Turkish Economy - News & Updates

[Somali-Turk]

russian tourists reach turkey-sign of normalized relations.
https://www.yahoo.com/news/first-russian-tourist-flight-since-crisis-lands-turkish-083346700.html

 

[Tshering22]

Still a good development that Turkey don't have infamous highest oil prices in the world tag anymore. Budget surplus is due to firm fiscal policy applied by Turkish government since 2012 when the deficits used to be more than 10%.
But I rest my case. Anything lower than 7% annual growth is a failure for Turkey.

Tell me something; do Turkish oil firms invest in oil and gas fields in central Asia? Like the four 'stans'? Or maybe in Indonesia?

I hear that you are also an oil-deficit country like we are. If so, can you tell some of the major foreign acquisitions made by Turkish oil and gas firms?

Thanks!

No we should not. But we must create alternatives.
I would agree if they would accept as next US-State.
But either EU nor USA will accept us as partners.
They see us only as a slave third world country.

Then make your own sphere of influence.

Maybe not with the Arabs but try to use Turkey's leverage as a balanced state with strong institutions with Indonesia and Malaysia and even the stans of Central Asia.

Turkey should dump the dreams of EU and pursue an independent policy.

Maybe even consider joining BRICS in the future since ties are returning back to normal and you have a great economic opportunity.

 

[CrimsonFury]

Tell me something; do Turkish oil firms invest in oil and gas fields in central Asia? Like the four 'stans'? Or maybe in Indonesia?

I hear that you are also an oil-deficit country like we are. If so, can you tell some of the major foreign acquisitions made by Turkish oil and gas firms?

Thanks!



Then make your own sphere of influence.

Maybe not with the Arabs but try to use Turkey's leverage as a balanced state with strong institutions with Indonesia and Malaysia and even the stans of Central Asia.

Turkey should dump the dreams of EU and pursue an independent policy.

Maybe even consider joining BRICS in the future since ties are returning back to normal and you have a great economic opportunity.

We may become an SCO member in 5 years.
I hope we do, to hell with EU

 

[Saithan]

Compulsory pension system to boost savings

A draft bill which revises the private pension system, dubbed BES in Turkey, so as to stipulate automatic coverage of all wage earners under the age of 45 to the system by their employers, was accepted at a parliamentary commission late Aug. 9 in a bid to boost the country’s savings, Reuters has reported.

Employers will include their employees in a pension system which is offered by a company authorized by the Treasury in line with the new regulation.

The contribution margin of the employee will equal some 3 percent of the actual premium yield. The cabinet will be able to double this amount, decrease it to 1 percent or put a fixed limit to the contribution margin, according to Reuters.

Finance Minister Naci Ağbal said the draft bill would enable the private pension system to spread and workers to increase their welfare during retirement.

“This draft will also create a diminishing impact on the current account deficit by raising savings,” he noted in a speech at the commission.

With the new system, which is planned to come online by next year, some 100 billion Turkish Liras (around $34 billion) of additional resources will be created over the next decade with the expected participation of some 6.7 million people in the private pension system, according to Ağbal.

The 25-percent state contribution to the payments will be preserved in the new system and an additional 1,000-lira contribution will be granted to those who remain in the system after a two month trial period, he added, as quoted by Reuters.

Workers who do not want to use the plan will be able to exit in this two-month period, and their savings will be returned to them. The private pension system currently has 6.4 million users and 56 billion liras of funds in total. This amount is around 2.5 percent of the country’s gross domestic product.

The low private saving rate has been long been the Achilles heel of the Turkish economy.

August/10/2016

source: http://www.hurriyetdailynews.com/co...gs--.aspx?pageID=238&nID=102695&NewsCatID=345

___________________________________________

It was about time this was introduced. In fact it should be mandatory that all salary payment from companies are directly to bank accounts and no payment must occur as cash.

 

[AUz]

Compulsory pension system to boost savings

A draft bill which revises the private pension system, dubbed BES in Turkey, so as to stipulate automatic coverage of all wage earners under the age of 45 to the system by their employers, was accepted at a parliamentary commission late Aug. 9 in a bid to boost the country’s savings, Reuters has reported.

Employers will include their employees in a pension system which is offered by a company authorized by the Treasury in line with the new regulation.

The contribution margin of the employee will equal some 3 percent of the actual premium yield. The cabinet will be able to double this amount, decrease it to 1 percent or put a fixed limit to the contribution margin, according to Reuters.

Finance Minister Naci Ağbal said the draft bill would enable the private pension system to spread and workers to increase their welfare during retirement.

“This draft will also create a diminishing impact on the current account deficit by raising savings,” he noted in a speech at the commission.

With the new system, which is planned to come online by next year, some 100 billion Turkish Liras (around $34 billion) of additional resources will be created over the next decade with the expected participation of some 6.7 million people in the private pension system, according to Ağbal.

The 25-percent state contribution to the payments will be preserved in the new system and an additional 1,000-lira contribution will be granted to those who remain in the system after a two month trial period, he added, as quoted by Reuters.

Workers who do not want to use the plan will be able to exit in this two-month period, and their savings will be returned to them. The private pension system currently has 6.4 million users and 56 billion liras of funds in total. This amount is around 2.5 percent of the country’s gross domestic product.

The low private saving rate has been long been the Achilles heel of the Turkish economy.

August/10/2016

source: http://www.hurriyetdailynews.com/co...gs--.aspx?pageID=238&nID=102695&NewsCatID=345

___________________________________________

It was about time this was introduced. In fact it should be mandatory that all salary payment from companies are directly to bank accounts and no payment must occur as cash.

Great step.

Turkey's low saving rate was one of the key structural threat facing the economy (other than budget deficit). Good to see government taking steps to tackle these problems.

 

[Saithan]

Turkey Unveils Draft Details of Planned Sovereign Wealth Fund

Turkey’s government took the first steps toward creating a sovereign wealth fund that officials say can be used to stabilize markets and fund infrastructure projects in the wake of a failed coup attempt.

Prime Minister Binali Yildirim sent a bill on the fund to parliament after his cabinet’s approval, according to a copy of the draft obtained by Bloomberg on Tuesday. The proposal allows the government to establish a wealth management company called Turkiye Varlik Yonetimi AS with a capital injection of 50 million liras ($17 million), to be financed from the state Privatization Fund. That company would create another entity, Turkiye Varlik Fonu, or Turkey Wealth Fund TVF, and other funds as it sees necessary, according to the draft.

While the draft didn’t include details on how the fund would be utilized, Yildirim told Bloomberg in a July 24 interview that it would have “tens of billions of dollars” at its disposal but wouldn’t threaten the country’s budget deficit. In another interview with Bloomberg, Finance Minister Naci Agbal said on July 28 that the fund might also be used to stabilize markets by buying Turkish assets if needed.
The plans come as Turkey has been trying to reassure investors and calm markets after a failed military putsch on July 15, which the government blames on followers of U.S.-based cleric Fethullah Gulen. Customs and Trade Minister Bulent Tufenkci said the economic damage from the attempt may be about 300 billion liras ($100 billion), according to Hurriyet newspaper.

The finances for the fund will be provided from the government’s asset sales program, cash surpluses from the state Privatization Fund and other state institutions, the draft said. Income from national and international capital MARKETS and money markets can also be used to finance the fund, it said.

Some assets from the government’s privatization program will be transferred to the fund’s portfolio, according to the draft. It would be exempted from regulations including antitrust law and Borsa Istanbul fees should any of the securities it sell be traded on the stock exchange.

source: http://www.bloomberg.com/news/artic...raft-details-of-planned-sovereign-wealth-fund

____________________________________________________

Let's hope that this fund is an independant entity out of reach of the government and president. I prefer the model Norway uses.

 

[Saithan]

Turkey saved $50 billion from low oil prices

Turkey has benefited from the decline in oil prices over the past three years, managing to save $50 billion in the import of oil over the same period.

Ata Yatırım, one of the leading financial institutions in Turkey, prepared a report on Turkey's oil imports. The report reveals through data collected that Turkey has been one of the biggest beneficiaries from the fall in oil prices over the past three years.

According to the report, the fall in oil prices since 2013 has decreased Turkey's total imports by $50 billion. Figures reveal that the current account deficit, which corresponded to 10 percent of Gross Domestic Product (GDP) in 2011, will drop to 4.4 percent in 2016 - which will offer a great opportunity for structural reforms.

Oil prices hovered around $100 and $120 per barrel for a long time before July 2014. However, they went into a decline with the expectations that supply would exceed demand, and stood at $57 at the end of 2014. The average price per barrel of Brent crude oil fell to $54 in 2015 from $99 in 2014. Because of the ongoing supply pressure and the gap between supply and demand, the average price of one barrel of Brent crude has stood at $42 since the beginning of 2016.

As an energy importing country that mainly purchases oil and natural gas, Turkey has been positively affected by the falling energy prices. Turkey's 12-month cumulative energy imports, which reached $60 billion in December 2012, gradually declined to $30 billion in June 2016. The ratio of energy imports to total imports dropped to 15.1 percent in June from the highest level of 25.2 percent in December 2012.

Especially due to the fall in energy prices, Turkey's 12-month cumulative current account deficit tumbled to $27 billion in May 2016 and its ratio to Gross National Product (GNP) was actualized at 3.9 percent.

Ata Yatırım specialists expect oil prices to continue to remain under pressure in the upcoming period. They estimate the price of crude oil will be around $45 per barrel and the ratio of current account deficit to GNP will stand at 4.4 percent in 2016.

source: http://www.dailysabah.com/energy/2016/08/11/turkey-saved-50-billion-from-low-oil-prices

 

[A friend]

Let's hope that this fund is an independant entity out of reach of the government and president. I prefer the model Norway uses.

Never! Independent entity = rotschild

 

[Yellow-place]

IMF gives 12 billion $ credit to Egypt! West like coups...

 

[A friend]

IMF gives 12 billion $ credit to Egypt! West like coups...

Do you know the interest rate?

 

[Azeri440]

IMF gives 12 billion $ credit to Egypt! West like coups...

12 billion loan while also massive loans for military procurement, its almost like I've seen this before (Greece).

 

[Yellow-place]

Do you know the interest rate?

It is a three year loan but i couln't find the interest rate...

12 billion loan while also massive loans for military procurement, its almost like I've seen this before (Greece).

Turkey had a huge economic crisis at 2002 after 28 February 1997 coap. I am waiting for the same thing for Egypt but they have much more support than Turkey from Saudi's and IMF (now they have experience from Turkey) but it is clear that Sisi can't manage the economy and maybe a bit later they will have a similar economic crisis.

 

[OguzSenturk]

They are already in economic crisis. At the beginning of this year, Interest Rate in Egypt was 8.75, right now it is 11.75 and it seems like it is gonna be bigger.

http://www.tradingeconomics.com/egypt/interest-rate

Also the government debt to GDP was %80,3 in 2012, it increased to %90,5 in 2014, and estimated figure for 2015 is more than %100.

http://www.tradingeconomics.com/egypt/government-debt-to-gdp

10 more years, and we will have a new Greece

 

[OguzSenturk]

Turkish Airlines Passenger Number increased %4,4 in first 7 months of 2016, relatively to first 7 months of 2015. 35.9 million total passenger in first 7 months.

http://www.bloomberght.com/haberler...yolcu-sayisi-ilk-7-ayda-yillik-yuzde-44-artti

 

[Deliorman]

That's still a growth but it is much lower than what it was expected for the company... But it's normal after the attack on the airport and the failed coup that closed all airports around the country. Still THY could grow in double digits like it does all the time.