months later, or even next year, Söylemez said the 36-month loan campaign with an interest rate of 0.99 percent for the price of 50 percent announced for Togg was also problematic. Saymez made the following assessment:

UNFAIR COMPETITION

“Publicly owned banks cannot grant loans and establish interest with instructions and political orders. Managers who do this have legal and financial responsibilities. Such as merchant-farmer rulers, etc.
If you want to make subsidized loans available to segments of society or certain sectors, you must issue a ‘tax forfeiture’ decree for this.” Emphasizing that Togg’s owning shareholders are individuals and legal entities, Söylemez said: “Togg is not a public company or SOE. It is unfair competition to transfer cheap and privileged resources from public resources to Togg owners.

Togg’s local fare is low

ToggUfuk Söylemez said that according to the information from the Turkish Ministry of Industry and Commerce, the localization rate is forecast to be around 51 percent and this rate will increase in the coming years, “However, in 2022, the average domesticity will rate of cars and commercial vehicles produced in Turkey is 55.96 percent. So this is more than the Togg locality rate,” he said.