Funding problem turned into pneumonia

Workmanship Despite the increase in the exchange rate, the financing problem creates a pneumonia effect in the clothing sector, which fell in exports this year and lost the winter season in orders, mainly due to the increase in production costs. Noting that the increase in general expenses, especially the minimum wage, taxes and fuel, forced the sector’s cash, the sector representatives demanded that the credit faucets that were closed before the elections be opened.

Ramazan Kaya, President of the Turkish Garment Manufacturers Association

THE INDUSTRY MUST BE INFLATED

Noting that each brand has high stocks and is progressing with a 20 percent shrinkage, Turkish Garment Manufacturers Association President Ramazan Kaya said the biggest problem is financing and conveyed the situation to the ministries. Kaya said: “The garment industry has had pneumonia. We urgently need aspirin. Aspirin financial solution and money. We need to be floated. For this, credit faucets must be opened. The Minister said that they are going to double the resources of the Eximbank and there will be a relaxation in public loans, but there is no situation that affects us. Noting that spending has increased with tax increases, Kaya said: “The exchange rate has risen a bit. But with the tax and fuel oil increases, our expenses have increased even more. The energy and labor that we use is half in the countries in which we compete, ”he said.

Taxes carried the increase in the exchange rate

Şeref Fayat, President of the TOBB Ready-to-Wear and Garment Sector Assembly

Noting that the sector was caught in the trap due to the exchange rate that was maintained before the elections and credit lines closed and lost winter season orders, TOBB Ready-to-Wear and Garment Sector Assembly Chairman Şeref Fayat said: “We are trying to get summer orders using these rates in the last quarter. However, increases in taxes, labor and fuel add up to a terrible rise in everything. We are not able to calculate costs with a healthy exchange rate level, since the pieces of the economy are not yet settled. Job loss remains a risk,” he said.