ISSN 1300-2260
www.img.com.tr FEBRUARY 2014 Year: 11 No: 118
The Turkish Central Bank has vowed to use interest rate hike to protect Turkish Lira
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NKARA- The Turkish Central Bank has vowed to use interest rate hike as one of its main policy tools, during midnight policy meeting of Jan. 28, in its fight to protect the Turkish Lira, while revising its inflation outlook for this year upwards. “Nobody should have any hesitation about the Central Bank will using all of its available tools. The bank will not hesitate to take steps to make lasting adjustments to tighten the
monetary policy if deemed necessary,” Central Bank Governor Erdem Başçı said on Jan. 28 during a press conference to present the bank’s first quarterly inflation report. Speaking ahead of an emergency Monetary Policy Committee meeting, Başçı said he expected to start using the interest rate tool in the monetary policy, depicting a U-turn from the bank’s insistence on avoiding a hike. “We know that tightening moves to halt excessive volatility are way more effective
Turkish Development Minister Cevdet Yilmaz
when they are backed by interest rates,” he said, taking heed of the foreign exchange reserve and currency conditions. “A rapid decrease of the [foreign exchange] reserves would have other adverse consequences as well. Now, after this point, the interest rate weapon should be put into use,” he said. “The foreign exchange sales might drop after a recovery in the current account deficit in February and the usage of the interest rate as a weapon,” he added.
“Turkey’s economy holds much promise”
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n an interview about the IMF’s regular annual report of the Turkish economy, mission chief Ernesto Ramirez Rigo said that Turkey’s geographical locayoung population, vibrant private sector basis for a promising out-
Turkish Central Bank Governor Erdem Basci
In line with the simplification decision taken at the Monetary Policy Committee Meeting
of the Bank, additional monetary tightening policy was announced. Page 7
NASDAQ OMX and Borsa Istanbul sign Landmark Deal
Turkey adopts inclusive development strategy
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evdet Yilmaz, Turkey’s Minister of Development, delivered a speech at the meeting entitled “New Manufacturing Region in Textile in 21st Century: Production Region Sensitive to Human and Environment. At the conference, he briefed about the 10th Five-Year Development Plan and future objectives aimed to be accomplished by 2023. Highlighting importance of value-added exports, Yilmaz said, “We will realize the export targets in line with higher quality, conforming to more standards, high income products, as well as more innovative, branding, design. In this scope, the textile sector will contribute to accomplish this target, not through more kilos and more tons. These targets would not be only realized via Istanbul, Ankara, Izmir. These provinces have prominence, but we should try to activate all provinces in this issue. Page 7
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MUSIAD members improve position in 2013
“Globally 2014 to be better”
IDDMIB mobilizes the ideas remain on the dusty shelves to enter into force
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he positive breeze in the global capital markets will affect positively Turkey as well, globally 2014 will pass better than 2013, Vahdettin Ertas, President of Capital Market Board (SPK), said. Vahdettin Ertaş Ertas said exceptional fluctuated development has happened in the global capital markets within recent ten years. The reason of this is a direction related with FED policy, trend change. Page 7
ASDAQ OMX Group (and Borsa Istanbul A.S. have concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul. Key aspects of the agreement include the provision of NASDAQ OMX’s most advanced and com-
plete selection of market technology solutions and advisory services, based on the globally market-leading Genium INET suite and all associated platforms and applications, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul. Further, the parties are to work closely together to cement Borsa Istanbul’s position and brand as the capital markets hub for the Eurasia region,
serving global issuers, investors, and corporations. As part of the agreement, NASDAQ OMX will take a five percent equity stake in Borsa Istanbul, with an option to increase this by an additional two percent; NASDAQ OMX will also receive a series of cash payments. The parties’ forward cooperation pathway may also include a minority participation by Borsa Istanbul in NASDAQ OMX.
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he growth expectation in 2014 would be bigger than the previous year, according to the survey conducted by Turkey’s Independent Industrialist and Businessmen Association (MUSIAD). The association also highlighted that reviving of the economic uncertainty in Europe; especially Turkey’s economy would be affected positively through foreign trade channel. In the scope of the medium term plan either by the international institutions or the expectation of MUSIAD, the foreseeable growth of Turkey in 2014 can be above of the previous year, the survey indicated. The survey continued, “Turkey grew fastest than the countries in the Eurozone. A positive development was enjoyed in the private sector’s investment expenditures, in the 3rd quarter increased 5.3 percent. Despite internal and external shocks, the increase in the investment was a strong message showing the private sector’s confidence in the market.” Page 5
Astana Chamber of Commerce pays a visit to ATO
Salih Bezci, ATO Chairman (R)
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hairman and members of the Board of Astana Chamber of Commerce, which was founded two months ago, visited ATO Chairman of the Board in his office. Dauren A. Zhaksybek, Chairman of the Board of Astana Chamber of Commerce said that they arranged a visit to Chamber of Commerce of the capital city of Turkey in order to gather information to give a direction to their works right after they completed the foundation period. Page 5
New rules for railway development and greener growth
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he Head of Istanbul Ferrous and Nonferrous Metal Exporters’ Association (IDDMIB) Tahsin Oztiryaki stated, not only they suffice supporting the new ideas and new patent studies, but also would reveal the patents, which did not meet with the production process, remain idle on shelves to the economy. In recent years, attracting attention with the contest of ‘Metallic Ideas’, which is regarded as the peak of events and innovative studies are carried out by the Istanbul Ferrous and Nonferrous Metal Exporters’ Association (IDDMIB) has acted to pioneer for one more unexpected work. Page 5
t ion , a n d provide the look. But faced with market turbulence and a recent slowdown in economic activity, Ramirez Rigo said, Turkey would do well to raise domestic savings, make progress on key structural reforms, and take steps to guard against possible shocks. Q- Could you briefly review Turkey’s economic performance so far in 2013? A- Economic activity picked up in the first quarter of this year due to successive interest rate reductions by the central bank and increased public sector infrastructure spending. The first half of the year saw growth accelerate to 3.7 percent, supported by the policy stimulus. The increase in economic activity was accompanied by an increase in imports which, together with still-subdued growth in exports, has led to a widening current account deficit. Page 8
IDDMIB Chairman Tahsin Oztiryaki (L) presents awards of the firms
he new Sector Understanding on Export Credits for Rail Infrastructure adapts the OECD’s widely-accepted rules on export credits to the sector-specific financing conditions of new railway infrastructure projects. The innovative and unique new framework is designed to meet the variable needs of public authorities and exporters, in both advanced and emerging economies, while helping promote the use of rail as a viable alternative to road and air transportation, in the context of energy scarcity, fuel prices and climate change. Page 4