Made in Turkey - Mart15 by Made in

ISSN 1300-2260

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March 2015 Year: 12 No: 122

Turkey determined to proceed with Southern Gas Corridor

European companies eye bypassing sanctions over Russia via Turkey

Babacan says world economic outlook ‘better’ in 2015

The government to mobilize funds for small and medium-sized enterprises

urkish economic activity was somewhat negatively affected by recent market volatility but its impact on January budget revenues was limited, Şimşek said in a written statement following release of the budget figures.

SMEs in order to help them establish robust branding strategies and conduct more detailed R&D activities, Prime Minister Ahmet Davutoğlu has said.| Page 2

“We will keep our cautious fiscal policy stance as we had done earlier. Our government showed a budget performance much higher than the targets in 2014, although two elections were made and the economic activity slowed down,” Şimşek noted. The Turkish Central Bank has the authority and responsibility to in-

Global gold demand down to five-year low in 2014 Global demand for gold dropped to its lowest level in five years last year, the World Gold Council said in a report released. Consumer demand for gold fell 4 percent from the previous year, as slow economic growth... | Page 2

Davutoglu: Istanbul’s 3rd airport to have vast green area Turkish Prime Minister Ahmet Davutoglu said that the largest part of Istanbul’s third airport area will be reserved as a green zone, where they will plant 5 million trees.

Credibility deficit makes its presence felt in world economy The global economy’s largest problem is a credibility gap, rather than budget deficits, said Deputy Prime Minister Ali Babacan at the first B-20 meeting abroad during Turkey’s G-20 presidency. | Page 3

15 million square-meters of the overall 80 million m2 area will be allocated for the facilities and the other 65 million m2 will be arranged with trees or landscape designs,” he told the press after he examined the ongoing construction works for Istanbul’s third airport, which will be the most important center of world air traffic in Turkey’s largest city.

Global growth needs kickstart, but where and how? “Global growth needs a kickstart,” exclaimed Canadian Finance Minister Joe Oliver, just before the G20 meeting started. It might have been helpful if he had indicated where we have to kick. World leaders gathered in Istanbul in close discussions with economists and analysts and all agreed that global growth is insufficient. | Page 5

Boasting a 150-million passenger annual capacity, the airport is expected to become one of the biggest in the world and the biggest air transfer hub in Europe. Davutoglu stated that around €10 billion has been invested in the airport project at the construction

phase, and it will total up to an amount of €32 billion with another €22 billion in the other phases.

“It is a great indicator of the level which Turkey’s economy, companies and the construction sector has reached that such a project of such a big scale was undertaken by Turkish firms,” he said. | Page 6

tervene on exchange rates, Deputy Prime Minister Ali Babacan pointed out. The Central Bank follows the development of the rate of exchange of the lira within the framework of controlling price stability, and it intervenes if necessary, Babacan, said in an interview with TRT -Turkish State Television. Ba-

bacan’s remarks came after the U.S. dollar increased against the Turkish lira over 2.50.

The international economic developments should be taken into consideration in the assessment of the rise of the dollar rate against Turkish lira, he underlined. | Page 4

Four Provinces Mostly Undertake Automotive Exports

Turkey’s four provinces which are featured as the base of automotive production achieved 85.25 percent of the sector exports in January The provinces of Bursa, Istanbul, Kocaeli and Sakarya have increased their share in automotive exports from 83.47 percent in January last year to 85.25 percent in the same month this year. Turkish automotive sector’s exports which were $1 billion 586 million in January 2014 raised $1 billion 730 million with 9.1 percent increase in the same month this year. | Page 3

Benchmark interest Turkey hits record-high tourist rate cut to 7.50 percent numbers in 2014 from 7.75 percent The number of people visiting Turkey as tourists reached an all-time high of around 37 million in 2014, pushing Turkey closer to Italy in the most visited destination chart, Culture and Tourism Minister Ömer Çelik disclosed. | Page 7

The Central Bank of Turkey announced a series of interest rate cuts. The benchmark policy rate was cut to 7.50 percent from 7.75 percent. The overnight lending rate was reduced to 10.75 percent from 11.25 percent. | Page 4

EconomicNewspaper

March 2015

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Letter From The Editor

Mehmet Soztutan Editor-in-Chief

Prosperity and progress In a recent World Bank report on Turkey, it has been claimed that “integration and inclusion” have dominated the country’s economic development. “Prosperity has been broadly shared across income groups in the society, and the size of the middle-class was doubled,” The report underlines. The document examines Turkey’s experience in transitioning from a lower middle-income to an upper middle-income economy, and looks at what has worked well and what needs to change. According to the report,Turkey’s economic integration in terms of the country’s melding into global markets has been a driver of economic progress. Moreover, Turkey used the opportunity of a deep financial crisis over a decade ago to reform its banks and its public finances – allowing public expenditure to move from debt service to public service.

to increase its exports in 2014. Credit rating agencies have upgraded Turkey’s growth forecast for this year due to a better-than-expected economic performance. They also noted this performance is also likely to be affected positively by a drop in oil prices over the forthcoming period. Turkey’s exports are estimated to record around $160 billion in 2014 and 2015 will be much better. There were problems in some export markets in 2014, from Russia to Iraq, but 2015 will be much better for Turkey’s exports, said Turkish Economy Minister Nihat Zeybekci.

The government to mobilize funds for small and medium-sized enterprises The government plans to mobilize funds for small and medium-sized enterprises (SMEs), in order to help them establish robust branding strategies and conduct more detailed R&D activities, Prime Minister Ahmet Davutoğlu has said. “SMEs are the backbone of the Turkish economy, as well as society. If income equality increases and there are no social problems, this is all thanks to SMEs,” Davutoğlu said, speaking at the Third Award Ceremony for SMEs and Entrepreneurs. A total of 100 million Turkish Liras in financial support to enable the SMEs to foster

their brands and corporate structures has been set aside by the government, he announced. He said 150,000 liras would be provided to selected SMEs to support their branding activities, and 1.5 million liras to foster their R&D activities. In addition, existing financial support for SMEs to boost their R&D activities will be increased. “SMEs know very well that the higher economic and political stability are, the stronger SMEs are,” Davutoğlu said, adding that Turkey has managed to “keep its political and economic stability for the last 12 years, despite serious global risks.”

“We live in such an unpredictable region, where everything can change in a matter of weeks. So many negative developments happened in 2014 that 2015 couldn’t be worse. We expect Turkey’s trade to prosper in 2015, especially with its southern neighbors,” he said at the Economy Ministry’s annual assessment meeting.

Turkey’s 2014 current account deficit narrows to $45.84 billion ISTANBUL - Turkey’s current account deficit has narrowed to $45.84 billion, shrinking by $18.82 billion from last year, in line with expectations, data from the Central Bank disclosed.

As for the foreign trade of the country, despite macroeconomic, political or geopolitical problems in the European Union, Russia and Iraq (Turkey’s largest So, a bright future lies ahead for trade partners), Turkey was able Turkey.

The current account deficit shrank by $18.82 billion in 2014, from 64.66 billion dollars in 2013, due to the oil slump and lira depreciation of around 30 percent over the same period. These two factors hit im-

Letters to the Editor turkey@ihlas.net.tr Complex and evolving story The Trans Anatolia Natural Gas Pipeline Rabah Arezki and Olivier Blanchard of the International Monetary Fund Research Department have recently pointed out:

Oil prices have plunged recently, affecting everyone: producers, exporters, governments, and consumers. Overall, we see this as a shot in the arm for the global economy. Bearing in mind that our simulations do not represent a forecast of the state of the global economy, we find a gain for world GDP between 0.3 and 0.7 percent in 2015, compared to a scenario without the drop in oil prices. There is however much more to this complex and evolving story. B.Burns/ Berlin

Golden Age Turkey’s economy experienced a “golden age” between 2002 and 2007 thanks to its robust maintenance of the independence of institutions said Kemal Dervis, the economy minister in 20012002 responsible for launching Turkey’s recovery from a huge financial crisis. “Turkey experienced a golden age economically between 2002 and 2007, thanks to the structural reforms that the country started to make after becoming a candidate state for EU membership in 1999. It is also thanks to the stance of the economic administration, led by [Economy Minister] Ali Babacan, in maintaining the independence of institutions adopting monetary policy,” said Dervis. I agree with him. It should be noted that the golden age was not over. M. Grange/Paris

The foreign ministers of Turkey, Azerbaijan and Georgia met in Turkey’s northeastern province of Kars to discuss energy and transportation projects. The Trans Anatolia Natural Gas Pipeline, TANAP is Turkey’s priority proposal, according to Turkey’s Minister of Foreign Affairs, Mevlut Cavusoglu. He focused on Putin’s announcement of the suspension of the South Stream natural gas project and his proposal for an alternative route through Turkey to send natural gas to Greece and to European countries. “We signed a memorandum of understanding with Russia but it doesn’t mean that TANAP stays in the background,” Cavusoglu said. These are all the right steps for the right direction. F. Harr/ Franfurt

Racism Racist, Islamophobic and extremist views in Europe would diminish if the European Union is able to overcome its economic problems,Turkey’s EU Minister Volkan Bozkır said. When asked about an increasing wave of racism and Islamphobia in Europe, Bozkır said EU member countries were the most influenced by the global economic crisis. Some political parties in Europe use Islamphobia as political target and they gain ground in many countries including Germany, Bozkır told reporters. I think this is the crux of the point. H. Bran/Basel

Global gold demand down to five-year low in 2014 ANKARA - Global demand for gold dropped to its lowest level in five years last year, the World Gold Council said in a report released. Consumer demand for gold fell 4 percent from the previous year, as slow economic growth in Asia dampened sales of jewelry. The council, a London-based non-profit association of the world’s leading gold mining companies, reported that sales of gold in Europe were also affected by the reduced value of the euro, and the price of gold in the region rose 14 percent. In Russia, where the price of gold surged as the value of the ruble plunged, sales of jewelry and physical gold fell off as well. The average gold price of $1,266 per ounce was down 10.3 percent compare with $1411 per ounce in 2013. Global jewelry demand, which represents more than half of total global gold demand, was down year-on-year to 2,153 tons -- a decrease of 10 percent. India, the largest consumer of gold in the world, saw jewelry demand surge 8 percent to 662 tons, the best year for jewelry since records began in 1995. This was “in spite of government measures designed to restrict gold imports being in place for much of the year,” the council said. In the U.S., where the economic recovery is well underway, demand for gold rose to highest for five years to 132.4 tons, an increase of nine percent from the previous year. The council said the U.S. market remains far below pre-crisis levels of jewelry demand, which between 2000 and 2006 averaged 360 tons per year.

Turkey’s gold demand stood at 68.2 tons last year, a decrease of 7 percent year-on-year. “Turkish government measures that were put in place at the beginning of the year to limit credit card purchases of gold had a discernible impact on demand: By the end of the third quarter year-to-date demand was 18 percent behind the same period of 2013. The easing of the restrictions in October gave a fillip to the fourth quarter, contributing to the largest year-on-year increase in Q4 demand since 2004,” the council added.

“The decrease in the current account deficit is mainly attributable to the $16.32 billion decrease in the foreign trade deficit, which is at around $63.59 billion,” said the Central Bank. There was also a $2.51 billion increase in the services surplus, which reached $25.35 billion, as well as a $263 million decrease in the primary income deficit, which was $8.72 billion. With regard to the government’s domestic debt securities, non-residents conducted net purchases of $370 million, a sharp drop from the net purchases of $4.13 billion in 2013. For bond issues in international capital markets, Turkish banks and other sectors borrowed a total of $10.2 billion and $3.18 billion, respectively.

Middle Eastern markets lost a combined 8 percent compared with 2013. Annual global investment in bars, coins and exchange-traded funds was 885 tons, a rise of 2 percent compare with 885 tons in 2013, and central bank purchases totaled 477 tons, a increase of 17 percent. It was the fifth consecutive year in which central banks were net purchasers of gold. Marcus Grubb, managing director of investment strategy at the World Gold Council, pointed out that Asian consumers now buy more physical gold. “What’s particularly notable about 2014 is that the striking shift in physical gold demand from West to East is now being followed by gold infrastructure development in Asia. New products and trading platforms were introduced like the Shanghai Gold Exchange International Board, the ‘Gold Send’ mobile app in Turkey and the new kilobar contracts in Singapore and Hong Kong -all designed to make gold more accessible to greater numbers of buyers in the East,” Grubb said.

ports and pushed the trade deficit down by 15.4 percent.

The deposits of nonresident Turkish citizens within the Central Bank recorded a net outflow of $2.33 billion.

Istanbul to host global energy regulation forum ANKARA - The sixth World Forum on Energy Regulation, which The Anadolu Agency is sponsoring, will host a special session on the G20, Turkey’s energy watchdog said. Organized by Turkey’s Energy Market Regulatory Authority, or EMRA, the forum will begin in Istanbul on May 25, 2015. The four-day forum aims to develop a common approach to energy regulation by bringing together developed and developing countries. The forum will host a special G20 session, as energy will be one of the main topics of the G20 agenda in 2015 under the

Turkish presidency, EMRA said in a written statement. Gulefsan Demirbas, head of EMRA’s strategic development department, said there would be an energy ministers meeting under Turkey’s G20 presidency, for the first time in history. “During the special G20 session at (the World Forum on Energy Regulation), we plan to discuss the access to energy in Sub-Saharan Africa,” Demirbas said. “Another topic of the session will be energy regulation.” Turkish President Recep Tayyip Erdogan is scheduled to make the opening speech at the event.

EconomicNewspaper

March 2015

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Credibility deficit makes its presence felt in world economy

Four Provinces Mostly Undertake Automotive Exports

The global economy’s largest problem is a credibility gap, rather than budget deficits, said Deputy Prime Minister Ali Babacan at the first B-20 meeting abroad during Turkey’s G-20 presidency. “The more rapidly we close this credibility gap, the faster we all build confidence. This will bring all of us robust and sustainable growth across the world,” he said. The B-20 Regional Consultancy Forum was held for the first time abroad during Turkey’s G-20 presidency, under the presidency of Babacan. The meeting was hosted by the head of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and B-20 Turkey, Rifat Hisarcıklıoğlu. Babacan praised the importance of regional organizations in boosting economic relations, including the Federation of Gulf Cooperation Council Chambers (FGCCC), which inked a cooperation deal with TOBB and held the first meeting with its Turkish counterparts in Istanbul in February 2012. Babacan noted Turkey wants to revive the free trade deal negotiations with the FGCCC again.

Turkey’s four provinces which are featured as the base of automotive production achieved 85.25 percent of the sector exports in January

Turkey’s trade volume reached $16 billion with the federation members, and their investments in Turkey have exceeded $10 billion, Babacan pointed out. “Trade ties are unfortunately seen less in North Africa and the Middle East when

compared to what is happening in Latin America or the Far East… As long as our region’s players could develop more economic ties with each other, this will also be good for our region’s political stability,” Babacan noted.

Turkey’s Ziraat Bank sees 22 percent profit growth in 2014

Turkish finance ministry steps up fight against shadow economy ANKARA - Anadolu Agency Turkish Finance Minister Mehmet Şimşek has announced a reform package which aims to reduce the shadow economy by 19 percent over the next three years. “We have already reduced the ratio of the shadow economy to the gross domestic product by 6 percentage points since 2002. Now it stands at 26.5 percent,” Şimşek said during a press conference held in Ankara Jan. 30. “By 2018, with the help of this new program, we aim to reduce the ratio of the shadow economy to gross domestic product to 21.5 percent.” Şimşek said unofficial employment was down 32 percent, and the government aims to cut it to below 30 percent by the end of program. “In 2002, unofficial employment was 52 percent. Now it stands at only 35 to 36 percent. This is also very high, but we should see the huge success here” Şimşek said. From now on, companies that employ unregistered workers will be banished from public tenders, he noted. Also, as part of the new reforms, customs houses will be renovated, every cargo vehicle crossing Turkish borders will be examined with x-rays to prevent smuggling and new rules will be introduced to regulate e-commerce.

The biggest contribution to the success of automotive exports, which pose locomotive in the country exports, came from the provinces of Bursa, Istanbul, Kocaeli and Sakarya. Foreign sales of these four provinces were $1 billion 457 million in January 2015. So, these provinces undertook 85.25 percent of the sector exports which were $1 billion 730 million. Those provinces’ export share was 83.47 percent last year in January. Hosting the giants of main industry such as OYAK Renault, Tofas, Karsan as well as supplier industry Bursa

ANKARA - Turkey’s state-owned lender Ziraat Bank saw profits surge by 22 percent in 2014 compared to 2013, reaching 4.05 billion Turkish lira ($1.6 billion). Ziraat’s CEO Huseyin Aydin said in a written statement Ziraat’s CEO Huseyin Aydin that the bank’s loans increased by 28 percent, reaching 142 billion lira ($57 billion) in 2014, including 28 billion lira for the agriculture sector. On Oct. 15, 2014, Ziraat Bank received permission from the Turkish banking regulator to set up a bank based on Islamic financial principles with a capital of $300 million. Ziraat, the country’s largest lender, employs more than 24,000 people in 1,700 branches. There are 57 branches in foreign countries including Germany, Bosnia and Herzegovina, Kazakhstan, Russia, the U.K., the U.S., Georgia, Bulgaria and Greece.

The provinces of Bursa, Istanbul, Kocaeli and Sakarya have increased their share in automotive exports from 83.47 percent in January last year to 85.25 percent in the same month this year. Turkish automotive sector’s exports which were $1 billion 586 million in January 2014 raised $1 billion 730 million with 9.1 percent increase in the same month this year.

exports were $543 million in January 2014, increasing 0.47 percent in the same month this year to $545,5 million. Bursa itself achieved one-third of the sector exports with the share of 31.53 percent. The closest follower of Bursa province, Istanbul increased in the sector exports 2.82 percent from $384,3 million to 395,1 million in January. Istanbul also got 22.83 percent share from the total automotive exports in January 2015. Kocaeli ranked first increasing its foreign sales, in January 2014 worth $217,5 million, this year same month its exports became $384,4 million with 76.69 percent and got 22.21 percent share from the sector’s total exports. Sakarya decreased its exports 16.12 percent from $179 million to $150,1 million in January compared to the same month last year. In the sector exports, these provinces followed by the provinces of Ankara, Izmir and Manisa respectively in the first month of 2015.

Market Share Of Automotive Exports Surge In EU

Turkey determined to proceed with Southern Gas Corridor BAKU - Turkey fully intends to proceed with the Trans Anatolian Natural Gas Pipeline and the Southern Gas Corridor projects, Turkish Energy Minister Taner Yildiz said. “These projects take advantage of Turkey’s geographic position, and Turkey will use that advantage in favor of its neighbors and EU members,” Turkey’s Minister of Energy and Natural Resources Taner Yildiz said.

Taner Yildiz Turkish Energy Minister

Speaking at the Consultative Council on the Southern Gas Corridor project in Baku, Azerbaijan, Yildiz said that his country is determined both politically and economically about the project. “The $45 billion Southern Gas Corridor is one of the most significant projects for the supply of natural gas to European Union countries,” said Yildiz. The 3,500 kilometer-long Southern Gas Corridor is planned to carry natural gas beginning at Azerbaijan on the east near the Caspian Sea, then passing through Turkish territory to reach Greece in the west, and then further on to Albania and Italy. The 2,000 kilometer-long $11 billion TANAP project will be a critical part of the corridor, as it will transport natural gas from Azerbaijan’s Shah Deniz 2 field on the Caspian Sea. “TANAP is

moving ahead of schedule,” Yildiz said, adding that Turkey has increased its share of the Shah Deniz 2 natural gas field. The pipeline will originate at the Georgia-Turkey border, then pass through Anatolia to reach Greece to carry 16 billion cubic meters of gas annually when it is completed in 2018. Six billion cubic meters of gas will be for Turkey’s domestic consumption.

TANAP has a potential capacity for upgrade, which is planned to reach 31 billion cubic meters by 2026. “All rings of the chain must be linked together,” explained Yildiz, stressing that each country of the Southern Gas Corridor has to contribute to the project. Yildiz said that the Turkish President will attend the groundbreaking ceremony of TANAP in March. The Energy Minister has also met in Baku with the current Vice President of the European Commission in charge of Energy Union Maros Sefcovic, and Minister of Industry and Energy of Azerbaijan Natiq Aliyev. Yildiz also met with Amos Hochstein, the special envoy and coordinator for International Energy Affairs leading the Bureau of Energy Resources at the U.S. Department of State, and the Minister of Productive Reconstruction, Environment and Energy of Greece Panagiotis Lafazanis.

The automotive sector, predominantly in the EU countries, sold its products in 149 countries, 12 free zones and autonomous regions in the first month this year In January, automotive exports increased 9.1 percent, as for the increase in the EU market surged 17.83 percent. Turkish automotive sector accomplished 77.28 percent of its entire exports accounting for $1 billion 730 million in the European Union countries in January. Last year in the same month the sector’s exports remained 71.55 percent in the EU market. According to the data compiled from Turkish Exporters’ Assembly, the automotive sector sold its products in 149 countries, 12 free zones and autonomous regions across the 5 continents in January. In January, automotive sector sent its products worth $1 billion 337 million to the EU countries which are regarded traditional market of Turkey. Increasing 9.1 percent in January, the automotive sector export increase rate became 17.83, an outstanding performance compared to other

markets. This also shows 27 EU countries potential against the rest 122 countries in the sector exports. The sector exports to the countries out of the EU countries recorded worth $393 million in January this year. In January, the sector exports increased 53.96 percent in the UK to $275,8 million; decreased 9.18 percent to $245,2 million in Germany; up 17.18 percent to $159 million in France; surged 20.28 percent to $154,7 million in Italy and 36.42 percent up in Spain to $91,5 million. As the sector exports increased in 14 EU countries, decreased in 13 EU countries in January 2015.

EconomicNewspaper

March 2015

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European companies eye bypassing sanctions over Russia via Turkey States, Japan and France, he said, adding that for smaller exporters Argentina, African countries, Iraq and Iran were rising as popular markets. “We especially need to find markets where we can sell our goods and services in the dollar, due to the recent changes in exchange rates,” he said.

Many European companies have requested to sell goods and services to Russia via Turkish companies to bypass the sanctions on Russia, but local companies have not accepted such offers, Turkish Exporters’ Assembly (TİM) head Mehmet Büyükekşi has said. “Many European companies want to continue to export to Russia, but they cannot do so due to the sanctions on Russia. I know many European companies have asked to export to Russia via Turkish companies, but Turkish companies do not want to do this because they do not find this strategy sustainable,”

He noted that Turkey’s exports to Russia decreased by 15 percent in 2014, while adding that Turkish exporters know Russia well and can make in-depth analyses to boost exports.

Büyükekşi said on Jan. 27 at a meeting to announce the TİM’s “Exporting Realizations for Q4 2014 and Expectations for Q1 2015.”

Russia has been one of the main target markets for Turkey’s biggest exporters in the first quarter of 2015, along with the United

Turkish Exporters’ Assembly head Mehmet Büyükekşi

The biggest problem for Turkish exporters is high input and energy costs, according to the TİM survey, with many saying that they want to see a recovery in the input costs to overcome the disadvantages arising from the exchange rate fluctuations and conflicts in the regional markets. Some 38.6 percent of Turkish exporters said they expected an increase in exports in the first quarter of 2015, according to the survey.

Benchmark interest rate cut to 7.50 percent from 7.75 percent ANKARA - The Central Bank of Turkey announced a series of interest rate cuts. The benchmark policy rate was cut to 7.50 percent from 7.75 percent. The overnight lending rate was reduced to 10.75 percent from 11.25 percent. The Turkish lira weakened to its lowest level against the dollar, about 2.47, ahead of the rate cut. Since the announcement, the lira has held at about 2.48. The rate cut for the policy matched analyst expectations, but the cut in the so-called “corridor,” a rate particularly critical for bank lending, was larger than analysts had predicted. Some economists and government officials have persistently criticized the central bank for its tight money policy.

Turkey to keep cautious fiscal policy and economic stability in 2015 Turkey’s January budget data was in line with 2015 targets, and Ankara will maintain a cautious stance in fiscal policies this year, Turkish Finance Minister Mehmet Simsek said. Babacan said that the international financial markets are passing through a period of very high volatility. The fall in the price of oil, the drop in the euro against the dollar were two examples Babacan cited. “So the dollar went much higher against the euro. In fact, the U.S. dollar has appreciated against many currencies in the world during period. Therefore, volatility is very high. Much economic volatility that Turkey is experiencing can be attributed to the high level of volatility in international markets,” Babacan disclosed. Babacan said that the government did not have an exchange rate target. “When the lira depreciated, or the dollar or the euro rises, this is partially reflected in inflation. The first priority of the Central Bank is price stability that is the fight against infla-

Meanwhile, Turkey’s industrial production increased by 2.6 percent in December 2014, according to data from the Turkish Statistical Institute (TÜİK).

tion. It is not possible for a Central Bank to say ‘the exchange rate does not concern me.’ Therefore, the bank is following the exchange movements closely and intervening if needed.”

by the Central Bank Monetary Policy Committee after listening to everyone,” Babacan added.

Babacan said: “If you ask us every minister in the government, ‘What is the exchange rate you prefer?’ you will get a different answer from each one. Normally none of them needs to say anything. Because the government does not have a formally pronounced exchange rate target,” Babacan said. “The final assessment done

“We do not believe that there should be a daily debate on exchange rates. Any country in which the rate is part of daily political polemics is ultimately harmed; there is a rising risk premium, because there is no stability in terms of interest rates.” “We believe that it is important that all communication about exchange rates be made from a single channel, from the Central Bank, which has the authority and responsibility for it,” Babacan said.

Industrial production increased by 2.6 percent compared with the same month last year, and 1.2 percent from the previous month. Mining output rose by 3.2 percent in December from the previous month, but output from utilities decreased by 1.9 percent. Manufacturing indexes increased by 1.6 percent in December. Industrial production decreased by 0.5 percent in the last quarter of 2014 compared with the previous quarter. In the last quarter of 2014, mining output increased by 6.6 percent, while utilities were up 2.5 percent compared with the same quarter of 2013.

THOUGHT OF THE MONTH

Humor

Democracy is a device that ensures we shall be governed no better than we deserve. If you’re looking for a job or looking to hire, you need a smile break. Here are memorable interview moments: • A job applicant challenged the interviewer to an arm wrestle. • Candidate announced that her long-term goals were to replace the interviewer. • Applicant said if he was hired he would demonstrate his loyalty by having the corporate logo tattooed on his forearm.

Unusual questions What is it that you people do at this company? Why aren’t you in a more interesting business? Why do you want references? I know this is off the subject, but will you marry me?

Unusual statements Once a week, I usually feel hot all over. I am fascinated by fire.

The Sleep Sector Wakes up nd in Istanbul for the 2 time! 22 - 25 October 2015

Istanbul Expo Center / Yeşilköy

Hall 9-10-11 Mattress Main Industry, Sub-industry, Machinery And Equipment Fair

www.sleepwellexpo.com | 0212 604 50 50 | www.voli.com.tr

I never get hungry.

I would have been more successful if nobody would have snitched on me.

know that I never left any of those jobs voluntarily.”

I think I’m going to throw-up.

“Sorry for yawning. I usually sleep until my soap operas are on.”

No matter how badly your last job interview went, it probably wasn’t this bad...

“I will definitely work harder for you than I did for my last employer.”

• Said he was so well-qualified [that] if he didn’t get the job, it would prove that the company’s management was incompetent. • Stretched out on the floor to fill out the job application. • Wouldn’t get out of the chair until I would hire him. I had to call the police. • Pulled out a Polaroid camera and snapped a flash picture of me. Said he collected photos of everyone who interviewed him. • An applicant came in wearing only one shoe. She explained that the other shoe was stolen off her foot in the bus.

“I don’t think I’m capable of doing this job, but I sure would like the money.” I demand a salary commiserate with my experience.” “Instrumental in ruining entire operation for a chain store.” “Received a plague for Salesperson of the Year.” “I am loyal to my employer at all costs.... Please feel free to respond to my resume on my office voice mail.” “It’s best for employers that I not work with people.”

What job am I applying for, anyway?”

“The company made me a scapegoat, just like my three previous employers.”

“My resume might make it look like I’m a job hopper. But I want you to

“As indicted, I have over five years of analyzing investments.”

Well!

Try not to become a man of success but rather to become a man of value.

THE ECONOMIST What is your advice?

EconomicNewspaper

March 2015

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Global growth needs kickstart, but where and how? ANKARA – “Global growth needs a kickstart,” exclaimed Canadian Finance Minister Joe Oliver, just before the G20 meeting started. It might have been helpful if he had indicated where we have to kick. World leaders gathered in Istanbul in close discussions with economists and analysts and all agreed that global growth is insufficient. There is, however, almost no consensus about what policies must be adopted to spur that growth. “We managed to contain the immediate effects of the Great Recession, but as stated in Brisbane by the leaders of the G20, growth is still slow, uneven and not delivering the jobs needed. Meanwhile, the potential of our economies has fallen and inequalities keep rising all over the world,” said Turkish Prime Minister Ahmet Davotoglu, in his opening message to the first meeting under the Turkish presidency of the G20. That is the challenge, but there was little agreement about the policy to overcome it. At the beginning of the conference, International Monetary Fund Managing Director Christine Lagarde warned that the decline in oil prices was not sufficient by itself to stimulate global growth – which the IMF forecasts will be only 3.5 percent in 2015 and 3.7 percent in 2016. “The oil price decline, which reflects to an important extent higher supply, mainly a rise in production in the United States and OPEC’s decision to maintain current production, will boost global growth by lifting private demand. However, this boost is projected to be more than offset by negative factors, including the drag in investment associated with diminishing medium term growth prospects,” Lagarde said in a paper released at the conference. Lagarde called for infrastructure investment and accommodative monetary policies to kickstart growth. These should be combined with structural reforms, such as easing labor market restrictions. She praised the European Central Bank’s program of quantitative easing intend-

Group Chairman: H. Ferruh Işık İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş. Adına Sahibi ve Sorumlu Genel Yayın Müdürü

ed to stimulate growth in Europe with a loose monetary policy. But U.S. Treasury Secretary Jack Lew proposed a different approach at the G20. He called for Germany and others in Europe to engage in deficit spending. Germany, in particular, should make an effort to see that other economies in the world besides that of the United States become strong. “In Europe, there’s a need for more fiscal policy. There’s a demand shortfall. Different countries have different amount of fiscal space. With the fiscal space, they need to use it to grow demand,” Lew told reporters at the conference. He commented that the ECB’s quantitative easing program would not be enough by itself to kickstart growth. None of these views are shared by German Finance Minister Wolfgang Schauble. Schauble thinks that Eurozone growth has already had its kickstart, and “is going along pretty well.” His government has previously declined proposals for increased spending to stimulate growth: “No short-term actions,” has been the German government’s watchword. UK Chancellor of the Exchequer George Osborne called for “forceful” economic policies when speaking to reporters at the conference. “We need forceful fiscal policies and forceful structural reform,” Osborne said. He complained that European governments “were not doing enough” to stimulate growth, and advocated infrastructure investment. Turkish Deputy Prime Minister Ali Babacan had advocated a commitment by G20 partners to specific national investment targets as part of efforts to boost economic growth. None of the G20 members, however, were prepared to make that kind of commitment. This became clear in the final statement made by the G20, which brings many of these different policy proposals together. “Prolonged low inflation alongside sluggish growth and protracted demand weaknesses in some advanced economies may increase the

risk of persistent stagnation. Accordingly, we will continuously review our monetary and fiscal policy settings and act decisively, if needed,” the statement said. This allows a considerable freedom of policy adoption, observers noted. “We agree that consistent with central banks’ mandates, current economic conditions require accommodative monetary policies in some economies. In this regard, we welcome that central banks take appropriate monetary policy action,” the statement said, adding that the ECB quantitative easing program “will further support the recovery in the euro area.” Into this welter of economic proposals came, a gloomy report from international credit rating agency Moody’s on how “headwinds from the Euro area, China, Japan and Russia will hold back economic activity. Moody’s Global Macro Outlook report predicted that the low price of oil will not provide much space for growth, and forecast a meager 3 percent global growth this year, with only 1 percent for Europe. Moody’s warned that growth in China, which is critical for global demand, will slow despite cheaper oil. The gradual and ongoing economic slowdown in China will continue, the report said, as higher energy taxes and government-controlled prices in some energy and transport sectors will dampen the impact of lower oil prices. Perhaps further discussions at future G20 meetings will lead to a more unified approach to policy. “But what seems to characterize most of the economic reasoning at and around the G20 is a lack of innovative thinking,” said Bessma Momani, an economist with the Centre for International Governance Innovation in Waterloo, Canada. Many of the policy proposals at the conference seem to be

Turkey more than doubles exports in last decade

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Does global crisis end?

Why the global crisis could not be overcome? Because of global village experiences many problems that require universal structural reforms to solve.

Thanks to strong growth trend overall, Turkey’s exports in last decade saw the $1.2 trillion mark with automotive, ready– made garments and chemicals sectors leading the way. Turkey’s automotive, ready– made garments and chemicals sectors lead the way in overall exports last decade which hit the $1.2 trillion mark, data from the Turkish Exporters Assembly shows. Growing significantly each year between 2005-2014 save for the 2009 when a global economic crisis hit the world economies, Turkey’s exports have more than doubled over the last decade. With the aim of reaching $500 billion exports annually by 2023, the centenary of Republic of Turkey, exports rose from 73.4 billion in 2005 to 157.6 billion in 2014, rising by more than hundred percent. Exports from automotive,

ready–made garments and chemicals sectors constituted almost 40 percent of Turkey’s total exports volume last decade. The automotive industry was the largest manufacturer of Turkish export goods, for a total of $22.2 billion in 2014. Other major exporters were ready–made garments sector with $18.7 billion and chemicals sector around $17.8 billion. The largest importer of Turkish goods last decade was Germany with over 120 billion. Germany was followed by the U.K. with $75 billion and Italy with $68 billion. In line with improving relations with Iraq, exports to this country which stood at a mere $2.8 billion annually in 2005 rose to $10.6 billion in 2014, pushing overall exports to Iraq over $64.8 billion, making it the fourth largest importer.

Canadian Finance Minister Joe Oliver

İbrahim Küpeli ibnahim.kupeli@img.com.tr

After the great depression that was happened in the 1930s, the second global economic crisis appeared late 2000s affecting the world. Since the beginning of the financial crisis to date, although a 7-8 year passed, but the expected recovery has not been achieved. Primarily breaking out in the USA, and then infected European economy.

Editors: Prof. Dr. Ismail Kaya Assoc. Prof. Mehmet Ali Özbudun Ibrahim Kupeli

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based on ideas that the politicians can defend when they get back home, Momani wrote in a blog on the organization’s website, and this may explain the lack of more striking and original proposals.

Across the world the negative developments, strife, uprisings, terror in various regions are continuing to affect economic activities badly in the aspect of those countries and the entire world. These countries have been left truly in consumer position. There is no enough production and growth. Despite human misery during the Great Depression of the 1930s is regarded far greater. But now the said countries’ people have been experiencing human misery worse than the Great Depression. If this assertion can be taken into account in the face of today’s condition, millions of people suffer from poverty, hunger, strife although the world has achieved much more richness over the 1930s. Unemployment in the 1930s was higher and in the absence of a proper social security net, those who were unemployed faced living on the breadline with only a very meagre unemployment allowances. But now some peoples cannot be able to lineup on the breadline regarding having no life safety...

When we assess the role of crude oil in the global economy, of course it has been taking a crucial duty in the growth. Since the mid of twenty century onwards oil has played one of the key role of economic activity across the world, regarding its outstanding importance in the supply of the world’s energy. However, this paradigm is now going to transform because of conjecture of the world. In this change, global warming, climate change and environment pollution, as well as key resources which are used in production have a crucial role. This change also urges the world gradually to shift from the fossil energy resources to renewables. Wind plants, hydroelectric plants, hydrogen and solar energy plants might increasingly replace the fossil fuels in the future increasingly. As long as this transformation maintains its effect, the role of crude oil would diminish in the global economy. Nevertheless, lower oil prices would contribute global growth; due to oil is currently a basic input of production. Meanwhile, if a permanent solution cannot be found for the countries in MENA region, a stable growth increase would not be possible. The World Bank expects lower oil prices would contribute to global growth and temporarily reduce global inflation in 2015. This condition is also expected to generate significant real income shifts from oil-exporting to oil-importing countries. Consequently, the world has been in a change situation in a few respects.

EconomicNewspaper

March 2015

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Turkish minister invites D-8 countries to develop car brand

Davutoglu: Istanbul’s 3 airport to have vast green area rd

Turkish Prime Minister Ahmet Davutoglu said that the largest part of Istanbul’s third airport area will be reserved as a green zone, where they will plant 5 million trees. The Cengiz-Kolin-Limak-Mapa-Kalyon Consortium, a joint venture of Turkish companies, won a tender for the third Istanbul airport in May 2013, promising to pay the state €22.1 billion, plus taxes, over 25 years starting in 2017. Davutoglu maintained that the natural topography of the area has been deformed and for the project to be completed the ground which was once used for mining activities has to be fortified first. TEHRAN - Anadolu Agency Turkish Industry Minister Fikri Işık has called on his counterparts from the D-8 group of developing countries to participate in producing a joint venture car brand. Speaking at a D-8 industry ministers’ summit in the Iranian capital Tehran, Işık said the total volume of bilateral trade between member states had doubled between 2000 and 2011, but the aim was to increase this figure to 20 percent of overall global trade by 2018. Total trade among member states was $130 billion in 2011. “We need to reflect this cooperation between member states with solid projects and move it to further levels. [As Turkey] we have started a domestic car project, and I invite member states to take more initiatives to develop our cooperation,” he added. Turkey has been considering a project to produce a national

car brand since 2010, partly aimed at boosting exports and thus reducing the current account deficit, a major headache of the Turkish economy. Meanwhile, D-8 Secretary General Seyed Ali Mohammad Mousavi said task force meetings held prior to the ministers’ summit, with the participation of private and public sector representatives from member states, were “very positive.”

As for the progress of the project, the prime minister said there will be four phases -- the first of which is scheduled to be completed in Oct. 29, 2017, once the first two runways and the terminal are built. “The terminal will be the largest in the world as it will be built on an area of 920,000 m2,” he said. At the end of the first phase, the airport is planned to enter service with an initial capacity of 90 million passengers on Oct. 29, the 94th anniversary of the founding of the Turkish Republic.

“With joint investments and projects, we can significantly contribute to the development of our economies. But we can’t do it without the participation of the private sector,” Mousavi said.

Davutoglu said the passenger capacity will reach 120 million in the second phase in the summer 2018 when the third runway will be ready for the planes.

The D-8 is an organization that aims to foster cooperation between Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey and to improve member states’ visibility and status in the global economy.

The premier further stated that the fourth phase consists of the drainage activities to strengthen the ground for the other facilities of the airport and green areas. “We assume that more than 150 airlines will use the airport,” he said.

The airport will reach the ultimate target of 150 million passenger capacity at the end of the third phase, he added.

During the project, Davutoglu said 3,000 pieces of construction equipment will be

used and 30,000 people will be employed. “When the airport starts operating, it will produce a total of 120,000 jobs,” he added. He reiterated that the project and the construction works will cause no damage to the environment or decrease the surrounding forested areas. The premier said that a name has not been decided for the historic airport yet, but said it will be designed based on the latest technology. Asked whether the increase in the U.S. dollar against Turkish lira will increase the cost of the project, he said that all plans were already made on a euro basis, so it will cause no such loss. The airport will be connected to the city center through a new highway, the upcoming third bridge on the Istanbul strait, and railway systems.

The airport will also act as a focal point for the Turkish Airlines, Turkey’s flag carrier, which is one of the fastest growing airline companies in the world, flying currently to over more than 200 international destinations. The new airport, whose construction has progressed through the work of over 250 domestic and foreign architects, as well as more than 500 engineers, is planned as a large complex including four separate terminal buildings connected via a rail system, eight control towers, six airfields, 16 taxi roads, a 6.5 million square meter apron, cargo and general aviation terminal, a parking garage with a capacity for around 70,000 cars, a medical aviation center, hotels, and a congress center.

Russian Direct Investment Fund and Turkey’s Renaissance Holding to jointly develop projects across Russian regions The Russian Direct Investment Fund (RDIF) and Renaissance Holding, one of the leading construction, development and investment companies, have agreed to jointly invest into projects across Russia’s regions.

Syrian enterprises on rise in Turkey’s economy ANKARA- Anadolu Agency

More than 26 percent of new companies started up in Turkey by foreigners in the first 11 months of this year were either set up by Syrians or partnered with Syrians, according to data from the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

ANKARA - The Russian Direct Investment Fund (RDIF) and Renaissance Holding, one of the leading construction, development and investment companies, have agreed to jointly invest into projects across Russia’s regions. The two parties will invest in the healthcare and infrastructure sectors, using public private partnership (PPP) models, and also the construction of new shopping centers in the regions. Kirill Dmitriev, CEO of the RDIF, said: “With operation in Turkey, Russia and the CIS, Europe and the MENA region Renaissance has vast experience in sectors that will help to support the development of Russia’s regions. Due to the Company’s expertise in infrastructure we intend to target projects such as the construction of healthcare centers, transport and commercial real estate projects including the development of new shopping centers in the re-

gions. We would also capitalize on Renaissance’ track record of initiating public private partnership (PPP) models and multi-year concessions in Turkey which we intend to implement in Russia.”

Dr. Erman Ilicak, Chairman of Renaissance Holding, said: “We are excited and honoured to establish this partnership with RDIF, a very reputable Russian institution. We pride ourselves on working with

world-leading partners in all our lines of business and RDIF has become one of them. Our targets are well aligned with RDIF’s and I am confident we will invest in many joint projects in the near future.”

Over 53,329 new companies or associations were started up in Turkey within the first eleven months of this year, of which 4,249 were foreign-partnered. Some 1,122, over 26 percent, of the foreign-partnered companies were founded directly by Syrians or partnered with local businessmen by Syrians Out of the total number of foreign-funded companies in November, 118 were funded from Syria, 36 were Iranian-funded, and 23 were financed from Iraq. Muhammed Shreem, from Aleppo, is only one of thou-

sands of Syrians who have fled their war-torn country. “We had a family import and export company in Aleppo. We have opened a new company in Mersin, where our family has been harbored. We export construction materials and stationery from Turkey to Aleppo, one of the largest cities in Syria, and Idlib province in northwestern Syria,” says the 43-year-old Shreem, who has been in business in Mersin for two years. However, local business owners have complained about the situation bringing unfair competition. “Syrians who have escaped from the civil war and taken refuge in Turkey should obey the rules of law in the country,” Talat Dinçer from the Mersin Tradesmen and Artisans Association said. Şerafettin Asut, president of the Mersin Chamber of Commerce and Industry, said Syrian firms are in every sector, from logistics to real estate.

EconomicNewspaper

March 2015

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Turkey hits record-high tourist numbers in 2014

Babacan says world economic outlook ‘better’ in 2015

ISTANBUL - Turkey’s Deputy Prime Minister Ali Babacan depicted a more positive global economic outlook for the remainder of 2015 compared to 2014, despite major concerns over slow progress in economic growth and low demand. Babacan, who chaired the meeting because Turkey is the interim president of the G20 group, spoke at a press conference of G20 finance chiefs meeting in Istanbul. “Overall, compared to the beginning of last year, we are now in a better position,” Babacan said.

Finance ministers and central bank governors gathered in Istanbul for a two-day summit, amid major doubts over sluggish global growth, more volatile currencies and deflationary pressures on some advanced economies. Babacan said a strong recovery in the U.S. and the U.K. and an overall decrease in EU unemployment rates are all part of the “better news.” But the minister also said that there

decline in oil prices, reflecting both supply and demand factors, will provide a boost to global growth, but with varying implications across economies.” The G20 countries called on countries to seize the opportunity of low-priced oil for further investment. Another point of concern has been the strengthening dollar against other currencies in the past six months, which has pressured emerging economies.

are “many risky areas.” The World Bank reduced its global growth forecast in January to 3 percent from an earlier prediction of 3.4 percent. “In some countries, potential growth has declined, demand continues to be weak, the outlook for jobs is still bleak and income inequality is rising,” the final communique of the meeting said. “Some advanced economies with stronger growth prospects

are moving closer to conditions that would allow for policy normalization,” the finance chiefs also noted. The rapid fall in oil prices was felt by the global economy, although its impact on economies varied. “The decline will increase the purchasing power of oil importing economies and will exert downward pressure on inflation, though temporarily,” the group said. “The sharp

Meanwhile, IMF chief Christine Lagarde urged for a rapid implementation of commitments made by G20 countries in Brisbane in 2014. The G20 group made more than 1,000 commitments as part of investment strategies to boost the global GDP by 2 percent and to tackle unemployment. Given the risk of persistent low growth and high unemployment faced by many countries, time is of the essence,” Lagarde said in a press release following the meeting.

ANKARA-Anadolu Agency - The number of people visiting Turkey as tourists reached an all-time high of around 37 million in 2014, pushing Turkey closer to Italy in the most visited destination chart, Culture and Tourism Minister Ömer Çelik disclosed. Çelik said Turkey had managed to attract 5.5 percent more tourists in 2014 compared to the previous year, despite the political and geopolitical crises in the region. “In 2014 the number of foreigners visiting our country rose from 34.9 million to 36.8 million, a 5.5 percent increase compared to the previous year,” he said, adding that the official tourist numbers and tourism incomes would soon be announced for 2014. Pointing out that there were Turkish citizens who are residents in Europe but visit Turkey each year, Çelik said that this year their numbers were roughly expected to reach 5 million.

“If we add this, the number of Turkey’s visitors will come close to 42 million. This is a significant record. We are progressing toward becoming the fifth most visited country from sixth spot,” he said. According to a World Tourism Organization 2014 report, Italy attracted the fifth most visitors with 47 million, one spot ahead of Turkey.

EconomicNewspaper

March 2015

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Cankurtaran Tunnel Construction Goes To Finish

Turkey’s gas imports to climb in 2015 Turkey’s natural gas imports for 2015 are projected to reach 52.2 billion cubic meters. Turkey’s natural gas imports for 2015 are projected to reach 52.2 billion cubic meters, an increase of 9.6 percent compared with last year, according to Turkey’s Ministry of Energy and Natural Resources. Gas consumption has been increasing continuously in Turkey because of the country’s developing economy, industry and increasing population, and Turkey imported 47.6 billion cubic meters, bcm, in 2014. The Petroleum Pipeline Corporation of Turkey, BOTAS, will import 20 bcm gas from Russia via the West Line and Blue Stream pipelines. Another 10 bcm will come from Iran and 6.6 bcm will be imported from Azerbaijan. The company also plans to import some 5.6 bcm from Algeria and Nigeria as liquefied natural gas (LNG). Additionally, other companies apart from BOTAS will import some 10 bcm from Russia. Turkey uses most of its natural gas for its electric power sector which accounts for nearly half of the country’s natural gas consumption. The industrial and residential sectors each account for approximately 20 percent. According to energy ministry, Turkey’s electricity generation relies on natural gas at around 45 percent, 25 percent from hydro plants and 12 percent each from domestic coal, lignite and on coal exports and the rest on other resources.

Turkey aims to turn eastern Black Sea into water tourism hub local tourists visiting the eastern Black Sea had jumped by a quarter over a year to 5 million in 2014, adding that the agency aimed to elevate this boost further through new planned investments.

TRABZON - A development agency is aiming to establish a “Blue Route” in the eastern Black Sea of Turkey with the aim of introducing new tourism alternatives to the region, which has recently witnessed a boost in the number of local and foreign tourists. The Eastern Black Sea Development Agency (DOKA) is considering turning the region into an attraction hub for cruise tourism and water sports with a comprehensive pro-

ject that foresees a minimum 200 million-Turkish Lira investment. DOKA General Secretary Oktay Kaldırım said the number of foreign and

The “Blue Route” project includes plans to build a cruise port in Trabzon, a water sports center in Artvin and a yacht marina between Trabzon and Ordu, rafting areas on creeks and projects to support sailing, Kaldırım said.

Cankurtaran Tunnel is being built as an alternative to Cankurtaran Passage in the province of Artvin, which links the Black Sea to Iran, to relieve difficulties in snowy and icy conditions The construction process of Cankurtaran tunnel - which will connect the Black Sea to Iran as an alternative way to existing Cankurtaran passage - has approached the end of construction.

district of Cankurtaran extending to Hopa-Artvin highways.

Kemal Cirit, governor of Artvin province in his statement said, Cankurtaran Tunnels are being constructed in the length of 5,200 Drilling works that were finished, meters one each including both concreting processes of Cankursides as going and coming between taran Tunnel have come to end the districts of Hopa and Borcka. in order to ease winter traffic When construction is finished the conditions which are nightmare of tunnel will be one of the longest drivers on the highway that connect highway tunnels of Turkey, meanBlack Sea to Iran. while Ovit Tunnel in the province of Rize of which construction will Having made its groundbreaking late 2010 and completed its drilling be completed later will leave behind this tunnel in terms of length, process last year, concreting processes of the tunnel in both sides of he added. traffic including going and coming “Drilling processes of the Canare continuing. Length of the both kurtaran tunnel finished in March tunnels are nearly 10 thousand 400 2014. Until today, 8 thousand 400 meters, while concreting works of meters of the tunnel were concrettunnels have been carried out in ed; the rest part is continuing. I the length of 8 thousand meters, the rest part of 2 thousand 400 me- hope we will open the tunnel for ters are aimed to be completed in a vehicle traffic as of the end of this year.” When the tunnel is finished short time. the transportation will be shrunk So, drivers will breathe easily on the 12 kilometers between Artvin and highway which is seen a nightmare Hopa provinces. The tunnel will connect the Black Sea to Iran via regarding snowy and icy period in the winter conditions along with the the eastern province of Erzurum.

TECHNICAL SPECIFICATIONS Model No Input Power max Vacumm Rated Voltage Air Flow Water Suction Capacity Pump Power Pump Pressure Extra Basin Volume Waste Basin Volume Container Dust Capacity Dust Bag Capacity IP Code Gross Weight Size

: 114H : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h : 1,5 L/S : 26 W : 2,5 bar :7L : 8,5 L :5L :5L : IPX4 : 13,5 kg : 410x510x593 mm

Standard & Poor’s lowers Russia’s credit rating to junk

: 114R : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h : 1,5 L/S : 26 W : 2,5 bar : 3,5 L :6L :5L :5L : IPX4 : 11,5 kg : 385x485x485 mm

Credit rating agency, Standard & Poor’s, announced that it downgraded Russia’s credit rating from BBB- to BB+ “negative.” This is the first time in over a decade that Russia’s rating has been reduced to the level of “junk.” According to the service’s announcement published on its website, “the Russian Federation’s monetary policy flexibility has weakened, as have its economic growth prospects.”

TECHNICAL SPECIFICATIONS Model No Input Power max Vacumm Rated Voltage Air Flow Dust Bag Capacity IP Code Gross Weight Size

: 114L : 1300 W : 1950 mmH2O : 220-230 V AC, 50/60 Hz : 200 m3/h :5L : IPX4 : 8,5 kg : 390x418x440 mm

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exchange market, with the ruble falling to 68.75 against the dollar, correcting itself morning to 67.98. Reacting to the news, Russia’s Minister for Economic Development Alexei Ulyukaev called the downgrade “unjustified” in an interview with Russia’s Rossiya 24 TV network.

“They have added risks which I consider unjustified, but nevertheless, this is a significant “The outlook is negative, redowngrade of the Russian flecting our view that Russia’s Federation’s rating,” Ulyumonetary policy flexibility kaev said. Standard & Poor’s could diminish further. We recent downgrade comes after could lower the ratings if exsimilar downgrades from Fitch ternal and fiscal buffers deteriorate over the next 12 months Ratings and Moody’s. The last time Russia’s rating had been faster than we currently exdowngraded to “junk level” pect,” the statement read. was in 1998, when the Russian government experienced a deThe news was met with a significant reaction in the foreign fault on its debt obligations.