Credit tap closed, reaction of the president of TOBB

Organized by the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the “TOBB Turkey Economic Council” started at the TOBB Twin Towers with the participation of Vice President Cevdet Yılmaz and the ministers and heads of chambers and commodity exchanges relevant.

Noting that experienced names in the economy give them a moral boost, Hisarcıklıoğlu said, “We believe that together we will build the economy on a stronger foundation.” he used the phrase.

Hisarcıklıoğlu noted that he wanted to share some topics that stand out as someone who constantly travels in Anatolia and listens to companies and industries, and continued his words as follows:

“Our companies in the real sector have been experiencing great difficulties in accessing financing of late. In particular, the fact that loans to SMEs do not increase in real terms has a negative impact on the country as a whole and the sectors with a domino effect. If we want the abundance of growth to be reflected in all segments, we must support our SMEs and ensure that they have access to suitable financing opportunities”.

Hisarcıklıoğlu said: “Secondly, we have the tightest labor market, including the Scandinavian countries, in the OECD tightness index.”

“Everybody suffers from that, too. Our legislation almost discourages entrepreneurs who can generate more employment. It also prevents our citizens from getting more job opportunities and earning more. Working life must be seen with an approach that rewards employment, not punish it”.

‘THE PROBLEM OF THE INVESTMENT PLACE MUST BE RESOLVED’

Hisarcıklıoğlu, who also called for the solution of the investment location problem to pave the way for investments, used the following statements:

“The share of industrial investments in the country area is 4 percent in Germany, 2.8 percent in Italy, even the OECD average is 2.4 percent. Our industry, on the other hand, is only 3 per thousand, our industry operates in one tenth of its competitors in the world, but we are able to survive in global competition. A master plan must be prepared to at least double the capacity of industrial land, and financing solutions for land purchase and building construction must be developed. Therefore, our industrialists should make use of their limited capital by investing in more productive areas.”

Drawing attention to the need to plan a new industrial basin in the Central Anatolian-Eastern Mediterranean belt, Hisarcıklıoğlu said, “With this new industrial basin, we can reduce the load on Marmara and open space in Marmara for high-tech investments. ” he said.

In addition to Vice President Yılmaz, Minister of Finance and Finance Mehmet Şimşek, Minister of Commerce Ömer Bolat, Minister of Labor and Social Security Vedat Işıkhan, Minister of Agriculture and Forestry İbrahim Yumaklı, Minister of Industry and Technology Mehmet Fatih Kacır, Minister of Energy and Resources Naturales Alparslan Bayraktar and the Head of Strategy and Presidential Budget İbrahim Şenel.

GROWTH IN COMMERCIAL LOANS IN TWO YEARS

On commercial loans, which were doled out at low interest rates before the election, both interest rates doubled and loan growth halted after the election.

The 13-week annualized and exchange-adjusted growth rate in the volume of commercial loans, which approached 50 percent in April before the election, bottomed out over the past two years at 3.7 percent in the week ending August 4.

Average business loan rates also hit a 5-year high after November 2018 at 30.72 percent last week.

Although interest rates rise, they remain below the rate of inflation, while the business world complains that it cannot find loans, even at high interest rates. (AA-SPEAKER)