Union of Chambers and Commodity Exchanges of Turkey

TOBB Chambers of Commerce and Industry, TOBB Chambers of Commerce, TOBB Chambers of Industry, TOBB Commodity Exchanges and TOBB Chambers of Maritime Commerce Joint Council Meeting was held with the participation of Treasury and Finance Minister Lütfi Elvan.

Hisarcıklıoğlu stated that they attach great importance to show that the 7 percent growth recorded in the first quarter of the year has been achieved in place of the support given to the private sector. In addition, we think that this year we will reach record levels in both industrial production and exports.”

- “Support steps should continue for sectors which didn’t achieve sufficient growth”

Pointing out that all these developments increase their morale and their enthusiasm to work, Hisarcıklıoğlu noted:

“On the other hand, we are aware that this situation is not reflected equally in all sectors, and that not everyone benefits equally from the abundance of growth. We want to continue the support steps for our sectors, especially the services sector, which have been most adversely affected by the pandemic and have not received enough share of the growth. In order to sustain strong growth, we also think that the reduction in loan interest rates and inflation, the stability of exchange rates, can be achieved again, as we have done in the past.”

- “With exchange rate and price stability, financing costs can be permanently reduced”

Hisarcıklıoğlu stated that they know that great importance is attached to financial discipline and financial stability, and stressed that they support this as the Turkish private sector.

“We also believe that you will continue policies that support the business world, production, investment and the employment market,” he said, noting that they also anticipate that financing costs can be permanently reduced by ensuring currency and price stability.

- “It is worth restoring KGF to provide continuous support to SMEs”

While taking steps towards stability, Hisarcıklıoğlu pointed out that plans should be made for sustainable growth and high value-added investments in 2022 and the future, and noted that the global economy is undergoing an important transformation process.

Hisarcıklıoğlu said that both the transformation of the global supply chain after the pandemic and the steps taken within the framework of the green deal and climate change include important opportunities and threats.

“As Turkey, we need to take the necessary steps quickly in order to position our country and our business world well in this new period,” Hisarcıklıoğlu said, explaining that for this reason, it is necessary to further tighten the public-private dialogue and to be among the winning countries in this process with common purpose.

Hisarcıklıoğlu stated that they see the revival of Breath Credits as a very valuable step, “I see benefits in the new period in a structure that provides continued support to SMEs with much more focused and investment-oriented programs.”

- Minister of Treasury and Finance Lütfi Elvan

Treasury and Finance Minister Lütfi Elvan noted that the global economy witnessed one of the most severe contractions of the post-World War II period last year, noting that the health of both societies and economies has been severely damaged by the pandemic.

Stating that the Covid-19 pandemic has accelerated a number of structural transformations in the global economy, Elvan said that digitalization, green transformation and reshaping of value chains will be the most important agenda items of the coming period.

Minister Elvan stated that they will also change the collateral policies they provide through KGF, and that one of the issues that KGD will address when providing guarantees will be the guarantee of loans that will go to the right place and the right work.

Elvan stated that new support mechanisms will be created within the scope of KGF to increase access to financing and address collateral shortages of micro- and SME scale companies.

“In addition to the support we provide to our existing exporters through Eximbank, we are designing a mechanism to enable the emergence of new exporters. By July, two new KGF-backed mechanisms will be implemented, and I want to give the good news. First, we will provide long-term loan support in regions 5 and 6 with KGF guarantee to investments that prioritize exports. Secondly, in order to increase the contribution of small companies to employment and reduce liquidity shortages, we will also provide access to credit with KGF bail for each person they employ. Social insurance and unemployment insurance premiums paid by the company for 12 months for each person added to employment will be deducted from the loan interest balance as a contribution to the company.”

- “We will take important steps in the field of tax”

Elvan said that they have created a very strong reform program in the fields of economy and law in order to be best prepared for the post-Covid-19 period, and that they are working closely with relevant NGOs, especially TOBB, in determining the policies to implement.

Referring to the progress of the Reform Package, Elvan said that 31 of the 35 action titles they put in place at the end of June have been completed.

“We have finalized the technical work of 2 of the remaining 4 actions. In fact, both of these studies have been completed. For the two actions, we look forward to the appreciation of our Grand National Assembly. Thus, we have successfully completed the actions we envisaged for the first half of the year.”

Elvan stated that there are two messages sent by the global pandemic. “The first is to be able to see change and adapt. With the outbreak, Turkish industry has proven its mettle. We quickly adapted to changing conditions and became our hope even in the most difficult times with their production and innovation capabilities.”

Noting that the other message of the outbreak is the need for the best risk management, Elvan said, “It is useful for each business to apply risk management in the most effective way, regardless of scale.”

The council meeting continued closed to the press after Minister Elvan's speech.