Made in Turkey June 2020 by istmag

Monthly Economic Newspaper

June - 2020

World Bank extends loans of 250 mln euros for Turkish exporters

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“Made in Türkiye” spreads goodness to the world

he World Bank’s Board of Executive Directors has approved a partial credit guarantee in the amount of 250 million euros (around $273 million) to the Export Credit Bank of Turkey (Türk Eximbank) as part of the Turkey LongTerm Export Finance Guarantee Project, according to a statement. Page4

DHL Express, has undertaken the project’s logistics support, will deliver kits to 10,000 destinations in more than 60 countries. DHL Express will bring Turkey’s goodwill message to a much wider audience with the #GoodnessFromTürkiye tags to be added to every international shipment for 2 months and raise awareness by carrying the same message on its domestic courier vehicles. TIM, continuing to work non-stop at a time when the Covid-19 epidemic hit international trade drastically, has brought the“ national production mobilization” it launched into an international dimension. International promotion and solidarity work will be carried out with the #GoodnessFromTürkiye project implemented by TTG, active within TIM. Page4

IKMIB determined to increase its export volume in line with the normalization process

IKMIB leads the way... ‘Turkey may earn $20B in chemical exports in 2020’

I Adil Pelister, the Chairman of Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB)

Ankara eyes sustainable, balanced trade with Beijing

Turkey sent aid to at least 57 countries to fight virus

urkey has so far delivered aid to at least 57 countries around the globe to help their fight against the coronavirus out-

break. “We provided medical equipment support to 57 countries,” Turkish Foreign Minister Mevlut Cavusoglu said on Monday. While fighting the virus domestically with weekend lockdowns, quarantines and social isolation, Turkey continues to supply medical aid to many countries.

the pandemic affected the sector positively, according to Adil Pelister. The chemical sector’s exports to EU countries account for 50% of the total, he added: “With the normalization in the EU, we will see a significant increase in our exports.” The novel coronavirus, which first appeared in China last December, has spread to 188 countries and regions across the world, affecting several sectors deeply. The virus has killed nearly 386,800 people worldwide, with total infections reaching over 6.55 million and more than 2.83 million people having recovered from

Turkey’s central bank pledges measures to support post-pandemic recovery

Ruhsar Pekcan Türkish Trade Minister

urkey wants to make its trade with China more sustainable and balanced by enabling high value-added exports, Trade Minister Ruhsar Pekcan said. Pekcan made the comments after holding a phone call with her Chinese counterpart Zhong Shan. Page 3

STANBUL-Turkey could make a revenue of $20 billion in chemical exports this year, almost the same of $20.6 billion last year, despite the pandemic. The chemical sector has been facing a difficult period due to the pandemic but the normalization process started as of June, Adil Pelister, the Chairman of Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB), told a webinar. The expansion will start in the sector and it will see the same performance with previous years, he said. The government’s steps to cushion the economic fallout of

Murat Uysal Central Bank of the Republic of Turkey

Turkey’s central bank will rapidly take decisions needed by the country and the economy to counter the fallout from the coronavirus outbreak and to support the post-pandemic recovery and will implement them in an effective manner, the bank’s governor said. “The monetary measures we have taken are aimed at supporting production and financial stability so that this period can be overcome with minimal damage,” Central Bank of the Republic of Turkey (CBRT) Governor Murat Uysal told the 12th International Conference on Economics and Finance. Page7

the disease, according to figures compiled by the US’ Johns Hopkins University. Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB) is a professional establishment which deals with all of the export activities of its members. It was established in 1991 and it has around 7750 members. The major target of the Association is to increase the export volume of Turkish Chemicals and Chemical Products Sector. Page5

Turkey’s 1st domestic car plant gets environmental green light

urkey’s Environment and Urbanization Ministry approved the Environmental Impact Assessment (EIA) for the construction of Turkey’s first domestic car plant. The Automobile Joint Venture Group (TOGG), a consortium of Turkey’s five major companies

that joined forces to manufacture the domestic car, announced on Twitter that the factory has successfully completed the EIA. The assessment consists of information on the potential environmental and social impacts of building a smart plant in the Gemlik district of the northwestern province of Bursa. Page3

Turkish automotive industry ready to meet growing demand

emand for automobiles has steadily risen since early June following the introduction of low-interest loan packages from public lenders and the easing of strict lockdown measures in Turkey, but supply shortages are forcing potential buyers to walk away empty-handed.

JPMorgan, EBRD to support Turkish businesses

Car dealerships across the country have reported that domestic demand, which has been deferred since the last quarter of 2019, began to revive after the country started to reopen but car stocks are still limited due to global supply chain disruptions caused by the coronavirus pandemic. Page5

Nearly all of Turkey’s tourism facilities to reopen in July

ll the tourism facilities in Turkey which were planned to be reopened as part of the normalization process are expected to open their doors in July, Culture and Tourism Minister Mehmet Nuri Ersoy said. Speaking to CNN Türk, Ersoy commented on the revival of tourism in the country, noting they regularly conduct meetings with counterparts in other countries who find Turkey’s health tourism certificate program very successful.Page 6

Turkey, India only G-20 countries to post growth in Q1, OECD says

Turkey: Agricultural, animal production hub beyond region

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Turkey to back import-cutting investments via central bank credit package Turkey will continue to support investments that are set to increase exports while decreasing imports, Treasury and Finance Minister Berat Albayrak said, speaking of the investment registered advance credit package announced by the Central Bank of the Republic of Turkey (CBRT). Citing a recent announcement that the CBRT would start reallocating its Turkish lira rediscount credits for firms, Albayrak said a total of TL 400 million ($59 million) would be provided to companies with a maximum maturity of 10 years. By the end of March, the bank announced that Turkish lira rediscount credits of up to TL 60 billion would be extended to exporting and FX-earning services to contain the adverse effects of the global uncertainty caused by the coronavirus pandemic. The central bank said the country’s

Berat Albayrak Turkish Treasury and Finance Minister banking system had so far effectively met the credit needs for working capital. The CBRT, in line with government efforts to reduce Turkey’s dependence on imports, decided to reallocate TL

20 billion of the limit of Turkish lira rediscount credit facility as advance loans against investment commitment for more effective utilization to support investments in select critical sectors.

The remaining TL 40 billion limits of Turkish lira rediscount credits will continue to be extended through Turk Eximbank with an allocation of TL 20 billion, as well as through stateowned and other banks, with allocations of TL 10 billion each. The companies that increase employment, contribute to the current account balance and carry out high added-value production will be offered with the support credit in Turkish lira with a fixed interest rate, the minister noted. At first, loans will be extended through the Development and Investment Bank of Turkey. Other development and investment banks may get involved in the facility later. According to a statement released by the Development and Investment Bank of Turkey, the bank aims for as many companies as possible to bene-

fit from the support scheme which is bounded by TL 400 million for each company. With the support package, the bank, in line with the targets of sustainable development in Turkey, provides loans for companies that support exports and reduce imports, decrease foreign dependence and reduce the current account deficit while increasing employment, productivity and investing in high value-added production, the statement noted. The loan, which is open to the use of firms that have an Investment Incentive Certificate and will invest in priority sectors, protects the investor against the possible insecurities caused by fluctuations in the exchange rate with a maturity of up to 10 years and with a fixed interest rate. The loan interest rate for banks will be 150 basis points lower than the bank’s

policy rate – the one-week repo rate. İbrahim Öztop, general manager of the bank, whose views were included in the bank statement, noted that the pandemic, that is challenging Turkey and the world, has recalled the importance of development banking in such exceptional periods. We provided new financial instruments that will support the real sector even stronger with the Turkey Development Fund, he said, noting: “We stepped into the year 2020 with a strong motivation to lead to superior investment in employment, import substitution and domestic investment.” “The value of development banking, which contributes to the formation of country economies that are robust and resistant to unforeseen risks, has become even more evident in these difficult days,” he noted.

Turkey: Agricultural, animal production hub beyond region Turkey is an agricultural and animal production hub in the region and even for countries beyond, with its high production capacity and food security standards, according to Orhan Özçatalbaş, a professor at Akdeniz University’s Agricultural Policy and Extension Department. “The country has the largest agricultural revenue in Europe and is second on a global scale,” Özçatalbaş said. He said the pandemic increased the importance of food and supply security and the world started to discuss agricultural production’s efficiency and capacity. Food security and safety topics will remain on the global agenda because the world’s population is expected to reach 10 billion by 2050 and food production should

tables, fruits and animal products, and it is a net agricultural-exporter with around $20 billion exports annually,” he noted. And it can increase its agricultural capacity by using technology correctly. FAO should eliminate hunger, poverty Regarding the UN’s Food and Agriculture Organization (FAO) during the pandemic, he said it should raise efforts to reach its targets, including zero hunger. As an organization with a large capacity and human resources, FAO will put the most effective and functional methods into action as soon as possible to eliminate hunger and poverty, he noted. Its first concrete work should be to eliminate nonhuman consumption habits, he stressed. “Because there is no guarantee that

increase by 70% to meet needs, he said. “Turkey sees food safety and security field as the most strategical area, and it is a leading country in supplying security globally.” Özçatalbaş said Turkey implements good agricultural practices to ensure safety in exports and domestic consumption. Self-sufficiency Turkey has an advantage with its high agricultural production capacity, domestic labor force, high equity capital ratio, active farmer families, new technologies, high experience, qualified human power and high logistic standards, he said. It increased its raw vegetable and fruit exports 24% even during the pandemic in the first quarter. “Turkey is a self-sufficient country in terms of cereal products, vege-

COVID or similar virus derivatives will not reappear, in Wuhan region or other similar regions that do not have decent living standards,” he said. The UN should use its organizations – FAO and the World Health Organization (WHO) – more effectively to fulfill its responsibilities to ensure rights of health and life worldwide. International sanction and intervention are possible against a global epidemic threatening humanity to eliminate or solve the source of the problem. The WHO and FAO should make efforts to turn back to the old normal instead of determining conditions of the new normal, he said.

“Our Expectations from Turkish Exporters are Beyond the Normal” Turkish Exporters Assembly (TİM) announced the provisional foreign export data for May. In May, Turkey's export was $9 billion 964 million, decreasing 40,9 percent. Exports in the last 12 months decreased by 8,4 percent to $165 billion 732 million.

Ismail Gülle, the Chairman of (TIM)

hairman of TIM Ismail Gülle pointed out that Germany’s Export numbers faced the biggest decrease in the last 30 years in April, Japan’s Export numbers also faced the biggest decrease after the financial crisis in 2008. Mr.Gülle also said “With the normalization process and the following months, our expectations from Turkish exporters are beyond the normal.” Virtual trade delegations to be continued with India and South Korea

Gülle also said: “We will continue to hold virtual trade delegations with the coordination of Trade Ministry, within the scope of the ‘next generation trade diplomacy’ activities. We organized two virtual Trade delegations to Uzbekistan and Kenya in the past weeks. We plan to hold two more delegations to India on 15th-19th of June and South Korea on 22nd23rd of June.” Leader exporter sector was “Automotive Industry” in May In May, Export in “Automotive Industry” was $1 billion 203 mil-

lion, “Chemistry Products” followed automotive with $1 billion 177 million and “Clothing” was the 3rd sector in monthly export with $840 million 203 thousand. In May, according to same month in 2019, Automotive export decreased by 56,3 percent, Chemistry’s export decreased by 48,2 percent and Clothing’s export decreased by 39,1 percent. In May, according to same month in 2019, Turkey’s export to Switzerland increased by $44,4 million, to Azerbaijan increased by $39,1 million and to Venezuela increased by $15,9 million.

JPMorgan, EBRD to support Turkish businesses

he European Bank for Reconstruction and Development (EBRD) said it will support the growth of small businesses in Turkey, especially ones led by women. The bank will be joined by the JPMorgan Chase Foundation, which became the first private-sector philanthropic organization to cofinance grants for EBRD. “The grant will be used to develop a new digital platform or solution that will expand access to know-how and learning opportunities for SMEs (small- and medium-sized enterprises),” it said. The platform aims at helping businesses that face challenges in accessing information and the

business networks they need to grow. Additionally, the funding will lend support to promising women-led businesses in Istanbul. The EBRD is a major investor in Turkey. Since 2009, it has invested almost 12.4 billion euros (TL 95.9

billion) in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s 7 billion-euro Turkey portfolio is the largest among the 38 economies where the bank invests.

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Ankara eyes sustainable, balanced trade with Beijing Continued From Page 1

Ruhsar Pekcan Turkish Trade Minister

The duo discussed bilateral trade, use of local currencies in trade, Beijing’s Belt and Road Initiative, agricultural exports and the agenda of a joint economic commission. They also addressed World Trade Organization reforms, customs issues, cooperation in civil aviation, specialized free zones and the facilitation of commercial visas. Pekcan said Turkey could become an ideal regional hub for China’s global companies, thanks to its quality human capital, a customs union with the European Union and a flexible incentive system for investors. She brought Turkey’s free-trade zones, specializing in research and development, high-tech and high value-added activities to the Chinese minister’s attention. Pekcan invited Chinese firms to invest in these zones as Turkey aims to speed up international cooperation and become a global hub.

Pekcan added that Ankara was also ready to cooperate on the Belt and Road Initiative, China’s ambitious development program to connect Asia with Africa and Europe via land and maritime networks along six corridors to improve regional integration, increasing trade and stimulating economic growth. “Some 28,243 tons of freighter was loaded through Baku-Tbilisi-Kars railway during the coronavirus pandemic, while it was 4,200 tons per month in January,” Pekcan said. Bilateral trade volume between Turkey and China surged to $21.6 billion (TL 147 billion) in 2019, up from $1.1 billion in 2001, she added. Pekcan said China could purchase specific products, such as motor vehicles, medical equipment, electrical machinery and agricultural products, from Turkey for better quality and under favorable conditions. “We’re ready to cooperate with China in those fields,” she added.

Turkey’s 1st domestic car plant gets environmental green light Continued From Page 1

It also includes recommendations for the mitigation of potential adverse impacts and enhancement of the beneficial ones. In June 2018, five industrial giants – the Anadolu Group, BMC, Kök Group, Turkcell and Zorlu Holding – as well as an umbrella organization, the Union of Chambers and Commodity Exchanges of Turkey (TOBB), joined hands to produce TOGG. The country’s long journey to produce a fully homegrown car came to an end on Dec. 27 as it unveiled the first prototypes in a grand ceremony in the northwestern town of Gebze. President Recep Tayyip Er-

doğan unveiled prototypes of a sport utility vehicle (SUV) and a sedan, both fully electric and

C-segment models. Mass production of the SUV will begin in 2022, while the production of

Turkey, India only G-20 countries to post growth in Q1, OECD says

easures to curtail the coronavirus pandemic caused a record drop in the gross domestic product (GDP) of G-20 countries in the first three months of 2020, the largest decline since records began in 1998; while Turkey and India were the only two G-20 economies to register growth from January through March, the Organisation for Economic Co-operation and Development (OECD) said. The real GDP in the G-20 countries dropped by 3.4% in the first quarter, with the steepest declines in China, where the economy shrank 9.8% from the fourth quarter of 2019, and in France and Italy, down 5.3% each, the OECD said in the report. These were among the first countries to impose drastic lockdowns against the virus. “As a comparison, the GDP fell only 1.5% in the first quarter of 2009, at the height of the financial crisis,” it noted. Turkey and India were the only two G-20 economies that recorded positive growth in the first quarter, with 0.6% and 0.7% respectively, the OECD added. The OECD said provisional data showed GDP declines of 2.2% in Germany, 2.1% in Canada and 2% in the U.K. Output shrank 1.5% in Brazil, 1.3% in the United States and South Korea, and 1.2% in Mexico. The contraction was less felt in Indonesia with a drop of 0.7%, Japan down 0.6% and Australia 0.3% lower, said the report.

The OECD said year-on-year the GDP in the G-20 countries contracted by 1.5% in the first quarter of 2020, following growth of 2.8% in the previous quarter. Among G-20 economies, Turkey posted the highest annual growth with 4.4%, while China recorded the largest annual shrinkage with 6.8%. The Paris-based agency had already warned that the coronavirus crisis has triggered the worst global recession in nearly a century – and the threat it poses is not over yet even if there is no second wave of infections. Updating its outlook, the organization forecast that the global economy would contract 6% this year before bouncing back with 5.2% in growth in 2021 – providing the outbreak is kept under control. However, it said an equally possible scenario of a second wave of the contagion this year could see the global economy contract 7.6% before growing only 2.8% next year. Hundreds of millions of people have lost their jobs, and the crisis is hitting the poor and young people the hardest, worsening inequality, the organization said. In the event of a second wave of the contagion later in the year, the economic output could shrink by as much as 7.6%, it said while warning that in both scenarios, the recovery would be “slow and uncertain.” The U.S economy, the world’s biggest, is seen contracting 7.3% this year before growing 4.1%

next year. In the event of a second outbreak, the U.S. recession would reach 8.5% this year, and the economy would grow only 1.9% in 2021, the OECD said. Meanwhile, the euro area is heading for a downturn of 9.1% this year followed by 6.5% growth next year. But the recession could reach 11.5% this year in the event of a second outbreak, followed by growth of 3.5% in 2021. The OECD said it expects the Turkish economy to contract by 4.8% in 2020, before growing by 4.3% in 2021. Britain is expected to see the worst downturn among the countries covered by the OECD, with its economy forecast to contract 11.5% this year before recovering 9.0% next year. A second outbreak could trigger a slump of 14.0% this year followed by a rebound of 5.0% next year, the OECD said. In the case of a second wave of the outbreak, it forecast that the average unemployment rate across the 37 developed countries that it represents would double this year to 10% and see “little recovery” in 2021. In a more optimistic scenario, the figure would be 9.2%. In poorer countries, the numbers are often higher, and informal workers are especially vulnerable. The agency urged governments to tackle inequalities by investing in health care systems, global cooperation for medical supplies, vaccines and treatments and retraining people whose sectors have been the hardest hit.

the sedan model is expected to launch after the SUV goes into production.

Mehmet Soztutan Editor-in-Chief

Letter From The Editor

No deviation from sustainable recovery and growth As known, Turkey is one of the economies least affected by the pandemic. Turkey is anticipated to come out of the coronavirus-driven crisis with a V-shaped recovery, and will converge its potential growth and export performance, according to the Turkish officials. Actually, despite the unfavorable outlook stemming from the coronavirus related developments in the second half of the year, preliminary data for economic recovery and confidence in the economy are promising. Besides, credit growth has remained strong thanks to lower borrowing costs, which resulted from the Central Bank’s rate cuts and cheaper loans provided particularly by state-owned lenders.

Turkish economy, started their production even faster than the pre-coronavirus period as of June 1 when the country lifted almost all of the measures as the spread of the virus was declared under control and a new phase of normalization has begun.

We know that it is hard to keep its competitive position in the world market of emerging players. Thus, manufacturers have shifted their operations to value-added products and brand names more than ever. Currently, many of Turkish manufacturers have their own designs and brands in international markets.

The size of the Economic Stability Shield package the government announced to help firms and households weather the impact from the outbreak has exceeded 280 billion liras, excluding deferred loan payments and interests.

As known, Turkey, being the oldest of our publications, conveys the messages of the Turkish exporters for years by participating in a series of international fairs and exhibitions.

Especially automotive and textile industries, which are considered chief players in the

We wish Turkish business people and their foreign counterparts lucrative trade.

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World Bank extends loans of 250 mln euros for Turkish exporters

Continued From Page 1 The project aims to improve access to longer-term finance for export-oriented small- and medium-sized and mid-cap enterprises. Under the project standards, firms with less than 250 employees are defined as SMEs, and firms having between 250 and 1,500 people on the payroll are accepted as mid-cap. At least 70 percent of the guaranteed loan amounts will be used for sub-loans to the SMEs, and at least 10 percent of the guaranteed loan amounts will be earmarked for lending for women-inclusive firms, said the World Bank statement. “The partial credit guarantee will enable Turkey’s Eximbank to raise up to 500 million euros in long-term funding from commercial lenders, which will allow it to provide working capital and investment sub-loans to private exporting enterprises,” it said. “It will also assist Eximbank to achieve longer maturity and lower all-in cost than are currently achievable without a guarantee. The market finance raised with the support the guarantee will also allow Eximbank to extend sub-loans to eligible SME and mid-cap exporters,” it added. “In the short term, it is essential to pre-

serve the export capacity of Turkey as its firms have severely been affected by the onset of COVID-19 crisis, so that they will be able to survive and contribute to the future recovery,” said Auguste Kouame, World Bank Country Director for Turkey. “This project will contribute to provid-

Turkish firms receiving the credit from Eximbank under the project will be the main direct beneficiaries. Another project beneficiary will be Eximbank itself and the broader universe of Turkish exporters served by it, insofar as the project is expected to strengthen Eximbank’s capacity to raise long-term

ing uninterrupted and improved access to finance to viable exporting firms during these difficult times. It will therefore help preserve Turkey’s participation in global value chains,” he said.

funding in international markets, and to channel this funding into longer-term loans to exporting enterprises, including SMEs and women-inclusive firms. Prior to COVID-19, access to long

term finance was identified as a major constraint to Turkish firms’ export performance. COVID-19 has intensified this constraint. “Access to finance is particularly constrained for SMEs who account for 73 percent of total employment, 62 percent of total revenue, 58.3 percent of total investment, 55.4 percent of total exports, and represent 99 percent of all firms in Turkey,” remarked Alper Oğuz, task team leader of the project. “Financing the technology upgrading and productivity improvement of SMEs is vital for Turkey to reach its ambitious export growth goals,” he added. IFC supports digital startups The International Finance Corporation (IFC), a member of the World Bank Group, is committing 15 million euros to Revo Capital Fund II (Revo II) to support digital startups and ensure their continued growth and success during the COVID-19 pandemic. The fund aims to support development of a more dynamic digital economy in Turkey and Central and Eastern Europe. Revo Capital will use IFC’s financing to invest in startups that provide technology-based solutions to consumers and to SMEs to help them increase productiv-

ity and connectivity. “Their support is a significant sign of trust in both Revo Capital and the Turkish startup ecosystem,” said Cenk Bayrakdar, managing director of Revo Capital. Revo II will focus on the same geography as the first fund, allocating 65 percent of its commitments to Turkey, and the remaining to other countries. IFC is also establishing a 15-million-euro envelope for potential co-investment opportunities alongside funds managed by Revo Capital. “This funding addresses a critical gap in access to early-stage equity, which is scarce in Turkey and other CEE countries,” said Arnaud Dupoizat, IFC country manager for Turkey. “The investment is essential to ensure that the region’s digital startups across various sectors - including software, fintech, and health tech - are able to scale up their operations and help SMEs grow and provide more jobs.” The IFC has supported private sector development in Turkey for over 50 years, with a committed exposure of over $4 billion in the country as of June 2019.

“Made in Türkiye” spreads goodness to the world

While Turkey extends its friendly hand to over 70 countries during the Covid-19 outbreak in support of the global struggle, Turkish exporters take the 'humanity' and 'goodness' movement one step further by saying 'Made in Türkiye'. Turkish Promotion Group (TTG) carries its activities under the Turkish Exporters Assembly (TIM) in pursuit of the vision of contributing to the worldwide branding of export sectors. By sending special design hygiene kits to the major traders in the target markets, representatives of trade associations, and the press, TTG aims to revive the spirit of solidarity in difficult times and tell Turkey's success in production, supply, and exports. Continued From Page 1 In the framework of this project, TTG has prepared special design kits consisting of hygiene products with the logo “Made in Türkiye” to symbolize Turkey’s spirit of solidarity in this period and to increase the country’s brand value. DHL Express, the project’s logistical sponsor, will deliver these kits to major buyers, trade association representatives, press members, and world-famous social media phenomena in more than 60 countries. Moreover, it will carry the goodwill message of Turkey and its exporters with the #GoodnessFromTürkiye tags, which it

will add to each international shipment for 2 months. The same message will be placed on domestic courier vehicles. İsmail Gülle (TIM and TTG Chairman) and Claus Lassen (DHL Express Turkey CEO) participated in the ceremony held at TIM headquarters during the shipment of kits.

epidemic of a size unprecedented for

a century. “We are giving a good account both as a country and as exporters in such a hard time in world history. The effective management of our fight against the virus, under the strong leadership of our President, has enabled us to initiate normalization steps for the Turkish economy to reach the peak of the epidemic sooner than expected, as data obtained from the Ministry of Health points out. During this process, the product donations made to more than 70 countries with our helping hand has both demonstrated Turkey’s production and supply opportunities and capabilities to the world and become

a sign of the country’s ability to show international solidarity. As Turkey, we are trying to extend our hand to every needy point in the world. Even though international conditions are difficult from time to time, we have been working with our utmost strength since the first day without stepping back from our goals. Despite many challenges in the global supply chain, we have restored our confidence by delivering products in timely manner. We believe it will give us a great advantage in the future and help to the brand of Turkey reach a different point in the eyes of overseas buyers.”

India, Japan and South Korea are still pending approval and expected to be finalized in 2020, according to the consortium. Turkey’s long journey to produce a fully Turkish-made car came to an end on Dec. 27 last year, as the country unveiled its prototypes at a grand ceremony in Gebze, near Istanbul.

President Recep Tayyip Erdoğan unveiled the prototypes of an SUV and sedan, both fully electric, in addition to C-segment models. Mass production of the SUV will begin in 2022, with the sedan to follow. TOGG will produce five different models – an SUV, sedan, c-hatchback, b-SUV and b-MPV – until 2030, and own the intellectual and in-

dustrial property rights of each. The cost of the factory to produce the vehicles is expected to reach 22 billion Turkish liras ($3.7 billion). It will employ 4,323 staff, including 300 qualified personnel. The cars, indigenous to Turkey, will also be supported by the government with various tax discounts and incentives.

İsmail Gülle: “We have delivered the products to their destinations in time” İsmail Gülle (Chairman of TIM and TTG), who delivered a speech in the ceremony, emphasized that since the beginning of 2020, the world was giv-

ing a unique struggle against a global

China registers Turkey’s 1st national car designs

The Automobile Joint Venture Group (TOGG), a consortium of five major Turkish companies working on the manufacture of Turkey’s first national automobile, announced that the Chinese patent agency had accepted its design registration application. TOGG’s sports utility vehicle (SUV) and sedan designs were registered by the Chinese Patent Authority, according to the company’s website. The de-

cision follows the interior and exterior designs of TOGG’s automobiles having been registered by the European Union’s Intellectual Property Office (EUIPO) in April. The industrial property rights provided by EUIPO will remain valid until February 2029 – 10 years after the trademark is granted – but could be extended upon application by TOGG. Meanwhile, TOGG’s design registration applications in the U.S.,

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IKMIB determined to increase its export volume in line with the normalization process

Adil Pelister, the Chairman of Istanbul Chemicals and Chemical Products Exporters’ Association (IKMIB)

Continued From Page 1 The main functions of Istanbul Chemicals and Chemical Products Exporters’ Association are as follows: Providing sectoral collaboration Improving the export volume of the sector in line with the benefits of our country Organizing training courses, seminars and

meetings related with its subject matter Supporting its members in the national and international level in case of facing any problem related with export/trade activities Organizing trade fairs, arranging promotional activities, founding laboratories The Activities of Association:

· Organizing national/ international meeting of our exporters. · Organizing national/international trade fairs. · Organizing meetings of our exporters with “Buying Missions” from different countries of the world. · Organizing “Trade Missions” which are composed of Turkish exporters to the target markets. · Organizing seminars/ conferences/training courses for our members. · Following up the recent arrangements in international law and informing our members about them. · Preparing annual reports bout the export performance of the sector. · Preparing reports about “target markets” and “target sub-sectors”. Major products are: · Plastics and articles, plastic packaging materials, plastic kitchen materials, melamine and urea resins, acrylic polymer, polyvinyl chloride, polyvinyl acetate, polyester, etc. · Mineral fuels, mineral oils (gasoline, fuel oil, naphtha, C4, motor oil,

L.P.G.) Soap and detergents · Inorganic chemicals (refined borax, boric acid, sodium sulphate, alumina, sodium hypochlorite, sodium metabisulphite) · Pharmaceutical products and medical devices · Organic chemicals (benzene, acrylonitrile, ethylene glycol, glycerin, medical raw material. · Dyes, pigments and other coloring chemicals, paints and varnishes Essential oils and resinoids, perfumery, cosmetics and toiletries · Rubber and articles · Fertilizers (diammonium phosphate, triple super phosphate, azote and phosphoric composed fertilizers) · Others (agricultural chemicals, textile auxiliary chemicals -finishing materials, fatty acids, adhesives)

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Turkish banks and firms secure over $6.9B international financing

urkish banks and companies have achieved significant success by securing nearly $6.91 billion (TL 47 billion) in international financing during the period when the coronavirus pandemic has halted economic activity and severely affected the global economic system and financial markets. The financing enabled the institutions to easily overcome the financial difficulties of April and May when debt returns are the most intense. Turkish banks, including Akbank, Ziraat Bank, VakıfBank, QNB Finansbank, Yapı Kredi Bank, Türk Eximbank, Garanti BBVA and I Bank, and confectionery giant Ülker Bisküvi secured a syndicated loan of $6.3 billion in April and May, marked by difficult market conditions due to the outbreak. The banks have also managed to secure nearly $600.6 million in non-syndicated financing from several international organizations, including the European Bank for Reconstruction and Development (EBRD). The institutions in question thus achieved a 91% syndicated loan renewal rate in the last two months, given the $9.93 billion syndicated loan used in 2019. In addition, borrowing costs during this period were also 25 basis points lower in the dollar and 40 basis points lower in the euro than last year. The cost of syndicated loans was “Libor + 2.25%” in dollars and “Euribor + 2%” in euro. Private lender Akbank was first to secure a syndicated loan renewal, having renewed 86% of last year’s $700 million loan by securing a $605 million syndicated one-year loan on April 1-8. The public lender Ziraat Bank managed to renew 75% of the $1.42 billion of last year’s syndicated loan by securing $1.06 billion on April 9. Another public lender VakıfBank renewed 88% of last year’s $1.09 billion by securing a $950 million syndicated loan on April 29. QNB Finansbank, whose syndicated loan stood at $200 million last year, on May 14 mobilized $225 million from international lenders, posting a 128% loan renewal rate.

Also, another private lender, Yapı Kredi, reached an 84% loan renewal rate as it secured $870 million between May 15-27 from last year’s $1.03 billion. Having used a $407 million syndicated loan last year, Türk Eximbank received a syndication loan worth $723 million on May 14-29 amid coronavirus’ economic fallout. The institution thus managed to post a record loan renewal rate of 178%. Garanti BBVA on May 20 secured a $594 million syndicated loan, renewing 79% of last year’s $755 million. Having used a $950 million loan last year, I Bank managed to mobilize a $792 million syndicated loan on May 21, reaching a loan renewal rate of 83%. The leading biscuit maker in Turkey, Ülker Bisküvi, overcame global market turbulence by also securing international funding to continue smooth operations. It secured a total of $455 million from eight lenders on April 2 despite market volatility. The loan consisted of a syndicated facility of $374 million and a parallel loan of 75 million euros ($81 million) provided by the EBRD.The company, therefore, renewed 121% of the last year’s loan. One of Turkey’s best-known confectionery, Ülker produces biscuits, cakes, wafers, chocolate bars and chocolate-covered biscuits. It sells products throughout Turkey and exports to Europe, North America, Africa, Asia and the Middle East. The EBRD is a major investor in Turkey. Since 2009 it has invested almost 12 billion euros in various sectors of the country’s economy, with almost all investments in the private sector. In the period when global economies stalled, five Turkish banks managed to also receive nonsyndicated financing worth $600.6 million from various international institutions, primarily the EBRD. Denizbank, QNB Finansabnk, Garanti BBVA, Yapı Kredi and Türk Eximbank received $175 million, $136 million, $104.6 million, $100 million and $85 million, respectively, in May.

Turkish automotive industry ready to meet growing demand Continued From Page 1

Most customers have now been placed on waiting lists, which are not likely to clear until August and September, industry representatives said. The stock unavailability has been an issue for the car market since the last quarter of the previous year.The situation worsened after the pandemic forced auto factories to suspend production worldwide, paralyzing the entire industry. It was only possible for factories to resume production in May at limited capacity, which fell short of resolving the supply problems. Automotive production in the country slipped by 22% in March and further plunged by 91% in April, according to the Automotive Manufacturers Association (OSD) data. The industry saw a production loss of some 150,000 units over the two months. Overall, 2020 production between January and April dropped 28% year-on-year the data showed, with some 352,309 vehicles, including automobiles and commercial vehicles, being manufactured in the period. Several car brands were able to import new vehicles from Europe, which went unsold due to a collapse in demand. However, the practice is not likely to continue as the demand begins to pick up in the European market as well. Industry experts expect supply shortages to be resolved by the end of 2020 when factories resume production at full capacity. Meanwhile, the short supply of new vehicles has pushed customers to the secondary market, leading to a 10% to 15% price increase in secondhand cars. Several dealers in the used car market reported that they have sold out despite the high prices. Industry representatives expect between 40,000 to 50,000 total car sales in June, depending on the supply. If estimations are correct, this year’s figures for July will surpass sales both in 2019 and 2018. The attractive loan opportunities announced recently by public lenders have significantly boosted the demand in cars, the experts also pointed out. Ziraat Bank,VakıfBank and Halkbank introduced loan packages for individual and corporate customers who want to purchase new and secondhand passenger vehicles, including motorcycles or commercial vehicles, from contracted companies that make them domestically. Banks offered loans with interest rates as low as 0.49% and a grace period of up to 12 months. The loan packages also included secondhand car purchases.

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Turkish auto industry ready to fill vacuum left by China after pandemic

he Turkish automotive industry’s strong production performance during the coronavirus pandemic has attracted the attention of global companies that are seeking to shift their production away from China and could mean new multimillion investments to the sector in the upcoming period, industry representatives told Sabah. The Automotive Suppliers Association of Turkey (TAYSAD) announced that it will kick off a promotional campaign in Europe to strengthen Turkey’s status as a reliable automotive producer. The association said the $1 million PR campaign will promote the Turkish auto industry’s produc-

tion capabilities to the European auto giants. TAYSAD said they are planning to capture up to $1 billion in investment from automakers, which have been looking to move production away from China. Alper Kanca, president of TAYSAD, said the promotional campaign, which has been organized with the Automotive Exporters Association (OIB) and supported by the Ministry of Trade, will target car makers in Germany, France and the United Kingdom. As part of the campaign, foreign journalists and European sector representatives will be invited to Turkey to advertise the industry’s production capacity. Kanca said

they are also planning to bring together senior sector leaders from Turkey and Europe to discuss possible cooperation, Kanca said.

up to $1 billion in investment as a result of the promotional efforts. Turkey is a major auto parts supplier, producing some of the key

“We want to sell goods to everyone looking for a strong alternative to China,” Kanca noted, adding that the industry could receive

components of the world’s highest quality brands with annual exports worth around $30 billion. Atacan Güner, the general man-

ager of Assan Hanil, a leading supplier for the automotive sector, told Sabah that Turkish firms have been given an important opportunity to fill the vacuum in the global markets left by China due to the pandemic. “It will be a great success for us even if we manage to capture 10% of Chinese share in the European market. That is why TAYSAD’s initiative carries crucial importance,” Güner said. Meanwhile, auto factories in Turkey experienced an increase in the number of orders from clients in Europe and the United States since February, said Celal Bektaş, the general manager of Bektaş Otomotiv.

Bektaş said companies that have previously worked exclusively with Chinese producers are turning to Turkey as an alternative in an attempt to secure their supply chains. “There are no better manufacturers than us in the market today. Our production capacity, fast order fulfillment and logistic advantage strengthen our hand against our competitors,” he added. Can Yücel, the chairman of Dostel Machinery, said the industry is expecting European markets to stabilize and reopen after the pandemic to increase auto part exports. He added that only the German market has shown signs of reopening in the industry as of now.

Leader Exporter Sector was “Automotive Industry” in May

“Our Expectations from Turkish Exporters are Beyond the Normal” Turkish exporters to receive $500M loan package As part of the cooperation between the Turkish Exporters’ Assembly (TIM) and a Turkish private-lender Iş Bank, exporters will be provided a credit package of up to $500 million (TL 3.5 billion), the head of the TIM Ismail Gülle said. The protocol for the loan package was signed in a ceremony held with the participation of Gülle and Iş Bank General Manager Adnan Bali. Within the scope of the package, a maximum of 150,000 in dollars and euros or TL 1 million credit will be allocated for each company, in order to expand the package’s capacity to reach more exporters. Export Exchange Credit is set to be offered to all TIM member exporters with an interest rate of 2.4%

annually in dollar loans and 1.15% annually in euro loans. Turkey’s exports rose 34.3% year-on-year to reach $9.1 billion in the first 23 days of June, Gülle also said in the meeting. In May, Turkey’s exports dropped 40.9% to $10 billion on a yearly basis, due to the COVID-19’s effects on the economy. In April, credits used for exports reached TL 196 billion ($28.6 billion), Gülle noted.

Emphasizing that collaborating with Iş Bank is important in providing confidence to exporters, Gülle said: “It is our greatest hope that similar collaborations will continue increasingly. Especially in the last two years, we have seen both volumetric and proportional increases in the loans of the banking sector for exporters and the interest and relevance of the sector in exports pleases us.” While the export loans of

banks were at the level of TL 116 billion in April 2018, the value of those loans increased by 69% and reached TL 196 billion in April this year. Also speaking on the details of the package, Bali said that exports which have a critical role in the growth of the country’s economy are also of great importance in the way out of this difficult pandemic period. “We are implementing many initiatives in order to reduce the effects of the

pandemic on employment, production, trade and payment systems and ensure the continuity of economic activity. In addition to our ongoing support packages for the economy, we offer the maturity and payment options for every need for export financing with the protocol we signed with TIM ” he said, highlighting that as part of the protocol, the bank kept its interest rates at the lowest possible level to support the country’s exporters. “We think that the lowinterest rates we apply in export foreign currency loans are critical not only for our exporters but also for all segments of the economy,” the bank’s general manager added.

Nearly all of Turkey’s tourism facilities to reopen in July

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Continued From Page 1

“In Europe, there is no country that better implemented this kind of a process than Turkey,” Ersoy said. Foreign tourists from certain countries, including those from Germany, will be allowed into the country as flights are beginning to gradually resume. “When foreign visitors come, they will

this process is to resume air traffic to all countries, according to the minister. “We are hoping to increase air traffic in July,” he said, adding the process of opening air traffic for most countries would be completed in August. “We have sent letters to at least 60 countries that provide the most tourists to Turkey. We have

with their own observations. The “healthy tourism certificate” program launched jointly by several ministries, including the Culture and Tourism Ministry and the Health Ministry, aims to convince travelers that despite the pandemic, Turkey’s beaches and historic treasures will be safe to visit this year, with rigorous checks on airlines, local trans-

be health-checked, and body temperatures will be measured at the airports. If there is an unusual situation, tourists will be taken for a PCR (polymerase chain reaction) test,” Ersoy said. These measurements will start in some of Turkey’s leading areas in terms of touristic attractions, including in the southern resort city of Antalya and the resort towns of Bodrum and Dalaman, as well as western Izmir province and the airports in Istanbul. The country’s main priority in

informed them of Turkey’s tourism certification program and our enhanced hospital infrastructure,” he added. The minister noted that they have invited the ambassadors of those 60 countries to Antalya on June 19, along with media representatives who are currently in Turkey. “We want to show how the program works in place starting from the airports to the facilities, shopping malls and our hospital infrastructure,” Ersoy said, adding that they will report accordingly

port and hotels and utmost safety guidelines for places of accommodation. The program has 132 criteria, including ensuring that hygiene regulations are followed and social distancing is practiced. Staff members are also to be trained in measures to prevent the spread of infection. The government has also published an overview of the hospitals available in areas popular among tourists and lists their capacities.

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Turkey’s central bank pledges measures to support post-pandemic recovery Continued From Page 1

“Thus, we aimed to minimize the longterm effects of the temporary pandemic on production and employment,” Uysal noted. “(With steps taken) we aimed to support financial stability and the post-pandemic recovery process by providing the financial system and the real sector with the liquidity they need under appropriate conditions,” he added. The governor noted that the measures aimed at overcoming this period with minimal damage by supporting production and financial stability in the economy have supported the liquidity and credit conditions of the financial sector, and the money transfer mechanism has maintained its effectiveness. “In the coming period, we will continue to take rapidly the decisions that our country and our economy will need and implement the decisions that are taken effectively,” Uysal said. To limit the negative effects of coronavirus-related developments, it is important that the financial markets, credit channels and cash flow of firms continue to operate in an uninterrupted and healthy manner, Uysal said.

Measures to backstop economy The bank has taken multiple measures to stimulate and backstop the economy and government finances in the face of the coronavirus pandemic. Uysal said they have taken action to support the liquidity in the Government Domestic Debt Securities (GDDS) market. He stressed the aim was to deepen the capital markets by incorporating asset- and mortgagebacked securities into the collateral pool to preserve the market depth of capital markets and to diversify the liquidity opportunities available to financial institutions. Among others, the bank earlier this month announced it would reallocate TL 20 billion ($2.93 billion) of the limit of Turkish lira rediscount credit facility as advance loans against investment commitment for more effective utilization to support investments in select critical sectors, in line with government efforts to reduce the country’s dependence on imports. Uysal said that the aim of this step was to encourage investments that increase productivity, reduce imports and support exports, reduce external dependence and the problem of the current account deficit and support sustainable growth.

Murat Uysal Central Bank of the Republic of Turkey

The financial support under the relief package the government announced in March to cushion the economic fallout from the outbreak has exceeded TL 280 billion (nearly $41 billion), Treasury and Finance Minister Berat Albayrak recently said. With the multiplier effect, the size of the bailout package has hit over TL 600 billion, he said. Broad, powerful set of tools The central bank has a broad and powerful set of tools to minimize the negative effects of the pandemic, the governor said. “In this period, we will continue to determine our monetary stance to ensure the continuity of the decline in inflation and

Turkey’s textile, automotive businesses expect quick start and recovery Following a mandatory yet brief break due to the coronavirus outbreak, Turkish factories in western Kocaeli and Sakarya provinces – leading industrial cities of the country, started operating at full speed, with new investments and factory openings on the way thanks to increasing orders. Especially automotive and textile industries, which are considered chief players in the Turkish economy, started their production even faster than the pre-coronavirus period as of June 1 when the country lifted almost all of the measures as the spread of the virus was declared under control and a new phase of normalization has begun. Mustafa Gültepe, CEO of the Talu Tekstil located in the first Organized Industrial Zone (OIZ) in Sakarya, who is also the chairman of the Istanbul Textile and Apparel Exporters Association (ITKIB) said that they started June fast, as the company is receiving high numbers of orders from Europe. Textile and apparel were one of the sectors most affected by the pandemic that hammered businesses worldwide. Hitting Europe and the U.S. hard after emerging in China, the outbreak shuttered nearly all stores and eventually caused a difficult process for Turkish textile manufacturers and exporters. However, the textile manufacturers underwent a quick revival and now foresee an even quicker recovery after the shock they experienced, sector representatives said. Talu Tekstil is currently working again at full production after its factories produced nothing but medical masks during the month of April. “The demands have increased significantly with the opening of stores in Europe. Our capacities are also increasing rapidly,” Gültepe said. The company opened its third factory in Adapazarı last year to keep up with increasing orders and is now planning to move its factory to a newly established giant factory with a closed area of 20,000 square meters (65,617 square feet) in central Turkey at the end of the month. Its production capacity is planned to increase by 30% after moving to the new factory. “Our investments will continue to increase,” Gültepe said. The company, which strictly follows all the rules set out by the Ministry of Health, has already changed the working order and reorganized its dining halls accordingly with social distancing rules while every staff member is required to wear face masks and have their temperatures taken regularly. Produce to export The company sells its entire production abroad and were sending products to 155 countries before the outbreak. Talu Tekstil, which was manufacturing approximately 1 million products a day for global companies before the virus, is working with the target of producing at these levels again in August. Stating that they provide employment for 2,500 people, Gültepe noted, “As industrialists, we are ready to do whatever we can with the support of the state.”

He added that Turkey stands out as one the most powerful alternatives to supply chains and with this challenging process it has even “strengthened its solid supplier position.” Capacity high in automotive Assan Hanil Automotive Industry and Trade Inc., established with the partnership of Kibar Holding and South Korean Seoyon E-Hwa that resumed production on April 20, is also continuing to produce at high levels and increased its capacity utilization rates up to 70% in a short time. Atacan Güner, the company’s general manager, said that the capacity utilization rates are increasing daily, and “the sector is expecting 90-95% levels in September.” The company operates five plants; three of which are located in Kocaeli, one in northwestern Bursa and the other in central Aksaray; and produces for brands including Hyundai, Ford, Mercedes, Toyota, Karsan, Isuzu and Honda. The companies that receive products from Assan Hanil which has an annual 190 million euro ($214.2 million) turnover, are also among the largest exporters and have large markets in Europe. Thus, 90% of the company’s turnover comes from indirect exports. Saying that the main acceleration in the sector will be achieved with the opening of the European market, Güner said: “We expect the market to return to 70-75% sales pace in June and its pre-coronavirus levels in three to four months.” Güner also said that the company’s initiatives for investment abroad also continue uninterrupted despite the virus and having its main target in western Europe. “Our search for investments continues regarding Germany, Czechia and Poland,” he said, noting that “they plan to buy at least 50% shares of a company with an investment of 40 million euros.” Stating that they are recovering rapidly although the sector is the most affected by this crisis after the textile and aviation industries, Güner explained that the credit support given by the public banks to the automotive sector is also very important. Predicting that this step will be reflected in the sector very quickly, Güner said: “The automotive (sector) is the locomotive of the exports. All kinds of support to be given here are also very important for the protection of employment. We expect the sales to double with the support in question.” Turkey’s three largest state Lenders announced that they will extend a new loan incentive scheme with reduced rates to invigorate the transition to normalization and revive social life, as economic activity steps up following a slowdown due to the coronavirus pandemic. Ziraat Bank, VakıfBank and Halkbank are beginning to offer four new loan packages, including mortgages for new houses, loans for vehicle purchases, locally manufactured goods and holiday expenses at annual interest rates running below inflation. The move was later joined by the state lenders’ participation banks.

use all the tools we have with a data-driven approach for price stability and financial stability purposes,” Uysal said. “As we have always stressed, price stability contributes to sustainable growth by reducing uncertainties and supporting the growth potential of the economy, while healthy and inclusive growth strengthens the sustainability of price stability.” The bank last month delivered the ninth consecutive rate cut to counter the economic downturn brought on by the outbreak. It cut its benchmark one-week repo rate to 8.25% from 8.75%. Thus, the bank has cut its key policy rate by 1,575 basis points since July last year in a muscular bid to stimulate the economy. On the inflation side, it climbed more than expected to 11.39% year-on-year in May, according to the Turkish Statistical Institute (TurkStat) data. May’s annual inflation was up from 10.94% in April. Month-on-month, consumer prices rose 1.36% in May. The bank has also executed a record bondbuying stimulus as part of quantitativeeasing measures. It has bought more than TL 50 billion of bonds since the end of March, shortly after the first coronavirus case in the country was announced. Those

purchases include some TL 23 billion from the Unemployment Insurance Fund. The share of government debt among its assets exceeded 10% last week, according to official data. The bank holds some TL 75.6 billion of government debt as of June 8, up from TL 19 billion at the end of 2019. The bank has set the bond purchase limit at 10% of its assets, up from 5%, but the debt from the Unemployment Insurance Fund is not included in that quota. The government has tapped the insurance fund to provide support for citizens who have lost work hours or were laid off, through methods such as unemployment and short-labor pay. President Recep Tayyip Erdoğan last week said that since March, more than 3 million people had benefited from the short-labor pay, which provides additional wages to employees whose work hours are cut short. He said around TL 5 billion had been disbursed. At the end of February, the Unemployment Fund had TL 131.6 billion, a large part of which consisted of Treasury bonds.

Turkey only market in Europe to record rise in car sales in first 5 months Turkey surpassed European countries and became the only market that has managed to increase auto sales from January through May. The automotive sector stands among the industries hit the hardest by the coronavirus pandemic as lockdowns closed car dealerships and brought a halt to manufacturing and sales. The outbreak has brought major losses in the European market, while it also impacted Turkey’s auto sales. However, since Turkey reported its first coronavirus case later compared to Europe and due to steps taken to counter the outbreak, Turkey’s car sales were less affected. According to European Auto Industry Association (ACEA) data, car sales in the European Union, Britain and European Free Trade Association (EFTA) countries slumped by 42.8% from January to May this year and stood at nearly 3.97 million units following three months of unprecedented falls across the region, with most markets seeing double-digit declines. Some 6.94 million units were sold in the same period of last year. As for Turkey, sales jumped 20% year-on-year in January-May, according to Automotive Distributors Association data (ODD). Croatia led the way, reporting the biggest drop in the said period with 55.8%, followed by a 54.2% drop in Spain and a 51.4% decline in the U.K., the data showed. The contraction of the German market was slightly less severe, with registrations down 35% over the first five months. So far this year, car registrations decreased by 50.4% in Italy, 48.5% in France and 35.7% in Belgium. Sharpest drop in U.K. As for May, European passenger car sales slumped by 56.8% year-on-year to 623,812 units but the drop, although still very severe, was not as sharp as in the previous month because of an easing of restrictions imposed to contain the pandemic. The same month in 2019 saw 1.44 million vehicles being sold. The drop was less pronounced than a 78.3% plunge in April. Sales of new cars in Britain tumbled 89% from last year in May, only slightly less negative than April’s record 97% collapse, as car dealerships remained shuttered by the government’s COVID-19 lockdown. The U.K. registered only 20,247 new units, representing the weakest May for sales since 1952, the Society of Motor Manufacturers and Traders (SMMT) said. The possibility that Britain’s transition out of the EU ends in December with no new trade deal is also likely to weigh on carmakers, some of whom have highly integrated supply chains with the continent. Sales recorded double-digit declines in all EU markets, with Croatia, Portugal and Spain reporting the

biggest drops of 76.2%, 74.7% and 72.7%, respectively. In Germany, just over 168,000 cars were registered last month, according to the country’s Federal Motor Transport Authority, down 49.5% compared with May 2019 and following a 37.7% drop in March and 61.1% in April. The decline in Italy, France and Belgium stood at 49.6%, 50.3% and 32%, respectively. Among carmakers, Volkswagen led the way as it sold 145,195 units in May, followed by PSA Group with 91,146 units and Renault Group with 62,230 units. Sales in Turkey up 20% Turkey’s passenger car and light commercial vehicle sales jumped 20% year-on-year in January-May and totaled 183,095 units, the ODD data showed. While passenger-car sales surged 21.7% on an annual basis to 146,528 in the January-May period, the country saw 36,567 light commercial vehicle sales, rising 13.9% during the same period. Turkey ranked seventh in Europe in terms of passenger car sales, leaving behind 24 European countries. Demand had a serious drop in the second half of March when the outbreak started affecting social life and the commercial environment after the country reported its first coronavirus case on March 11. Automakers started gradually shutting down factories and halting production on March 20 in a move that was first planned to last two weeks but ended up lasting through most of April. Top international automakers – including Ford, Honda, Hyundai, Mercedes, Renault and Toyota – have factories in Turkey. The facilities started gradually resuming operations on April 13, with all having reopened by May 11. In May, the automotive market narrowed 2.4% compared to the same month last year due to the coronavirus pandemic, hitting 32,235 vehicles. Passenger car sales fell 7.6% to 25,073, and LCV sales soared 21.6% year-on-year to 7,162 in May. Passenger car sales enabled Turkey to rank sixth in Europe. Demand for automobiles in Turkey has steadily risen since early June after three public lenders, namely Ziraat Bank, VakıfBank and Halkbank, introduced low-interest loan packages for individual and corporate customers who want to purchase new and secondhand passenger vehicles and following the easing of strict lockdown measures, but supply shortages are forcing potential buyers to walk away empty-handed. Car dealerships across the country have reported that domestic demand, which has been deferred since the last quarter of 2019, began to revive after the country started to reopen, but car stocks are still limited due to the global supply chain disruptions caused by the coronavirus pandemic.

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Turkey may be New Leader of Supply Chain in Trade for Libya and Africa Murtaza Karanfil, Head of Foreign Economic Relations Board (DEIK) Turkey-Libya Business Council, underlined that countries that restarted production swiftly by combatting the COVID-19 outbreak will play a key role post-pandemic. Karanfil suggested that Turkey should improve its ability to respond quickly to demand and be ready for post-pandemic trade. Praising Turkey’s steps to mitigate economic fallout and to stem the spread of the coronavirus. If we add the production strategy aiming to respond quickly to orders, to those accurate steps, we can further expand our market share and we form the supply chain in our favor. Turkey’s market share in Libya can reach 30%, up from its current level of 13%, Karanfil stressed, adding that Turkey should also utilize its geopolitic position. The new normal will significantly change the supply chain and Turkey can grab the 25% market share of China and Italy in Libya. Thus, Turkey can increase its exports to Libya to $10 billion in medium-term while enhancing its influence in African market.

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Nobel Ilac Has Been the only Pharmaceutical Company Among Turkey’s 100 Most Valuable Brands

Brand Finance, an international and independent brand valuation and strategy consulting company, has completed its report titled “Turkey’s Most Valuable Brands – Turkey 100” for the year 2020. The list included eight new brands from different businesses this year, with Nobel İlaç was listed as the only company selected within the healthcare industry. Hakan Sahin, the General Manager of Nobel İlaç, commented on the company’s success as follows: “Being listed as the only pharmaceutical company in Turkey’s 100 most valuable brands has been a great honor to the entire Nobel family. Nobel, a global player with an experience of more than half a century, was founded in 1964 as a fully domestic capital company. Since the very first day of our business operations, we have been confidently proceeding on our path with the vision of providing reliable and accessible products in every corner of the world for human health. Nobel İlaç, a Turkish brand, has gained a considerable position on the international platform over the years with the potential derived from this vision. So

much so that, our sales force transformation is being taught in classes as a case study in the Harvard Business School MBA program today. We are adding new assets to our repertoire of international achievements on a daily basis with the goal of improving the quality of life with the belief that “health is worth everything”. As an international pharmaceutical company with 100 percent domestic capital, we bring insignificant export figures every year. Today Nobel operates with a total of five manufacturing facilities, including three in Turkey and one in each of Kazakhstan and Uzbekistan. We export qualified products manufactured in line with international standards to approximately 50 countries. Together with our Swiss organization, which we established within the last year, we have been performing promotion and sales activities in 20 countries with our own organizations and brands. As Turkey’s top pharma export company, we are proud to create resources that benefit our country’s net foreign exchange deficit.”

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A COMPANY WHICH CROWNED ITS SUCCESS WITH MANY REWARDS: CIFTSAN ETIKET

Hakan Yolgun, General Manager of Çiftsan Etiket (Çiftsan Label), underlines the value of the sector by stating: “Properly Chosen Packaging, Labels Produced with a Beautiful and Impressive Design, are the Leading Reasons of Product Preference”. We listened the strong steps of Çiftsan Etiket for our readers, which has kept the unique secret of success and difference, without compromising corporate culture since its establishment. Could you inform us about your company? Our company, which adopts the highest level of customer satisfaction and service quality as a principle, is a family company founded in 2007 to produce self-adhesive and non-adhesive labels and packaging at European standards. Our facility, which has a closed area of 4,000 m2, is capable of producing approximately 6,000,000 m2 of labels per year by using high-tech machinery

and trained expert staff on all kinds of compact and laminated materials such as screen printing, letterpress, flexo, digital, embossing, hot-gilding and cold-gilding. Our company also produces films, clichés, digital clichés, HD stereotype, cold gilding and silkscreen silk. What about your service areas? Label and Packaging is the identity of a product. We are a team that is aware of the importance of 3-5 seconds that the product needs to affect the consumer on the shelf and we work for it. The role of label and packaging is indisputable in the success story of a product. Properly chosen packaging, labels produced with a beautiful and impressive design are the main reasons for choosing the product. With this awareness, we support our customers in many sectors, from design to production of labels and packaging. With the investments we made at the beginning of the year, we had the opportunity to produce very

low numbers of opp and body sleeve productions at very affordable costs. I think this situation has serious advantages for companies using these materials. Now our customers can buy either 1 kg or tons of material from us. We already had a production park that can make many printing techniques to all kinds of materials with our existing machinery. We have expanded this range with the latest investments. It is known that you follow technological innovations in packaging and labels closely. Could you give us a little more detailed information about your service quality technically? With our existing machinery, we have the capacity to produce very high-quality products at reasonable costs, regardless of number. We have 2 digital printing machines which are the latest technology printing machines in the world. Machines with the necessary equipment to produce very high-quality labels at low costs, especially for the cosmetics industry. The main reason we prefer these machines is that labels and packaging of trending brands in the world can be produced on these machines. Together with this and our flexo machines, we have 7 printing machines in total. Apart from this, we carry out almost all pre-press preparations in our own structure in order to keep our costs to a minimum. In short, I can say that we produce quality not inexpensively but in accordance with it. You are praised about your services in both national and international competitions and in this context, you are deemed worthy of many awards. Can you tell us about the awards you have received so far?

Since 2013, we have been participating in competitions with the labels and packages we produce at national and international organizations every year. Our 5 labels were awarded at the latest World Label Awards. In addition, we have a total of 94 awards in 7 years, including national and international. Do you design labels? Design and pre-printing preparation, printing and post-printing, equipment and team are undoubtedly an integral part of a process in the production of quality labels. What is the difference of Çiftsan Etiket in this regard? We have a very strong design and prepress preparation team. The most critical part of the process is to make the right designs in accordance with the specified printing techniques in the projects created, to make the pre-printing preparations meticulously and deliver them to the production. Of course, the necessary technological investment and technical infrastructure are required to ensure that this process is carried out correctly. Since our establishment, we have gathered the pre-press preparation unit under the roof of Çiftsan Etiket. With the investment of ctp and automation software, we have increased the efficiency of the personnel and kept the quality and the correct operation of the process under control. We work with the industry’s leading suppliers of printing and post-printing equipment and products. It is inevitable to work with companies that have standards in order to carry out the quality in determined standards. I think that one of the most important features that takes us to a different point is that we do not compromise on our solution partners, our service, principles, and quality policies. It must be very proud of your company to have registered your success with numerous awards in its service area. Your reputation and brand value in the industry increases day by day. What is the big secret behind this success? We are a young team with big goals and walking towards these goals. I can say that doing our job with passion on the first day and working hard to show continuous development has an important share in this success. Of course, we should not forget our friends that we are solution partners. They give us important chances to succeed in many award-winning projects. I would like to thank them from here through you. The Covid-19 epidemic has affected your service as well as any other industry. In this sense, what kind of strategy did you develop as Çiftsan Etiket? Will there be changes or extra precautions in your plan for the upcoming period? I think we witnessed a history. We owe gratitude to our heroic healthcare professionals working devotedly in this challenging process of national struggle. We extend our condolences to, and condole with their relatives. I extend the deep sympathy of our citizens who lost their lives and to their family. Unfortunately, the epidemic process brought along many negativities all over the world. Although we are among the countries that are least affected by this, serious disturbance has occurred to us and our staff like everyone else. The proliferation of international trade and transportation accelerates this process, of course. However, we think that it is possible to reverse the current situation at the same speed. Many restrictions have been introduced to stop spreading, but continuing production is inevitable. They should not stop the production of the general and personal hygiene, health, food, pharmaceutical industry and the supply chain serving these sectors. At this point, we gave our

employees the necessary briefings. We increased internal hygiene and disinfection procedures. While some of our staff continue to work in their homes with remote access, we have provided the staff working in the production department with our own means, without using public transport. We reduced the contact within the company to a minimum. No Covid-19 case has been detected in any of our staff so far. Of course, in this epidemic process, there was a serious demand increase in production due to the needs. Although it is thought that some of our staff working from home may cause a disruption in the business process, I can say that we have successfully managed this process with the technological and automation software we made in the past so far. How do you predict your industry will be affected by the epidemic process? What are your suggestions for the sector in this regard? In the first place, as in many sectors, I cannot say that there was no uneasiness in us. However, I can say that we were affected from this process at the minimum level with the measures we took as a result of the predictions we made. By making our necessary raw material stocks, we have taken this process under control with the measures we have taken in the factory. I am one of the optimistic ones who think that the label and packaging industry will get stronger from this process. The important thing here is to respond to the demands coming with the right planning and strong production in the fastest and highest quality way. Procurement of raw materials and stock required for this is done immediately when the pandemic process has just started, all the measures we have taken in the factory have caused us to respond quickly to the demands of our solution partners. We have provided important support in this regard, especially to the leading brands of the country producing hygiene products and cologne. Thus, we have acted as quickly as possible without any negative returns to the incoming requests and continued our production 24/7 without disrupting the deadlines. I think that all of us should act together in coordination to make this situation stable in the sector. As Çiftsan Etiket, I can say that we are always ready for this. Finally, what advantages and differences does Çiftsan Etiket offer to its customers? How would you summarize the most important features that distinguish you from your competitors? We are a reliable, innovative and devotedly hard-working company. With all the printing techniques we have done today and the success awards these prints have in front of global brands in the world, I think that our company shows where it stands in the sector. Çiftsan Etiket is the pioneer of many innovations from labels with the ‘Braille’ alphabet for visually impaired people, to special visible security inks with thermochromic and UV and Multi-Color Screen Printing. It contains many success stories within 14 years. Our company culture is at the beginning of these stories being born on this roof. I think our most important feature that distinguishes us is that we have a culture. I really care about this situation. What would you like to add? First of all, I would like to thank you for reserving us in your magazine and valuing our success. I hope our country will get stronger from this difficult process. I declare that we are ready to do whatever task we have on this matter and wish you a healthy life.

Economic Newspaper

June 2020 Monthly Economic Newspaper

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Please mention â&#x20AC;&#x153;Made in Turkeyâ&#x20AC;? when writing to advertisers

Turkey estimated to play greater role in post-pandemic global economy

Turkey’s role in the economy is set to grow in the wake of the coronavirus pandemic, said a key EU lawmaker. “The proven track record of Turkey in this process will allow the country to play a much greater role in the coming post-pandemic economy,” Ryszard Czarnecki, member of the European Parliament and founding chair of the EU-Turkey Friendship Group, told Anadolu Agency (AA) in an exclusive interview. Czarnecki said relations between the EU and Turkey date back decades to the country’s application for an association with the then-European Economic Community (EEC) in 1959, followed by the Association Agreement in 1963. He cited the words of then-European Commission President Walter Hallstein calling the agreement “an event of great po-

litical significance” and calling “Turkey is part of Europe.” “Despite being one of the first countries to produce an association with the European Community, Turkey was unable to move swiftly in the direction of further integration” in the half-century since, said Czarnecki, a member of Poland’s ruling Law and Justice Party (PiS). “Numerous complex political developments on the side of Turkey as well as the EU” were responsible for this, he explained. ‘EU, Turkey should reassess interests’ Czarnecki said geopolitical developments in 2020 have shifted the interests of both Turkey and the EU, and those interests should be reassessed and reworked by both sides. The EU-Turkey Friendship Group chair said the main topics of discussion between Turkey and the EU will be visa liberalization and modernizing the customs union. Turkey has pressed EU officials on the visa issue especially since March 2016, saying it was promised this under a deal to stem the flow of irregular migrants in the face of a crisis. Turkish officials and business leaders have also long argued that updating the outdated 1995 customs union with the EU would benefit the economies of both

sides. Post-pandemic economy Czarnecki stressed many things will be redefined and reevaluated when humanity wins the fight against COVID-19. “It is clear that governments, corporations and citizens will factor in health concerns and trade interruptions in a variety of ways,” he added. Czarnecki said Turkey can benefit from an EU-led European recovery program, focusing on rebuilding economies to make them more resilient. “This includes rethinking economic, political and social proximity politics,” he added. Pointing to the importance of Turkey’s geopolitical advantage, Czarnecki said: “Such geographical proximity gives Turkey the ability to deliver to Europe much faster compared to East Asian economies. Plus, by allowing their manufacturing to take place in Turkey, European producers can enjoy low-cost site visits.” “Although Turkey’s production costs are higher compared to some Far Eastern countries, it offers a favorable exchange rate,” he added. “With its proximity to the world’s most sophisticated single market, its high-level caliber workforce and business-savvy entrepreneurs, this is Turkey’s big chance,”

he said. EU-Turkey Friendship Group Czarnecki said friendly relations between his home country, Poland, and Turkey date back to Ottoman times. “We in Poland never forget that after the (1795) division of Poland, the Ottoman Empire always recognized the existence of Poland and kept a seat for the ambassador of Poland at the Sublime Porte,” he said. “I also would like to underline that our former Prime Minister Jaroslaw Kaczynski, the current president of our ruling party, always supported the accession of Turkey to the European Union,” he added. He said as the new chairman of the European Parliament’s EU-Turkey Friendship Group, he will be looking for ways to rekindle exchanges between Turkey and the EU under these new circumstances. “It will be in our mutual interest to try to bridge differences, learn from each other and look on what we can agree about,” he added. Czarnecki said: “The friendship group will try to deal with these issues by bringing together civil society from all sides, focusing on culture and sports,” adding: “We hope that we can contribute to improving the future relations of the EU and Turkey.”

Foreign loan burden on Turkish private sector decreases The Turkish private sector’s outstanding loans from abroad fell further in April compared to the end of last year, the Central Bank of the Republic of Turkey (CBRT) announced. Long-term debt hit $173.6 billion as of April, falling $7.4 bil-

lion from end-2019, with 41.9% held by financial institutions. Some 62% of Turkish private sector long-term debt was in U.S. dollars, 33.5% in euros, 2.8% in Turkish liras and 1.7% in other currencies. The private sector’s short-term

loans – debt that must be paid in the next 12 months – also fell $895 million to $8.1 billion in the same period. Financial institutions held 76% of the short-term loans, while 24% consisted of liabilities of non-financial institutions.

“Regarding the currency composition of the total short-term loans, 38.8% consists of U.S.

dollars, 34.3% consists of euros, 25.6% consists of Turkish liras,

and 1.3% consists of other currencies,” the CBRT said.

DOES, THE FIRST AND ONLY ANTIMICROBIAL HOSPITAL, YEDITEPE UNIVERSITY KOŞUYOLU HOSPITAL, WHICH WAS CONSTRUCTED WITH A SPECIAL MOLECULE, WHICH WAS COMPLETELY DEVELOPED LOCALLY, WAS APPLIED TO ALL MATERIALS, FINISH “THE FATAL NOSOCOMIAL INFECTION”?

Yeditepe University Koşuyolu Hospital has the feature of Turkey’s first antimicrobial hospital. Thanks to the patented special molecule developed at Yeditepe University Laboratories, zero hospital infections are targeted. Bedrettin Dalan, Founder and Honorary President of Yeditepe University, said, “Research shows that approximately fifty percent of deaths after surgery are caused by hospital germ. We focused on solving this problem. We’ve completely developed a local and nationally produced molecule. We applied this harmless germ-killing boron based molecule from door handles to floor coverings, from electrical outlets to wall paints, and to our furniture and equipment”, and he announced the war against the Fatal Nosocomial Infection at the opening ceremony of the hospital. Stating that Yeditepe University Koşuyolu Hospital is a guide hospital in the international arena as well, Dalan said, “We have applied the boron-based molecule, which we have developed in Yeditepe University Laboratories, which is the first in the world, that kills microbes and does not harm any human cells, to our furniture and equipment from door handles to flooring, electrical sockets and wall paints. Pointing out that hospitals should have minimum furniture and decoration to reduce the microbe to zero, Dalan said, “In none of our hospitals you can see details such as flashy waiting rooms, carved armchairs, carpet upholstery and velvet curtains. Because these details contain the germ in the hospital and trigger the infection. Since we do not want the microbe in our hospitals, you cannot see anything unnecessary in our hospital. I know that all hospitals will guide our hospitals in the future.” Declaring that they designed all corners of the hospital as concave or concave for free of germs and easy cleaning, Dalan said, “In Turkey, however, it has a washable beds in each hospital’s first Yeditepe University. After the patient leaves the room, the bed is washed with water at high temperature, disinfected with a special substance, and the new patient comes to his clean bed. We have invested 30 Million TL for this disinfection and microbe breaking process only. In addition, both hospitals have antimicrobial filters for ventilation.”