Made in Turkey - Mayis15 by Made in

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May 2015 Year: 12 No: 123

Turkish packaging industry posts $366 million trade surplus in 2014

“Turkish automotive can be able to achieve its own brand” We have a dream for indigenous car brand characterizing its own design, technology; we will achieve this, Nihat Zeybekci, Turkish Minister of Economy| Page 2

Turkey, Kazakhstan aim to increase trade volume to $10 billion

“25 Prioritized Transformation Programs to hasten growth” P6

Turkey commits itself to sustainable growth and development IMF and World Bank praise Turkey’s G20 presidency

Plastic sector has huge opportunities The region will offer huge opportunities in the aspect of the plastic construction supplies in the future, Selcuk Aksoy, Chairman of PLASFED | Page 3

Cevdet Akçay, Chief Economist with the Turkish Yapi Kredi Bank

STANBUL- International investors show considerable interest in Turkey, Keith Durward, head of advisory at the global auditing firm KPMG Turkey, told the Anadolu Agency. Turkey is in the process of transforming its economy, experts said at the Financial Times Summit on the Turkish economy in Istanbul. “Economic change is necessary, and a new story for the Turkish economy is being written,” said Sinan Ulgen, an economist with the Center for Economics and Foreign Policy Studies.

Sales of automotive might Deputy PM Babacan: Critical work break record remains after global economic crisis WASHINGTON- Critical work remains ahead despite the world’s emergence from the depths of the global economic crisis, Turkish Deputy Prime Minister Ali Babacan has underlined at an economic gathering in Washington.

Successful exporters awarded Istanbul Cereals, Pules, Oil Seeds and Products Exporters’ Association awarded 40 successful exporters. The association has awarded the exporters who achieved exports most in 4 different categories of the sector. | Page 4

Better integration into world markets should help Turkey achieve this goal, Ulgen said. “A deepening of Turkey’s involvement in the European customs union would help Turkish industry to find investment and make the necessary transition.” Better integration into world markets should help Turkey achieve this goal, Ulgen said. “A deepening of Turkey’s involvement in the European customs union would help Turkish industry to find investment and make the necessary transition.”| Page 3

Unless any additional regulation would be made, this year the sales of automotive would reach the historical highest score, according to the comment of Ali Kibar, Chairman of Hyundai Assan. He stated a great sale happened in light commercial vehicle segment and passenger cars. Pointing out the total market would likely achieve the best historical score if any additional regulation would not be enacted, Kibar recorded a new record might be in question.| Page 2

“Although the worst may be behind us, developments are not yet satisfactory. Structural reforms are missing, making the global economy perform lower than its potential,” Babacan said on April 16.

The global financial crisis of 2007-2008 was the worst since the decade-long Great Depression of the 1930s, with governments - particularly in Europe and Japan - still struggling to recover. “The global economy has not yet fully recovered,” Babacan said, noting that after the financial crisis, the G-20 emerged “as the main platform” for dialogue on global economic and financial issues. Turkey assumed the G-20 presidency last December, vowing to fight | Page 6

Turkish 4G to come MUSIAD opens office in New York into service by start

World Bank outlines action agenda for food system With 800 million people going to bed hungry every night, countries combatting hunger must build better food systems that raise agricultural productivity in rural areas...| Page 7

Turkish Airlines carries 12.8 million in first quarter ISTANBUL - Turkish Airlines, the country’s national flag-carrier, has announced it increased its total number of passengers by 6.5 percent in the first quarter of 2015 compared to the same period of the previous year. The total number of passengers in the first quarter of 2015 was 12.8 million compared to 12 million in January-March 2014, according to a statement from the company on April 14.| Page 7

Turkey’s Independent Industrialists and Businessmen Association opened an office in the city of New York, the USA. A group of businessmen attended to the inauguration ceremony. Speaking at the ceremony, Ertan Yalcin, Turkey’s general consulate to New York, multiplying of businessmen organizations in the USA made them happy. Telling activities of MUSIAD what they accomplished on behalf of business development, Nail Olpak Chairman of MUSIAD, said that they had taken thousands of kilometers road and tried to let Turkish enterprises to be known across the world. . | Page 4

of 2016

Turkish fourth-generation (4G) telecom services are envisaged to be operational by the first day of 2016, Communications Minister Feridun Bilgin has said. Speaking in an exclusive interview on April 14, Bilgin said GSM operators had been asked to ready their networks before the end of 2015. The Information and Communications Technology Authority of Turkey (BTK) announced on April 10 the tender for 4G frequency bands is scheduled to be held on May 26. | Page 6

EconomicNewspaper

March 2015

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Letter From The Editor

Mehmet Soztutan Editor-in-Chief

Commitment to growth and stability Commitment to sound economic policies since 2003 has placed the Turkish economy in a good position to embark on a sustained path of growth. Progress has been achieved in reducing inflation and real interest rates, improving public finances, restructuring the financial sector, improving the business environment, and reforming the public sector.

arm’s length transactions with traditional, serially managed supply chains. The economic program of the Government reflects the fundamental economic principles in line with the global challenges. These principles envisage:

The market economy operating with its institutions and rules; the State staying out of economThus, Turkey became an attrac- ic activities to function only as tive location for foreign invest- a regulator ; privatization as an ment because of its emerging important means toward a rarole as a springboard for foreign tional market-based economic companies to access the newly system; structural transformaemerging markets of the Mideast tion of the economy coupled and Central Asia via entering with a brand-new export drive joint ventures with Turkish part- through globalization and interners. national competition; and foreign direct investment not only to tap Actually, competition appears foreign savings but also to gain from all corners of the globe. foreign international know-how Customers demand more. To and technology. respond, manufacturers in Turkey are reducing costs and in- The Government also promised creasing responsiveness through to draft a new constitution and outsourcing, sourcing globally presidential system that make and implementing demand-driv- Turkey one of the world’s 10 en strategies such as pull-based largest economies by 2023 as it inventory management. All these was launched a party manifesto trends cause greater reliance on ahead of June elections. third parties to manage the manufacturing and delivery of prod- We wish the continuation of ucts to customers. Supply chain sustainable growth and developmanagement no longer involves ment.

Letters to the Editor turkey@ihlas.net.tr Greece’s bailout Deepening ties between Greece’s new government and Russia have set off alarm bells across Europe, as the leaders in Athens wrangle with international creditors over reforms needed to avoid bankruptcy.

“Turkish automotive can be able to achieve its own brand”

market liquidity risks, and from advanced economies to emerging markets. H.Gercenkon/ Paris

We have a dream for indigenous car brand characterizing its own design, technology; we will achieve this, Nihat Zeybekci, Turkish Minister of Economy Turkish automotive industry can be able to achieve its own car brand with its own design and technology, “However, it depends on financial issue. Turkish automotive industry will absolutely step into this project,” Nihat Zeybekci, Turkish Minister of Economy, said. In his speech delivered at the 40th Anniversary of Automotive Manufacturers’ Association (OSD), Minister Zeybekci the automotive industry is a source of proud for Turkey. On the journey of Turkey’s industrialization and technology, the automotive industry was the sector that has achieved a jump, Zeybekci said the automotive sector has been one of the rare sectors can be able to compete across the world. Along with the last investments automotive sector with its capacity utilization ranking 16th in the world, 6th in Europe was not enough, Zeybekci highlight-

Passenger car registrations up 8.6% in first quarter in EU

Oil prices

Oil prices have plunged recently, affecting everyone: producers, exporters, governments, While Greece may be eyeing and consumers. Overall, we see Moscow as a bargaining chip, this as a shot in the arm for the some fear it is inexorably moving global economy. Bearing in mind away from the West, towards a that our simulations do not repmore benevolent ally, a potential resent a forecast of the state of investor and a creditor. Europe the global economy, we find a is not pleased. Should it also be gain for world GDP between 0.3 worried? A drove of Greek caband 0.7 percent in 2015, cominet members will be heading to pared to a scenario without the Moscow. Prime Minister Alexis Tsipras will be hosted by Rus- drop in oil prices. There is howsian President Vladimir Putin. ac- ever much more to this complex companied by coalition partner and evolving story. We examine Panos Kammenos, defence min- the mechanics of the oil market ister and leader of the populist now and in the future, the imright-wing Independent Greeks plications for various groups of party.The timing has not escaped countries as well as for financial stability, and how policymakers analysts. should address the impact on Greece’s bailout extension ex- their economies. pires at the end of June and the worst kept secret in Brussels is S.Herts/ Madrit that Athens will need new loans Risks to financial stability to stay afloat. Risks to financial stability have B.Mert/ Brussels increased, but remain limited. Currency pressures have so far Financial stability been limited to a handful of oil Financial stability risks have ris- exporting countries such as Rusen amid a moderate and uneven sia, Nigeria, and Venezuela. Given global economic recovery—with global financial linkages, these rates of inflation that are too developments demand increased low in many countries. Divergent vigilance all around. growth and monetary policies across countries have increased Oil exporters will want to tensions in global financial mar- smooth out the adjustment by kets and caused rapid and vola- not curtailing fiscal spending tile moves in exchange rates and abruptly. For those without savinterest rates over the past six ings funds and strong fiscal rules, budgetary and exchange rate months, according to the IMF. pressures may, however, be sigIn part, this situation results nificant. Without the right monfrom the legacy of weakened and etary policies, this could lead to incomplete repair of private sec- higher inflation and further detor balance sheets. Risks are also preciation. rotating—away from banks to shadow banks, from solvency to D. Brenner/ Frankfurt

ed; “Turkey should be a hub of automotive in Europe. We are number one in Europe in some areas for example in some vehicles such as bus, truck. So that we can be able to be number one in automobile production as well. We can also come to a very distinctive point in the world. For that reason, our door has been left open completely in cooperation with you. After this it will continue to remain open.” Marking the automotive sector possessed features to mobilize many sectors; Zeybekci stated Turkey has self-confidence in the automotive sector to be able to compete with the world. “One of the most indicators to manufacture its own automobile Turkish automobile industry is capable to manufacture necessary everything for making a motorized vehicle. Currently, the automotive sector is a loco-

motive in R & D. In Turkey, there are the number of 176 R & D centers, one third of these have been in the automotive sector. This is also become an example for other sectors. As the government, we have also removed restrictions and limits concerning R & D centers,” he noted. Touching Turkish automobile industry had a dream to manufacture its own automobile with its own design and technology, Zeybekçi concluded, “Our industry will achieve this. Because of this qualification is available in Turkey. This is not a technology matter, mastership or engineering matter. This is only and only a financial matter. This should be scheduled. Once we install the factors related with this and economy, make this scenario and simulation, we can be able to manufacture the indigenous automobile very easy.”

Sales of automotive might break record Unless any additional regulation would be made, this year the sales of automotive would reach the historical highest score, according to the comment of Ali Kibar, Chairman of Hyundai Assan. He stated a great sale happened in light commercial vehicle segment and passenger cars. Pointing out the total market would likely achieve the best historical score if any additional regulation would not be enacted, Kibar recorded a new record might be in question. In this case, 80 percent of the passenger cars, which are met via imports, were upsetting; he said it is necessary to take care of foreign trade deficit with some sensitivity.

In March 2015, demand for new passenger cars in the EU increased for the nineteenth consecutive month (+10.6%), marking the highest monthly growth since last March and totaling 1,604,107 units In March 2015, demand for new passenger cars in the EU increased for the nineteenth consecutive month (+10.6%), marking the highest monthly growth since last March and totaling 1,604,107 units, according to the statement released by European Automobile Manufacturers. All major markets contributed positively to the overall expansion, especially Spain (+40.5%) and Italy (+15.1%) which posted double-digit growth, followed by France (+9.3%), Germany (+9.0%) and the UK (+6.0%) that also performed better than in March 2014. In the first quarter of 2015, new passenger car registrations increased by 8.6%, totaling 3.5 million units (3,527,704). All major markets posted growth, contributing to the overall upturn of the EU market. Registrations in Spain (+32.2%), Italy (+13.5%), France (+6.9%), the UK (+6.8%) and Germany (+6.4%) increased over this period.

Stating recovery has been seen in the European market, but income erosion would happen stemming from currency, the market has gotten activation in Spain, Italy and France, recovery is observed in the markets of Germany and the UK. There is also growth in the domestic market, Kibar continued; “The products which come via euro one year ago, today they are also in the same price. In this meaning there is a gradual recovery for consumers in purchasing power in terms of adopting prices which have been rated by euro. Our own production cannot meet the demands for exports. There is a demand over 50 percent higher than our current production number. We cannot meet the orders. For this we try to use our capacity utilization in better way, more productive. However profitability is different thing, order is different thing. The cost pressure is continuing in which raw material inputs’ price is carried out by dollar,

Ali Kibar, Chairman of Hyundai Assan.

as for sales price is made via euro. But, we see recovery signals in European countries in the aspect of order.” Over the question about effects of valuation of dollar in the global markets to the sector and its investments, Kibar responded; “Of course, daily currency fluctuations affect the sector and investments. If you take precaution by foreseeing in time, you could be one step ahead. There are sectors in which this can be implemented; also there are sectors that cannot be done. It does not mean hedge mechanism is used for every sector. Our exports dominantly are shipped to Euro zone. As disadvantageous condition of currencies, of course it makes up a weakness when calculation is made as dollar in Turkey’s income and expenditure balancing. We see consumption markets in Europe have begun to recover. In the upcoming months prices based on euro in same commodity groups would increase. This means inflation would raise some in Euro zone.”

EconomicNewspaper

March 2015

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Turkey commits itself to sustainable growth and development But the U.S.-EU treaty on trade is holding up such a deepened involvement for Turkey, warned Remzi Gur of the Turkey-U.K. Business Council. “This may change as negotiations continue after the election in Turkey,” he added. The Transatlantic Trade Investment Partnership, currently being negotiated between the U.S. and the EU, may change trade conditions for many trading partners.

The Government announced a new set of measures worth of 7.5 billion Turkish liras ($2.8 billion) (0.4 percent of GDP) to support growth and employment in April. It is estimated that the effect of the measures could accelerate growth. Meanwhile, IMF Managing Director Christine Lagarde and World Bank President Jim Yong Kim made the remarks at the conference titled “Towards a Global Management Mechanism,” organized by the Business 20 or B20 group, in Washington.

Gur pointed out that Turkish exports have an advantage over those from China for the European market. “We can deliver in Europe in three days, whereas the Chinese require a month for most export deliveries,” he said. Some experts said that the elements for transition were already in place. “Growth may be low in Turkey, but the quality of that growth is high,” said Cevdet Akçay, chief economist with the Turkish Yapi Kredi Bank. “The government’s medium-term economic plan serves as a good benchmark for our economic transition,” Akçay said. “The medium-term plan is a massive investment in the transition to a more knowledge-intensive, higher value-added economy,” Akçay noted. “The Government has made some tough choices for investment in the elements of higher-quality growth. Unfortunately, under current conditions, some politicians lose track of these goals. When this happens, they can come up with some unfortunate ideas from an economic point of view.” Akçay noted, “The policy goals are admirable; we can only hope that the government can stick to them.” There is no lack of skilled labor to help Turkey make this kind of transition, said Ihsan Necipoglu, General Manager for the

Plastic sector has huge opportunities

They have congratulated Turkey on its successful performance during its G20 term presidency. Lagarde said that Turkey’s G20 presidency was powerful. President Jim Yong Kim also appreciated Turkey’s ambitious goals in quality infrastructure and expressed his desire to visit the southwestern coastal province of Antalya, where the G20 Leaders’ Summit is to be held in November.

Cevdet Akçay, Chief Economist with the Turkish Yapi Kredi Bank

American chemical company, Dow Chemicals in Turkey. “Turkish workers are skilled and dedicated, and they can be very innovative. But more training is needed and with a considerable effort for innovation, the necessary transition can be achieved.” “The 12-month rolling current account deficit of Turkey declined to $42.8 billion (5.4 percent of GDP) in February 2015, from $46.9 billion (5.8 percent of GDP) in September 2014. The fall in energy prices and weak domestic demand are helping bring the country’s current account deficit down. Growth is expected to pick up in the second half of the year, and to accelerate to 3.9 percent in 2016.

Kim thanked Turkey for its efforts and guidance during its G20 presidency. He said that he was pleased to see how Turkish Small and Medium Enterprises accessed capital markets and added that a World SME Forum, set up by Turkey, would play a major role in shaping the G20agenda. Turkish Deputy Prime Minister Ali Babacan also attended the conference as special speaker, while Rifat Hisarciklioglu, Head of the Union of Chambers and Commodity Exchanges of Turkey, spoke at the opening.

Selcuk Aksoy, Chairman of Turkish Plastic Industrialists’ Federation (PLASFED)

The region will offer huge opportunities in the aspect of the plastic construction supplies in the future, Selcuk Aksoy, Chairman of PLASFED Turkish plastic construction materials completed the year 2014 successfully thanks to exports even though setback experienced in the domestic market, according to the report issued by Turkish Plastic Industrialists’ Federation (PLASFED). Last year, exporting 39 percent of the total 1,8 million tons production, as the production increased 1.6 percent in amountbase, in value-based decreased 1.6 percent to $7 billion 345 million. The exports increased 2.7 percent in value-base to $1 billion 825 million. As for the imports dropped 9.7 percent in value-base. In the domestic market, 93 percent of Turkish plastic construction supplies were met by the domestic producers and 39 percent of the total production was exported and the plastic foreign trade surpassed $1 billion 421 million.

In the statement, Selcuk Aksoy, Chairman of PLASFED, remarked plastic was not any product and the plastic sector was also not any sector and said; “Despite our structural problems, harsh global competition in cent level, our manufacturers, exporters run successfully. The region will offer huge opportunities in the aspect of the plastic construction supplies in the future. Unfortunately, there are very serious instabilities and clashes. We wish to be solved immediately through peaceful methods. However the hot clashes in our region sooner or later would end up. We should support our sector; from now on we let it ready. Because we are the nearest geography, the most developed economy that can be able to support these investments. So that we do not ignore our industrialists, let’s give the necessary supports to keep up with our sector.”

DOMOTEX TURKEY DOMOTEX is in Gaziantep; the center of carpet! 25-28.05.2015 Middle East Exhibition Center Gaziantep ■ Turkey

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Carpet exporters to compensate Decrease in exports temporary

Despite setback in the carpet exports including the southeastern province of Gaziantep one of the machine made carpet centers in the world in the first three months compared to the same period last year, the carpet businessmen believe that the shortage in the exports would be compensated in a short time. According to the data compiled from Southeastern Anatolia Exporters’ Associations (GAIB), last year accomplishing carpet exports worth $381,342 in 1Q, this year the exports have lost blood decreasing 18.3 percent to $311,418. Abdulkadir Cikmaz, Chairman of GAIB, announced that carpet has constituted a crucial item in the exports of the region and having sold to 120 countries such as the USA, China, the UK, Mozambique and Australia. Stating that stagnation in exports had been experienced almost in every item in 1Q2015, Cikmaz highlighted that the said decrease had various reasons related with economy across the world.

In the speech, Eyup Bartik, Chairman of Gaziantep Chamber of Commerce (GTO), said the carpets of the world have been woven in Gaziantep; provisional loss would be compensated within the year.

Abdulkadir Çıkmaz Southeastern Anatolia Exporters’ Associations (GAIB)

Remarking the exports would boost in the upcoming months, he said, “The problems in the world have caused export-decrease, but we aim to close this gap by the end of the year.”

Stating branded carpets of Gaziantep have renowned across the world, Bartık said, “I believe this success of Gaziantep to continue.” Indicating up and downs in currency parity had affected the carpet exports, Bartik said; “We export carpets to Euro zone. The exports are calculated as dollar. I think we will leave behind the troubled period after a few months.” He also highlighted the carpet sector would boost its exports by opening to the new markets, adding the sector representatives have been sacrificing greatly for that aim.

Hannover Fairs Turkey Fuarcılık A.Ş. Tel. +90 212 334 69 00 Fax +90 212 230 04 80 info@hf-turkey.com www.hfturkey.com

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THIS FAIR IS ORGANIZED WITH THE INSPECTION OF THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY IN ACCORDANCE WITH THE LAW NUMBER 5174.

EconomicNewspaper

March 2015

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Successful exporters awarded Istanbul Cereals, Pules, Oil Seeds and Products Exporters’ Association awarded 40 successful exporters. The association has awarded the Zekeriya Mete exporters who Istanbul Cereals, Pulses, achieved exports Oil Seeds and Products Exporters’ Association Chairman most in 4 different categories of the markets of Peru, Argentina, the sector. The most successful Chili. There is a high demand exporter firms, the senior level for Turkish products in these officials from the Ministries of countries. Since the beginning of Economy, Transport and Mar2015, we have been participating itime, as well as officials from in the fairs in the countries such other establishments came as Dubai, Germany and Japan. together at the prize ceremony. We will go to more countries to Istanbul Cereals, Pulses, Oil achieve the targets of 2023. As Seeds and Products Exporters’ for prioritized target countries in Association Chairman Zekeriya 2015 are Canada, China, South Mete highlighted that they had Korea, Brazil, the USA, Mexica, congratulated the exporters who Russia, Indonesia and Iraq. We were running, working and contry to direct our companies to tributing to the economy without different markets.” stopping. Stating 2014 was a difficult year, Mete continued, “Now there is no an easy year in terms of exporters. Competition has been at the top level; also 2015 looks like to go difficult, due to negativeness in our export markets. However our exporters will overcome these challenges opening to the new markets with their entrepreneurial personality.” In order to diversify export markets, Mete said; “Despite disruptions in the export markets, we continue to our way without losing market through market diversifying method. We are going to visit Latin America, Asian Pacific and Far Eastern countries to research what can be done. Firstly we start this work in Panama. We have oriented in

In last three years, we raised our exports from $1,6 billion to $1,9 billion. The year 2015 would be difficult, but despite this we struggle to achieve this target, he noted. Indicating they had been forced regarding costs, Mete said, “In confectionary products we import via $1,92; export via $2,5. Sugar factories take $61 for freight rate per ton. Last year, we organized National Industrial Food Design Contest. The group in license student category which won first prize we took them to ISM 2015 fair held in Germany besides twoyear education opportunity in abroad. This year we are holding 2nd edition of National Industrial Food Design Contest.”

MUSIAD opens office in New York Turkey’s Independent Industrialists and Businessmen Association opened an office in the city of New York, the USA. A group of businessmen attended to the inauguration ceremony. Speaking at the ceremony, Ertan Yalcin, Turkey’s general consulate to New York, multiplying of businessmen organizations in the USA made them happy. Telling activities of MUSIAD what they accomplished on behalf of business development, Nail Olpak Chairman of MUSIAD, said that they had taken thousands of kilometers road and tried to let Turkish enterprises to be known across the world. He highlighted, “Although Turkey and America have been closely allied for years, Turkey’s export to the USA is $6,3 billion, as for Turkey’s imports from the USA is $12,7 billion. This figure is not close to what it should be.” Pointing out low trade ratio between Turkey and the USA,

Mustafa Tuncer, Chairman of MUSIAD USA in his speech said that they would work much more in order to achieve Turkey’s exports target set for 2023. Remarking food imports of the USA accounting for $128 billion per annum, Tuncer said Turkey’s food export share in the USA food imports was 0.4 percent. Also Gaye Erkan who has been First Vice President of Republic Bank and shown a role model delivered a speech at the opening ceremony. Meanwhile, the best Turkish restaurant in New York was announced. Responders of the survey chose Turkish Kitchen first with 23 percentage, the Şip Şak ranked second and Ali Baba Restaurant third. New York Hospitality Alliance Director Andrew Rigie, restaurant advisor chef Ahmet Mithat Gulal; Riza Atas, Owner of Is-

tanbul Restaurant and Cuneyt Gurkan, COO of TOA Consulting informed the attendees about trends and opportunities in restaurant sector. Mustafa Yurdupak, Trade Attaché to New York and Musa Celik informed about developments in ethnic food sector. Regarding MUSIAD opening ceremony Turkish business circles in New York and its

surroundings came together. MUSIAD Chairman Nail Olpak, members of board Fuat Tosyali and N. Alper Esen, Levent Ali Yildiz, Omer Er, Cetin Guzel, Muharrem Atalan, Mustafa Albayrak, MUSIAD USA Chairman Mustafa Tuncer, the Secretary General Ibrahim Uyar and nearly 200 businessmen attended to the ceremony.

THOUGHT OF THE MONTH

Humor

Logic is a systematic method of coming to the wrong conclusion with confidence. A new manager spends a week at his new office with the manager he is replacing. On the last day the departing manager tells him, “I have left three numbered envelopes in the desk drawer. Open an envelope if you encounter a crisis you can’t solve.”

three identical looking parrots on a perch and says, “the parrot on the left costs 500 dollars”.

Three months down the track there is a major drama, everything goes wrong - the usual stuff - and the manager feels very threatened by it all. He remembers the parting words of his predecessor and opens the first envelope. The message inside says “Blame your predecessor!” He does this and gets off the hook.

The man then asks about the next parrot to be told that this one costs 1,000 dollars because it can do everything the other parrot can do plus it knows how to use the UNIX operating system.

About half a year later, the company is experiencing a dip in sales, combined with serious product problems. The manager quickly opens the second envelope. The message read, “Reorganize!” This he does, and the company quickly rebounds. Three months later, at his next crisis, he opens the third envelope. The message inside says “Prepare three envelopes”.

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A man goes into a pet shop to buy a parrot. The shop owner points to

“Why does the parrot cost so much,” asks the man. The shop owner says, “well, the parrot knows how to use a computer”.

Naturally, the increasingly startled man asks about the third parrot to be told that it costs 2,000 dollars. Needless to say this begs the question, “What can it do?” To which the shop owner replies, “to be honest I have never seen it do a thing, but the other two call him boss!”

to propose will reply by saying, ‘I resign’.” By three measures a manager is known: - The thickness of the carpet in his office. - The area of his desk. - The volume of his car’s engine.

Committee Rules Never arrive on time, or you will be stamped a beginner. Don’t say anything until the meeting is half over; this stamps you as being wise. Be as vague as possible; this prevents irritating the others. When in doubt, suggest that a subcommittee be appointed.

Failing organizations are usually over-managed and under-led.

Be the first to move for adjournment; this will make you popular it’s what everyone is waiting for.

The president of a large corporation opened his directors meeting by announcing, “All those who are opposed to the plan I am about

Committee: a group of men who individually can do nothing but as a group decide that nothing can be done

THE ECONOMIST What about economists?

Well!

-Those who cannot forecast interest rates, and - Those who do not know that they cannot forecast interest rates.

EconomicNewspaper

March 2015

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Turkish packaging industry posts $366 million trade surplus in 2014 Holistic approach for global growth İbrahim Küpeli ibnahim.kupeli@img.com.tr

As long as incoherent approach continues for the global problems, the expected growth would not be achieved. The pre-crisis performance could not be still achieved in the global growth; despite nearly 8 years have passed over the global financial crisis. According to the IMF, output across advanced and emerging market economies remains much lower than was expected in 2008, just before the onset of the global financial crisis and its growth path has also been lower. The IMF also highlighted medium-term (five-year ahead) growth expectations have been steadily revised downward since 2011 for both advanced and emerging market economies. ISTANBUL-Turkey’s packaging industry posted over $366 million trade surplus in 2014, keeping making a positive contribution to decreasing current account gap of the country, said head of Packaging Industrialists Association (ASD) and Petkim CEO Saadettin Korkut. “Our sector continues to decrease the share of imported goods gradually and focus on making production with higher added value. In this vein, we achieved to slash the packaging imports by 3 percent last year from the previous year and posted over $366 million trade

around $350-400 and the Japanese at $550, he said.

surplus,” he said at a press meeting on late April 7 to announce the 2014 results of the sector. Korkut noted that the global packaging industry grows by 3 percent in annual average and is expected to reach around $820 billion in volume by 2016 with the largest players, the U.S. and China. “As is the case across the world, the packaging materials’ consumption has been increasing in Turkey with the rise of middle-income population and the spread of urban life. The sector’s volume has now reached to around $19 billion,” he said.

Publisher: ISTMAG Matbaacılık Gazetecilik İç ve Dış Ticaret Ltd. Şti. Adına sahibi Sorumlu Genel Yayın Müdürü

The repeated downward revisions to medium-term growth forecasts underscored the uncertainties surrounding prospects for the growth rate of potential output.

Saadettin Korkut. Packaging Industrialists Association (ASD) and Petkim CEO

The annual packaging consumption per capita is around $240 in Turkey, close to the European average at around $250-300, but lower than the North American average at

“More innovative and more eco-friendly packages have now preferred by consumers around the globe, making the producers of such products more competitive. For instance, such products make possible for many countries to minimize the prodigality levels in food,” he said, adding that only 2-3 percent of foods go to waste in Europe, where the packaging industry is fairly innovative, but the same rate is around 50 percent in countries where the sector is underdeveloped.

As for the another point in terms of the growth is that in advanced economies the apparent decline in potential growth seems to have started as far back as the early 2000s and this situation was worsened by the crisis. Looking forward potential growth in advanced economies is predicted to increase slightly from an average of about 1.3 percent between the years 2008-14 to 1.6 percent between the years 2015-20. Despite this, growth is seen well below pre-crisis rates (2.25 percent during 200107) and stems from the negative effect of demographic factors on potential employment growth and the gradual increase in capital growth from current rates as output and investment recover from the

crisis. Meanwhile, in emerging market economies, potential growth is forecasted to decline further, from an average of about 6.5 the years between 2008-14 to 5.2 percent for the years between 2015-20. Fluctuations in oil prices are continuing. Nevertheless expectations from low oil prices would boost the global growth. The IMF’s projection for global growth in 20152016 would stand at 3.5 and 3.7 percent. While the IMF predicts the global economy would grow 3.5-3.7 percent in 2015-2016; as for the monthly oil market report of OPEC, the global growth would remain 3.4 percent in 2015 and 3.3 percent in 2016. Finally, the related global organizations struggle to let growth to get acceleration and for this they suggest caring innovation, jobs and real income of the middle-class, poverty reduction and greater economic fairness. However implementing these suggestions would not be possible. The current world conjuncture has a crucial role in foreseeable and expected global growth, without recovery in this ailing global condition to realize targets seemingly difficult. Uprising and terrorist actions mostly has been experienced in recent years in particular in MENA, the Middle East and North Africa region because of lasting solution could not have been found. The said events have a vitaleffect in the global growth. For this reason, unless a holistic approach is set up for the global challenges, being successful in the expected global growth might not be realistic.

Turkey luring international investors

H. Ferruh Işık Managing Editor: Mehmet Söztutan (mehmet.soztutan@img.com.tr) Editors: Prof. Dr. Ismail Kaya Assoc. Prof. Mehmet Ali Özbudun Ibrahim Kupeli Advertising Sales Staff: Talha Elitez (talha.elitez@imgajans.com) Advertising Consultants: Emir Ocal (emir.ocal@img.com.tr) Graphic Design: Tolga Cakmakli (tolga.cakmakli@img.com.tr) Correspondent: Enes Karadayi (enes.karadayi@img.com.tr) Chief Accountant: Mustafa Aktas (mustafa.aktas@img.com.tr) Subscription: Ismail Özçelik (ismail.ozcelik@img.com.tr) HEAD OFFICE: Güneşli Evren Mah. Bahar Cad. Polat İş Merkezi B Blok No:3 34197 ISTANBUL/TURKEY Tel:+90. 212 604 50 50 Fax: +90. 212 604 50 51 www.img.com.tr img@img.com.tr LIAISON OFFICES BURSA: Ömer Faruk Görün Buttim D Blok Kat: 4 No: 1267 BURSA / TURKEY Tel : (90.224) 211 4450 - 51 Fax: (90.224) 211 4481 KONYA: Metin Demir H. Ulusahin Is Mrkz. C Blok No: 603-604-605 KONYA / TURKEY Tel : (90.332) 238 10 71 Fax: (90.332) 238 01 74 PRINTED BY: İhlas Gazetecilik A.Ş. Merkez Mah. 29 Ekim Cad. İhlas Plaza No: 11/41 PK: 34197 Yenibosna - Bahçelievler ISTANBUL / TURKEY Tel: (90 212) 454 30 00 Fax (90 212) 454 34 83

LONDON - Anadolu Agency There remains a lot of interest in Turkey among international investors, a London Stock Exchange official told Anadolu Agency on Jan. 16. Borsa Istanbul, Turkey’s main stock exchange, signed a deal on Jan. 13 allowing the London Stock Exchange to list futures and options based on the BIST 30 Index and on leading Turkish stocks. The deal is subject to regulatory approval. Speaking to Anadolu Agency, official Nicolas Bertrand stated that Turkey’s geographical location and particularly its demographics were attractive for foreign investors. Bertrand said the new partnership would be able to help Borsa Istanbul develop its reach and to accelerate the pace of development. “The final objective of this agreement is to enhance the liquidity and reach of the Turkish exchange to the international community,” he added. “I think the international network of the London Stock Exchange can bring a lot to Borsa Istanbul, particularly in the field of index derivatives, the centerpiece of this agreement, where the listings of futures and options of the BIST-30 could become more accessible internationally. That will increase European liquidity on those products and will enhance the reach of the Turkish market in general,” he said.

03-06 Haziran | June 2015

CNREXPO - Yeşilköy, İstanbul, Turkey Döşemelik Kumaş, Evtekstili | Upholstery Fabric, Hometextile Kumaş, Hazır Giyim ve Aksesuarları | Fabric, Garment and Accessories Aydınlatma Ürünleri | Lighting Products Mobilya | Furniture Dekoratif Ürünler ve Hediyelik Eşya | Decorative Items and Gifts Ev Eşyaları, Züccaciye | Household Products, Houseware Elektrikli Ev Aletleri | Electrical Home Appliances Yapı Malzemeleri ve Ekipmanları, Mutfak ve Banyo Donanımları | Building Materials, Kitchen and Bathroom Fittings

600 Katılımcı / Exhibitors

Bertrand said the agreement did not include listing any Turkish firms.

Çin Ürünleri Fuarı / China Products Fair

“We are expecting that to happen in the course of the second semester. I think this range of products is currently what we see the attracting the most interest at the moment from our clients. And then we will work with Borsa Istanbul to further develop derivative products, moving into other derivative products,” he said. “Turkey is a developing market which is really successful as it developed at a very fast pace,” Bertrand also said, adding that the increased access to international investors would help speed up that pace.

www.chinahomelifeturkey.com

/chinahomelifeturkey /ChinaHomelifeTr /+Chinahomelifeturkey

Organizatör / Organizer: Sinerji Uluslararası Fuarcılık Ltd. / International Exhibitions Ltd. Darulaceze Cd No:33 Bilas Is Mrk B Blok D:42 Okmeydanı, Şişli, İstanbul-Turkey Tel:+90 212 210 99 86 | Fax:+90 212 222 34 96 info@sinerjifuar.com - info@chinahomelifeturkey.com

B U F U A R 5 1 7 4 S AY I L I K A N U N G E R E Ğ İ N C E T O B B ( T Ü R K İ Y E O D A L A R V E B O R S A L A R B İ R L İ Ğ İ ) D E N E T İ M İ N D E D Ü Z E N L E N M E K T E D İ R THIS FAIR IS ORGANIZED UNDER SUPERVISION OF TOBB (THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY) IN ACCORDANCE WITH THE LAW NO.5174

genel-165x250-logolu.indd 1

02/04/2015 13:40:21

EconomicNewspaper

March 2015

Please mention “Made in Turkey” when writing to advertisers

Most investors scared by cyberattacks more than ever

Turkey, Kazakhstan aim to increase trade volume to $10 billion ASTANA- Cooperation between Turkey and Kazakhstan assumes significance for the stability and security of the region, Turkish President Recep Tayyip Erdoğan has said speaking at a press meeting with his Kazakh counterpart Nursultan Nazarbayev

Survey finds data breaches cause most investors to consider dumping affected companies. A new survey published found that roughly four-out-of-five investors consider blacklisting businesses that are attacked by hackers.

to North Korea. Others, such as the attacks on Anthem and retailer Target, result in the hackers absconding with millions of customer’s personal information.

“Following a number of high profile breaches, we are seeing The report, conducted by consul- global investors waking up to the tancy firm KPMG, was compiled issue of cyber security,” Marshall from a survey of 133 institutional continued. “The ripple effect of investors from around the globe. this has seen investor appetite for The responding investors manage cyber businesses increase, with the survey revealing that 86 permore than $3 trillion in assets. cent of investors see it as a growth “Investors see data breaches as area.” a threat to a company’s material The survey found that the polled value and feel discouraged in investors believed that less than investing in a business that has had its sensitive information com- half of the boards of the companies they invest in are adequately promised,” Malcolm Marshall, the global head of KPMG’s cyber prepared for cyberattacks. The security practice, said in a release. investors also believe that 43 percent of board members do not Digital security has become a possess the appropriate skills and growing issue for investors, regknowledge to manage risk in the ulators and the general public Internet arena. in the midst of a series of high Essentially, the survey found that profile cyberattacks on compathe damage to a company’s repunies ranging from Sony Pictures tation caused by cyberattacks can Entertainment to health insurer be more destructive than the iniAnthem. Some appear to be potial hacking. By jolting investors, litically motivated and highly sodata breaches can cause longphisticated, like the Sony attack, which has largely been attributed term pain.

Urbanization stimulating expansion in Turkish construction industry

Both leaders voiced their target of boosting the bilateral trade volume to $10 billion. “It is a must for countries such as Turkey and Kazakhstan, symbols of stability, security and prosperity in their regions, to act together against the circle of fire,” Erdoğan said. The two leaders discussed regional and international matters, as well as bilateral economic relations since the first such meeting was held in 2012, when Nazarbayev paid an official visit to Turkey. “Kazakhstan has a key location concerning the connection of Central Asia to international markets through the Caspian Sea,” Erdoğan said, adding that any project resulting from the connection would contribute to the prosperity of the region. “Turkey wants to expand into Asia through Kazakhstan, while we want to expand into Europe and the Middle East through Turkey,” Nazarbayev said. He added that the two countries, which Erdoğan described as “the

Turkey’s population growth, which is happening at a faster rate in cities than in rural areas, will outpace that of its regional neighbors, boosting investment in commercial and residential real estate, Richard Marshall, an infrastructure analyst with BMI Research in London, said. “The most recent statistics to come out of Turkey are the production and turnover indices for the construction industry. These show steady growth over the last year, a clear positive for the sector,” stated an analysis conducted by the ITE Group. In 2014, the Turkish construction sector’s turnover increased by 4.6 percent over the previous year. In the last quarter of 2014, this rise continued as the turnover index improved by 0.9 percent compared to the third quarter, still slightly lower than the high point in the first three months. The first quarter of 2015 is expected to see an even greater rise, according

to the ITE analysis. Meanwhile, overall production rose by 3 percent in 2014, compared with 2013, according to statistics from the Turkish Statistical Institute (TÜİK). “Urban transformation is gathering momentum in major cities, particularly in Istanbul,” industry analyst Cameron Deggin told Anadolu Agency. “This is giving rise to major facelifts in old historic town centers gone to disrepair such as Istanbul’s Gaziosmanpaşa, where the volume of urban transformation transactions is the highest,” he added. Other Istanbul areas with these trends included Bomonti, Şişli, Kağıthane, Talimhane and certain parts of Fatih, Deggin said, adding that similar high profile projects are ongoing in all major cities across the country. “By the year 2020, urban transformation targets are set to have redeveloped up to 350,000 housing units,” Deggin predicted. With around 70 percent of Turkey’s population living in cities, the need for both housing and major infrastructure projects in those areas is critical, ITE reported.

two great countries of Eurasia,” aim to increase their trade volume to $10 billion from $3.1 billion in 2012. “I believe that we will soon overcome the existing regression of our trade volume,” Nazarbayev added. Some 1,600 Turkish companies have carried out numerous projects worth $20 billion to date, he also said.

Erdoğan’s visit, meanwhile, coincides with the 550th anniversary of Kazakh statehood, on which the Turkish president congratulated the “friendly and brotherly Kazakh people.” Turkey was the first country to recognize the independence of Kazakhstan on Dec. 16, 1991, and diplomatic relations were established in March 1992.

Deputy PM Babacan: Critical work remains after global economic crisis broaden their sources of financing in order to become more stable.

WASHINGTON- Critical work remains ahead despite the world’s emergence from the depths of the global economic crisis, Turkish Deputy Prime Minister Ali Babacan has underlined at an economic gathering in Washington. “Although the worst may be behind us, developments are not yet satisfactory. Structural reforms are missing, making the global economy perform lower than its potential,” Babacan said on April 16. The global financial crisis of 2007-2008 was the worst since the decade-long Great Depression of the 1930s, with governments particularly in Europe and Japan - still struggling to recover. “The global economy has not yet fully recovered,” Babacan said, noting that after the financial crisis, the G-20 emerged “as the main platform” for dialogue on global economic and financial issues. Turkey assumed the G-20 presidency last December, vowing to fight

ANKARA - Urbanization, combined with the demand for higher quality buildings, is driving growth in Turkey’s construction industry, analysts have told Anadolu Agency, amid speculation that the sector is a bubble set to burst.

Turkish President Recep Tayyip Erdoğan and Kazakh President Nursultan Nazarbayev

“In many countries, at least 50-70 percent of the employment actually comes from SMEs,” he said. The reports by the OECD analyzed SMEs in 34 countries and concluded that “alternative funding options must be developed and promoted to support investment.” Ali Babacan Turkish Deputy Prime Minister

global inequality. “The financial sector is now looking better than it used to. Although we cannot say it has fully recovered, it is at least in a recovery stage. Now it is time to refocus on the social and environmental aspects of our overall economic policies,” added Babacan, who is seen as one of the key figures steering the Turkish economy. Babacan also attended a meeting introducing new Organization

for Economic Cooperation and Development (OECD) reports about the importance of diversified funding for small and medium-sized enterprises (SMEs). Using Turkey as an example, Babacan said SMEs employ most of Turkey’s workforce. “Seventy-five percent of our employment and 60 percent of our exports come from SMEs,” Babacan said, adding that while essential for jobs, SMEs need to

Babacan presented the reports in Washington, alongside OECD Secretary-General Jose Angel Gurria, who had a rather pessimistic outlook on SME financing. “Small and medium-sized enterprises play a vital role in driving economic growth and producing jobs, but access to finance for these firms will remain a challenge for years to come,” Gurria said. Approximately the same number, along with major world leaders, are expected to attend the G-20 Leaders’ Summit in Turkey’s southwestern coastal province of Antalyain November 2015.

State-run Ziraat posts record high profit at 4 bln liras

ANKARA Turkey’s state-run Ziraat Bank posted a record high net profit at 4.05 billion Turkish Liras ($1.62 billion) in 2014 on net interest income of 8.6 billion liras with a 22 percent rise from the previous year. The bank said in a written statement to the Public Disclosure Platform (KAP) late Feb. 10 that its loan book expanded to 141.9 billion liras from 111.05 billion liras in 2013. The bank reached a total of 1,682 branches in the country in 2014 with 53 new branches, aiming at having 2,000 branches in the medium-term, general manager of the bank Hüseyin Aydın said in a written statement. “We perform services in more than 80 points in 16 countries

abroad and we aim to increase this number,” he said. “Our bank in Montenegro, of which all official permits have been received, and our Kosovo branch will be opened in the first half of the year. Our partnership with AzerTurk Bank in Azerbaijan already continues and in addition to this, we plan to open a new bank, for which we have obtained all permissions with a capital base completely owned by our bank, by the midst of the year,” he added. Aydın also said Ziraat Bank will be diversifying its financial services with the planned Islamic bank unit in 2015. He noted the bank had doubled its loan base for the last two years.

Turkish 4G to come into service by start of 2016 Turkish fourth-generation (4G) telecom services are envisaged to be operational by the first day of 2016, Communications Minister Feridun Bilgin has said.

Bilgin said the value of the 20 frequency packages in the tender was at least $2.43 billion and licenses would be valid until April 30, 2029.

Speaking in an exclusive interview on April 14, Bilgin said GSM operators had been asked to ready their networks before the end of 2015. The Information and Communications Technology Authority of Turkey (BTK) announced on April 10 the tender for 4G frequency bands is scheduled to be held on May 26.

4G telecom services enable GSM operators to broaden the scope of their offerings. It gives providers the ability to offer gaming services, high-definition mobile TV, video conferencing, 3D television and cloud computing by providing a high-speed internet connection to almost every kind of mobile device.

EconomicNewspaper

March 2015

Please mention “Made in Turkey” when writing to advertisers

World Bank outlines action agenda for food system

The report is titled “Ending Poverty and Hunger by 2030: An Agenda for the Global Food System.”

Kim added: “Taking these steps toward ending hunger can impact other important global issues – it will help end extreme poverty, tackle climate change, and end the scourge of malnutrition that robs many children of a better future.” The report was released at a Spring Meetings event to frame a conversation on “The Future of Food,” between Kim and David Chang, the world-renowned chef and founder of Momofuku restaurants. Their conversation focused on reducing food waste, improving the logistics of managing and transporting food, and boosting nutrition through sharing knowledge. Civil society leaders from Brazil and Zimbabwe described their work in feeding local communities. “The historical evolution of the global food system has made possible rapid urbanization and population growth,

Turkish Airlines carries 12.8 million in first quarter

degrees Celsius. This is also where food demand is expected to increase the most. Agriculture, forestry and other land-use changes account for about 25 percent of harmful greenhouse gas emissions, with emissions projected to increase. The report said the food system must increasingly deliver three wins simultaneously: higher agricultural productivity, greater climate resilience, and reduced carbon emissions.

With 800 million people going to bed hungry every night, countries combatting hunger must build better food systems that raise agricultural productivity in rural areas, invest in improving nutritional outcomes for young children and pregnant women, and boost climate-smart agriculture that can withstand a warmer planet, says a World Bank Group report released.

“This report is critically important because it provides an overview of key actions that should be taken to end widespread hunger,” said World Bank Group President Jim Yong Kim. “Countries should ensure farmers have access to markets, receive fair value for crops, and grow foods that will withstand the rigors of a changing climate. They should invest in food, health, and care for young children and pregnant women, and improve access to nutritious food.”

Jim Yong Kim World Bank Group President

contributing significantly to welfare improvements in the world,” the report said. “The impacts on poverty and hunger have been positive and significant. Yet we stand at a critical moment in history where we can and must help shape the evolution of the global food system to permanently end poverty and hunger by 2030. Climate change adds to the complexity of this challenge. The agenda is large and will require focused, multi-sectoral approaches, and stronger partnerships.” In particular, the report focuses on three areas that can have the greatest impact. The first is climate-smart agriculture. Climate change is projected to reduce crop yields by 15 to 20 percent in the poorest regions if temperatures rise above two

The second area is improving nutrition. Higher incomes improve access to food and nutritional outcomes, but to help end under-nutrition a broader approach beyond income gains is required. Agriculture will need to become more nutrition-sensitive, and nutrition-specific investments will need to be scaled up. The report cited analysis showing that scaling-up 10 proven, nutrition-specific interventions in 34 countries that have 90 percent of the world’s children with stunted growth could help reduce stunting by 20 percent and prevalence of severe wasting by 60 percent. The third area is strengthening value across food chains and improving market access. Food demand is projected to grow over the next 15 years—by about 60 percent in sub-Saharan Africa, and 30 percent in South Asia. The report says that poor farmers need to be better linked to markets to benefit from such growth. The report outlines policy and investment areas to help achieve this end. “We call for broad action by all on this agenda to end poverty and hunger by 2030,” said Juergen Voegele, World Bank Senior Director for Agriculture. “The World Bank is committed to partnership and to help shape a global food system that will deliver a healthier and more prosperous world, now and in the future.”

ISTANBUL - Turkish Airlines, the country’s national flag-carrier, has announced it increased its total number of passengers by 6.5 percent in the first quarter of 2015 compared to the same period of the previous year. The total number of passengers in the first quarter of 2015 was 12.8 million compared to 12 million in January-March 2014, according to a statement from the company on April 14. The number of passengers rose by 5.9 percent on domestic flights and 7 percent on international flights, the company said. The seat occupancy rate declined from the same period last year by 1.5 percent to 76.6 percent. Turkish Airlines also added 19 new destinations from last year,

giving it a total of 265 destinations worldwide, 43 of them domestic. The number of planes increased by 27 to 268 in the first quarter of 2015, the company said. Turkish Airlines expects to reach $12 billion in revenue and carry 63 million passengers in 2015, as announced by a written statement late Dec. 31, 2014. “By the end of 2015, the fleet size is planned to reach 293, including 214 narrow-body, 68 wide-body and 11 cargo aircrafts,” said the statement. Of the targeted 63 million passengers, 25.9 million are expected on scheduled domestic routes, 36 million on scheduled international routes, and the rest on charter and hajj flights, the company said.

EconomicNewspaper

March 2015

Please mention “Made in Turkey” when writing to advertisers

“25 Prioritized Transformation Programs to hasten growth”

Construction of Turkey’s first homemade satellite begins

The 25 Prioritized Transformation Programs which were announced by Turkish Prime Minister Ahmet Davutoglu will allow the establishment of a strong base to hasten growth and render the economy more robust, Hisarciklioglu, President of TOBB The 8th Turkey Commerce and Industry Council was hosted by the Union of Chamber and Commodity Exchange of Turkey (TOBB) President M. Rifat Hisarciklioglu at the TOBB Twin Towers with attendees of Prime Minister Ahmet Davtuoglu and relevant Ministers. In his speech Hisarciklioglu said they had managed a comprehensive work with a great effort and set macro and micro problems in 81 provinces and 160 towns. And then they had prepared solution proposals to the government. Following this, proposals for solutions to these issues have been formulated, classified according to the various relevant ministries or public institutions. Stating that PM Davutoglu always listens to their problems, Hisarciklioglu continued: “We are living in a time when global risks affect our region in both financial and geographical sense. In such times, our foundation must stand firm; we must keep

these programs and incentives will give renewed momentum to the economy and investments. We the Turkish private sector will work to make our country stronger and our nation richer as we always have and will continue to do. We will persist in working for our country, nation and community, taking us among the largest economies of the world together.”

M. Rifat Hisarcıklıoğlu TOBB President

up the morale and motivation of the private sector. The 25 Prioritized Transformation Programs you’ve announced will enable the establishment of a strong base. This will hasten growth and render the economy more robust.” “New incentive package has given the business community a morale boost” Hisarciklioglu em-

phasized that the Employment, Industry Investment and Production Incentive Package has given the business community a morale boost and enthusiasm. Stating that they are pleased to see many of the problems and proposals they bring up are addressed by this new incentive package, Hisarciklioglu said, “I believe that

PM Ahmet Davutoglu, Deputy PM Ali Babacan, Science, Industry and Technology Minister Fikri Işık, Labor and Social Security Minister Faruk Celik, Economy Minister Nihat Zeybekci, Food, Agriculture and Livestock Minister Mehdi Eker, Customs and Commerce Minister Nurettin Canikli, Development Minister Cevdet Yilmaz and Minister of the Treasury Mehmet Simsek, TOBB President Hisarciklioglu as well as various other interested parties were the attendees of the council.

ANKARA - The construction of TURKSAT 6A, which is Turkey’s first homemade telecommunications satellite, has started, the country’s only communications operator announced. “The satellite is developed and manufactured by 354 specialists under the leadership of the Scientific and Technological Research Council of Turkey (TUBITAK) in cooperation with Turkish Aerospace Industries (TAI), Military Electronic Industries (ASELSAN) and CTech,” TURKSAT’s chief

executive officer Ensar Gul told the Anadolu Agency. “The construction period will take five years and the launch of the spacecraft is planned for 2020,” Gul said. “We will follow the design and production processes closely. The project will cost about 548 million Turkish liras (approx. $205 million).” “The satellite will include Asia, all of Turkey, and Europe in its coverage area, with an expected on-orbit life span of at least 15 years,” Gul added

The recovery period for oil much longer than expected

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

Saudi Arabia, OPEC’s biggest producer, irresponsible for not regulating prices, president of energy consulting firm Nalcosa said.

Saudi Arabia, the biggest producer of OPEC, is not acting responsibly by refusing to control oil prices, while many leaders are pressuring the Saudi king to take action, he added. “There is an excess amount of oil in the market, and Saudi Arabia is producing “The world is experiencing a crisis more than is necessary to keep its worse than the oil crisis of 1970,” market share,” he said. Nordine Ait-Laoussine said. Pric- The country produced over 10 es have been falling since June of million barrels per day of oil in last year although demand hasn’t March, according to OPEC’s oil shown a significant increase, he report. The second-largest prosaid. ducer was Iraq with 3.6 million barrels per day. Saudi Arabia In previous years, OPEC was an is facing financial troubles, and important power in controlling those challenges could bring it the course of oil prices, he said. to act on oil prices, he said. “The “Now, OPEC has lost its puroverall wealth of the country is pose,” he commented. Instead slowly deteriorating,” he added. of having OPEC countries conThe recovery period for the price of oil will be much longer than expected, said the former Algerian energy minister and current president of Nalcosa, an energy consulting firm based in Geneva, Switzerland.

trolling prices, the cartel expects non-OPEC countries to reduce output, he said.

: 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

Halkbank buys Serbia’s lender for 10 mln euros 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

BELGRADE Turkey’s state-run Halkbank said it has signed a deal to buy a 76.76 percent stake in Serbian lender Cacanska Banka for 10.1 million euros ($10.9 million). Cacanska Banka has a 1.1 percent market share and assets of 263 million euros.

BOSB, Mermerciler Sanayi Sitesi 7.Cd. No:12, 34524 Beylikduzu, Istanbul/TURKEY Phone: (0212) 875 35 62 pbx - Fax: (0212) 875 36 64 www.iea.com.tr

said in early December 2014 it had failed to agree on a price with the relevant parties. Then in January 2015, the Turkish bank said it had renewed its interest in Cacanska Banka.

Some 28.48 percent of the bank is owned by the Serbian government, Serbia agreed on a deal with Halk- while the European Bank for Reconstruction and Development bank for the sale of a stake in Cacanska Banka after months of talks (EBRD) holds 24.99 percent. The International Finance Corporation before inking the agreement, Serowns 19.99 percent and the remainbia’s finance ministry said. Having placed an offer to acquire Cacanska ing 26.54 percent is owned by other shareholders. Banka in August 2014, Halkbank