Made In Turkey February by İstmag Magazin Grubu

President Gul: Turkish contractors have great operations all over the world

Turkish President Abdullah Gül

xpressing that contractors have made the most contribution and effort to Turkey’s development, President Gül stated that they are prepared to provide all forms of support for Turkish contractors to take on international projects. Page 3

Gulfood brings together the most influential food and beverage trade companies

he ‘off-set’ system which has seen success in the defense industry will now also be impleScience, Industry & mented in transportaTechnology tion, energy and health Minister Nihat Ergun tenders. The Ministry of Industry will soon be including a ‘domestic technology’ stipulation on large tenders which are expected to soar to the 20 billion dollar level. Page 6

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February 2012 Year: 11 No: 113 ISSN 1300-2260

www.img.com.tr

High-tech investments given impetus

Turkey confident on growth contrary to IMF IMF: Restoring confidence crucial to rebuilding world recovery apidly restoring confidence in both Europe and globally is crucial to protecting the battered international financial system and rebuilding the ailing recovery, threat-

IMF Managing Director Christine Lagarde

ened particularly by strains within the euro zone, panelists at a discussion on the global economic outlook said in Davos. “No one is immune in the current situation. It’s not just a euro zone crisis. It’s a crisis that could have collateral effects, spillover effects around the world,” IMF Managing Director Christine Lagarde told a panel discussion at the World Economic Forum. To get beyond the crisis, she said Europe must address three key issues—lack of growth, reduced competitiveness, and the need for greater integration. To restore confidence more immediately, the euro zone must develop a strong firewall to protect its members. “It is critical that the euro zone members actually develop a clear, simple, firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone so that the financing needs of that zone can actually be met.” Page 12

Fitch takes rating actions on six Eurozone sovereigns

itch Ratings has concluded its review of the six eurozone sovereigns it placed on Rating Watch Negative (RWN). The rating actions on the long-term (LT) and short-term (ST) Issuer Default Ratings (IDRs) are as follows: -Belgium LT IDR downgraded to ‘AA’ from ‘AA+’; Negative Outlook; ST IDR affirmed at ‘F1+’ -Cyprus LT IDR downgraded to ‘BBB-’ from ‘BBB’; Negative Outlook; ST IDR affirmed at ‘F3’ -Ireland LT IDR affirmed at ‘BBB+’; Negative Outlook; ST IDR affirmed at ‘F2’ -Italy LT IDR downgraded to ‘A-’ from ‘A+’; Negative Outlook; ST IDR downgraded to ‘F2’ from ‘F1’ -Slovenia LT IDR downgraded to ‘A’ from ‘AA-’; Negative Outlook; ST IDR downgraded to ‘F1’ from ‘F1+’ - Spain LT IDR downgraded ‘A’ from ‘AA-’; Negative Outlook; ST IDR downgraded to ‘F1’ from ‘F1+’ Page 14

Tourism Minister calls for boutique enterprises

NKARA - Turkish Tourism Minister Ertuğrul Günay says Turkey lags behind in small tourism facilities. To sustain success in the tourism sector, Turkey should focus on small “boutique” enterprises rather than conTourism Minister tinued investment in largeErtuğrul Günay scale facilities, Culture and Tourism Minister Ertuğrul Günay said. Speaking at a conference in Ankara, Günay said large hotels and holiday villages were cutting off the tourists from the local population and Turkey should now turn to a new kind of tourism that would capitalize on the attractions of smaller places across Anatolia. Page 9

predict a slight recession in the eurozone for AVOS- Turkey will not revise its this year, and this could be worse or better deforecast of 4 percent growth this year, pending on the scenarios, he said, according Deputy Prime Minister Ali Babacan to Anatolia news agency. This year will see said in Davos, dismissing the International the Turkish economy “walking, not Monetary Fund (IMF) projections that the running,” Babacan said. “We economy may barely expand. won’t allow the economy “Every institution has a different to fall into recession.” expectation, different asThe global environment sumption. The IMF is generis uncertain and there ally more negative while the are major decisions World Bank is a little more to be taken in developtimistic. No doubt that oped nations that detailed studies are done could change the for every country, but they outlook complete[predictions] are based on ly, Babacan said. the assumptions regarding political decisions,” About 40 percent he said in a televised of Turkish exinterview on the sideports go to EuDeputy Prime Minister Ali Babacan lines of the World Ecorope. Page 5 nomic Forum, adding that Turkey sees no need to change its growth forecasts. Both the World Bank and the IMF

Turkey’s exports expand by 10 percent in January

urkey’s exports achieved $10.555 billion in January 2012 with a 10 percent increase compared to the same month previous year. The leading industry in overall exports in January 2012 is autoTIM President motive industry with Mehmet Buyukeksi $1.609 billion with 8.1 percent increase. Turkey’s biggest export partners in January 2012 were Germany with $1.040 million, Iraq with $752 million, the UK with $626 million and France with $512 million. In accordance with the strategy of market diversification, export of Turkish goods to NAFTA countries increased by 52.9 percent to $535 million. Turkey’s exports to African countries also increased by 23.1 percent to $953 million. Turkish exports signed an encouraging in January 2012 with a 10 percent increase over the first month of the previous year at $10.5 billion. Page 12

Minister Simsek: Cooperation of TurkeyGulf, an excellent combination

urkey’s Minister of Finance Mehmet Simsek said Turkey and the Gulf countries feature Minister of a complimentary nature to Finance Mehmet Simsek each other as of economy, adding that accomplishing free trade agreement in a short time to favor for the region and Turkey. Page 13

Made in Turkey Economic Newspaper, February 2012

Letter From The Editor Mehmet Soztutan Editor-in-Chief

Turkey offers attractive investment opportunities

he World Bank sharply cut its world economic growth forecasts, adding that Europe was probably already in recession. Global economic growth is forecast to be at 2.5 percent this year and 3.1 percent in 2013, well below the 3.6 percent growth for each year projected in June. Growth in G-20 emerging economies is slowing more than expected, the recent IMF report underlined. Export growth is contracting and the sharpest declines have been recorded in emerging Europe, reflecting close linkages to the euro area. What about Turkey? Turkey stands by its forecast of 4 percent growth this year, Turkish Deputy Prime Minister Ali Babacan said, dismissing International Monetary Fund projections that the economy may barely expand. The global environment is uncertain and there are major decisions to be taken in developed nations in the next four or five weeks that could change the outlook completely, Babacan noted in a televised interview from Davos. The IMF is “generally more negative” on European growth prospects than other bodies and Turkey sees no need to change its forecasts, he pointed out. According to Muhtar Kent, the Turkish-American chief executive of Coca-Cola, Turkey will be a shining star in world economy despite slower growth. Actually, as for the future, sustaining the stable growth process, increasing employment, continuing the fiscal discipline, raising domestic savings, narrowing the current account deficit and as a result, strengthening the economic stability are the major priorities of the Government. Turkey would closely monitor developments in global economy and implement policies in line with its medium-term economic program. The Government would continue to implement policies to increase private sector’s investments, direct international investments and exports. With its young and well-trained workforce; rich natural resources; well-developed infrastructure; improved transportation, telecommunications and banking systems; rapidly growing domestic market; and dynamic and developed industry, Turkey today and in the future offers an attractive and secure investment opportunity to foreign investors.

Guardian of Euro keeps interest rate unchanged Letters to RANKFURT - Struggling to find a way out of the ongoing eurozone crisis, the European Central Bank has decided to keep its key borrowing rate unchanged. The European Central Bank (ECB) held its key interest rates steady as expected, leaving eurozone borrowing costs at historical lows as it assessed the impact of two straight months of rate cuts. The ECB’s policy-setting governing council voted to leave the rate for its main refinancing operations unchanged at 1.0 percent at its regular monthly meeting here, the first of 2012. The Bank, which cut interest rates in both November and December, had been widely expected to hold its fire this month as it continues to assess how effective the previous moves have been. Earlier, the Bank of England also kept its key interest rate at a record low 0.50 percent and opted not to change its stimulus plans despite the fragile state of the British economy. In December, on the same day that EU leaders met in Brussels in what was seen as a make-or-break crisis summit -- the ECB brought eurozone borrowing costs back down to 1 percent, effectively reversing two rate hikes last year.

On top of that, it offered banks in the region an unlimited amount of liquidity by loosening collateral rules, cutting the minimum reserve ratio and launching new three-year loans at super-cheap rates. With all that now feeding through into the system, the ECB would now want to wait and see how those moves pan out, analysts said. “That the ECB decided not to cut its repo rate for a third consecutive month is no surprise given the slightly firmer tone of some recent data and the fact that the rate is already back at its recession low of 1.0 percent,” said Capital Economics’ European economist Jonathan Loynes. On Jan. 10, figures showed that the German motor driving eurozone growth grew by 3.0 percent over the whole of 2011, even if growth petered to a halt in the final quarter. “It is possible that it will cut again over the coming months, although we think that 1 percent could well be the bottom again,” Loynes said. The bigger question, the economist argued, was whether Draghi would be any more open than he has been in the past to the idea of more decisive action to resolve the eurozone debt crisis -- in particular much bigger purchases of weaker members’ sovereign debt. A controversial bond-buying program launched under the ECB’s previous head, Frenchman Jean-Claude Trichet, is only temporary, Draghi has repeatedly insisted. He did so again in December and “We think it is unlikely that he will change his tune ,” Loynes aid. “The ECB may engage in some form of Quantitative Easing in time in order to meet its monetary policy objectives. But for now at least -- rightly or wrongly -- it remains very firmly opposed to suggestions that it should tackle governments’ fiscal problems for them.” The effects of the unprecedented liquidity measures also remain unclear at the start of the new year.

Turkish companies make acquisitions abroad STANBUL - Turkish firms have made a number of large over the past five years opting to buy the majority shares in the companies that they have sought, said a Deloitte report. Turkish firms in the past five years have made 68 foreign acquisitions totaling $7.5 billion in revenues, according to a report released by Deloitte Turkey. In 2011 alone, Turkish companies made 26 overseas acquisitions worth $2.9 billion. While the report highlights

Yıldız Holdings’ purchase of Godiva Chocolates as Turkey’s most noteworthy overseas purchase, Turkish firms have shown interest in the food and beverage, service, telecommunication, logistics, production and financial services sectors. Turkish firms are most interested in acquiring a 100 percent or majority share in overseas companies, the report said. Some firms prefer to invest with local partners familiar with the market.

The report also said the most important factors for Turkish firms to consider when investing abroad is their opportunity to gain access to new brands and labels, spicing up the market and gaining competitive advantage. “With a possible economic slowdown and shrinkage in financial resources, we could see a lull in overseas acquisitions,” said Deloitte Corporate Finance Partner Başak Vardar in the report. “However, for companies with sound capital, the fi-

nancial crisis in other countries could offer strategic oppportunities,” she added. The top five Turkish purchases from 2007 to 2011 were Anadolu Efes’ purchase of SAM Miller in Russia and Ukraine, Yıldız Holding’s acquisition of Belgian Godiva, Gübre Fabrikaları, Tabosan, Asya Gaz Enerji consortium’s purchase of Iran’s Razi Petrochemicals, Turkcell’s purchase of Belarus Telecom, and Yıldırım Holding’s purchase of CMA CGM, a French logistics firm.

President Gul: There are Turkish contractors all over the world President Abdullah Gul attended a reception held for the 60th anniversary of the founding of the Turkish Contractors Association. Continued From Page 1 oting that when he looks around at the surrounding environment he sees Turkey’s advancement and development, President Gul stated that this has been realized by the hands of Turkey’s contractors. Gul went on to state, “When we see

the great works done in the countries we visit, this makes us feel a separate sense of happiness. It is no longer solely the embassies that wave Turkey’s flag abroad, you also wave that flag. When I was the Minister of Foreign Affairs, from time to time people would ask me, ‘How many representatives do you have

in Moscow? We see the Turkish flag everywhere.’ When they didn’t know why, we would tell them about all of you.” President Gul used a sword to cut the 60th anniversary cake and later distributed plates to former chairmen of the Turkish Contractors Association executive board.

Turkish businessman Sahenk attributes Turkey’s success to political stability oğuş Group Executive Board Chairman Ferit Şahenk noted that Turkey has successfully survived the European crisis and states, “Turkey’s success is due to the political stability and

the strong leadership of the nation’s politicians.” “Turkey has embraced reforms and transformed. The country has switched from a state focused economy to a private sector focused economy. Certain

businesses were provided the opportunity to transform. We have pulled through two or three crises and have learned how to manage a crisis.” Speaking at Davos, Şahenk expressed that Turkey has

now reached more professional standards, “The factor that provides this dynamism: we are 80 percent professional, while the other 20 percent consists of flexibility and entrepreneurial spirit.”

the Editor turkey@ihlas.net.tr Crisis for whom? Here’s the problem that Davos is grappling with: previous trouble was localised. Asia here, Russia there, maybe a country or two in Latin America. This time round the economy is globalised, and the crisis is felt everywhere. The man who helps organise the bailouts argued that this crisis was “different, the scale is much bigger, the global impact is much bigger” while poor economic growth leaves governments with too few options to act. Business and banks, meanwhile, have another problem: we live in uncertain times. Risk is not a problem for Davos man and woman. They thrive on it because it holds the potential for reward.

M. Jungle/ Berlin

Economic uncertainty Uncertainty, however, is economic

poison. It stifles investment, undermines confidence and makes banks reduce their exposure to risk. And that in turn squeezes money out of the system. “How do you run a banking system without any riskfree assets, apart from German Bonds [government debt],” asked a banker, and explained how savers were pulling out of any investments that could be considered a risk. European leaders are under pressure to deliver a credible solution to the debt crisis after Standard & Poor’s punished their policies with stinging credit downgrades. Eurozone governments face an uphill battle as they scramble to avoid a messy debt default in Greece, boost a bailout fund considered too small to save bigger countries and seal a fiscal pact aimed at tightening budget discipline.

H. Gorgget/ Basel

Good news German Chancellor Angela Merkel dHere’s the good news. Just leave the rooms packed with bankers, regulators and economists, and you can’t shake off the feeling that they’re telling only half the story. One Davos session explored the opportunities for economic growth, and if the bosses of some of the world’s largest companies are to be believed, there are plenty. And the focus is on high-growth countries like Brazil and the emerging markets across Asia. “There are 1.8 billion people who can be called middle-class, of which 23% live in Asia. By 2030, 4.8 billion people will be middle-class, and 66% of that will be in Asia,” ventured the minister of an Asian government. And once people are in the middle class, they start to consume and drive economic growth.

G. Rigget/ Madrit

Multinationals It is anecdotes like this that excite Western multinationals, although they also see the limits of growth. In a few years the earth’s population will hit 9 billion people, and “only if we build sustainable supply chains, eliminate waste during the creation and delivery of products... can we underpin the growth of these markets,” said the boss of one of the world’s largest companies. Despite the hope, the uncertainty remains. 2012 is the year of the water dragon, ventured a Chinese executive. “Water dragons bring fortune, but if there is too much water, you’ll drown.”

D. Brenner/ Geneva

Made in Turkey Economic Newspaper, February 2012

Right Products to Right Markets

n a global economy, which is composed of national economies, accumulation of wealth is possible only by being more profitable in trade exchanges when compared to the profits of other nations. Similar to individual businesses, Turkey Inc., has to be obtain more from its exports than it pays for imports to close the chronic gap of the balance of trade. Balance of trade for any country is a result of the choices made by individual businesses basically on two areas. To be more profitable, every business has to find the most profitable and sustainable answers to the questions of what to export and where to sell them. Product and market selections are major challenge for successful export management. As in the cases of many of small businesses in this country, if they export only low-end products that are sold at highly competitive prices and their goods are sold only on price, it is difficult for them to produce enough profit even to meet their ends. About 95 percent of Turkish companies who have any deal with foreign markets, are in this category. Only tiny number of them sells high-end products in relatively high value-added categories and obtains a little bit higher volumes of profits over their sales and investments. Basically Turkey is an exporter of agricultural and industrial raw materials and some basic commodities. All are in the categories of low-end products. Strategically there is a need for change, to improve the product portfolio for exporting. Technological products, special service industries (such as hospitality, education and healthcare), and knowledge-based businesses have more potential for the future development in foreign business relationships. Traditionally Turkish exporters have been selling their goods in three groups of export markets, namely the European countries, its northern neighbors and the Southeastern countries. The However, European markets have the largest share and buyers of Turkish goods in these markets are large chains and industrial companies. Turkish manufacturing compa-

nies mostly are their suppliers of global brands and/or producing companies. Turkey is seen as their manufacturing factory for their international operations worldwide or their domestic markets. When dealing these Western buyers, Turkish companies have to be subject to any limitations, regulations, certifications, and even some invisible trade barriers in order to earn a few cents as profits. These markets are highly regulated and managed by professionally. However, other markets that Turkish exporters have deals with, are mostly lack of any order, standards or regulations for professional business transactions. Deals are managed almost with personal relations and on personal trust. That means both opportunity to make business and a threat for complete loss of the profits. Most of the exporting Turkish companies have been boasting with the number of countries that their goods are sold. However, none of them have profitable share in their export markets. This fact is one of the main reasons that Turkish companies could not get enough profits from their export markets. They should limit the number of their export markets in order to increase their presence, awareness and profits vis-à-vis their competitors both from Turkey and from other parts of the world. Bottom line is that, to be really profitable in export business, companies need to have developed solid strategies for international operations, to prepare their organizations, to have necessary skills and brains to deal with problems of international trade. They should very well know what could be sold in what country. It produces no profit to sell any thing in Prof. Dr. İsmail Kaya any market anyhow at any cost…

Orkide Cosmetics introduces Orkide Graffity Nail Crackle

stablished in 1973 as Polat Cosmetics Company and renamed as Orkide Cosmetics in 1986, the Company is renown for its innovative production in the Turkish personal care products. Starting its export activities in 1990, Orkide is now exporting more than 90% of its production. The most recent innovation of the company is crackling nail polish, which is one of the trendiest products of recent times. This inter-

esting product generates a beautiful effect by crackling a little while it is applied on nails. First, a preferred color of regular nail polish is applied on nails and then a time is spent until the polish gets dried. Then, an appropriate color of Graffity Nail Crackle is smeared over that layer. Drying fast, this layer crackles and produces an excellent effect on the nail. The final process is a polish is applied and it gets dried.

Turkish cities hit the top 10 fastest-growing list

urkey’s three largest cities claim a spot on the fastest-growing metropolitan economies list prepared by the Brookings Institution. İzmir, Ankara and Istanbul took the fourth, sixth and seventh places respectively Turkey’s three metropolises of İzmir, Ankara and Istanbul were among the fastestgrowing metropolitan economies, according to a report released by the Brookings Institution. Turkey’s western province of İzmir was ranked the fourth among the fastestgrowing metropolitan economies, the report titled “Global MetroMonitor 2011: Volatility, Growth, and Recovery” said. Ankara took sixth place, while Istanbul was ranked seventh. These three metropolises are also the largest among Turkey’s provinces. The report served as “an analysis of per capita income and employment changes in the 2010 to 2011 period for 200 of the world’s largest metropolitan economies, which account for nearly one-half (48 percent) of global output but contain only 14 percent of world population and employment.” The list was based on the Washington, D.C.-based Brookings Institution’s analysis of data from Oxford Economics, Moody’s Analytics and the U.S. Census Bureau. The institute is one of America’s oldest think tanks, which conducts research and education primarily in economics, metropolitan policy, foreign policy and global economy. Metropolitan areas in China, Turkey and Saudi Arabia dominated the list’s first 10 spots. The top performer was Shanghai, China’s industry, finance, trade and technology center. With an economy the size of Finland’s, Shanghai has seen income grow 9.8 percent and employment expand at a 5.8 percent rate in 2010 to 2011, the report said. Hangzhou, Shenzhen and Shenyang are the other metropolises that made the top 10. Meanwhile, Greek capital Athens was the bottom performer due to continuing debt woes of the country, which is in the brink of default. The report said, “90 percent of the fastestgrowing metropolitan economies among the 200 largest worldwide were located outside North America and Western Europe. By contrast, 95 percent of the slowest-growing metro economies were in the United States, Western Europe and earthquake-damaged Japan. “Metropolitan areas specializing in commodities and business and financial services within their countries exhibited the strongest performance,” the report said. “In Shanghai, per capita income grew by nearly 10 percent in 2011. Ankara, Turkey, saw employment grow nearly 6 percent. Santiago, Chile, posted at least 5 percent growth in income and employment,” said Alain Berube, the co-author of the Global MetroMonitor, in an article for CNN.

Made in Turkey Economic Newspaper, February 2012

İletişim Magazin Gazetecilik Sanayi ve Ticaret A.Ş. Adına Sahibi ve Sorumlu Genel Yayın Müdürü (Publisher and Editor in Chief): Mehmet Söztutan (msoztutan@img.com.tr) Editor Advertising Sales Staff: Advertising Consultants Correspondents: Technical Manager: Chief Accountant: Subscription:

Ibrahim Kupeli (ikupeli@img.com.tr) Mustafa Bekir Karaca (mbk@img.com.tr) Adem Sacin, Yılmaz Özkan Recep Arslantaş, Eda Şişik Emir OCAL ( eocal@img.com.tr ) Hakan Alkan (hakan.alkan@img.com.tr) Tayfun Aydın (tayfun.aydin@img.com.tr)

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Tailor-made solution

he world’s foremost institutions plunged into another recession in 2012. engage in economy have been When we glance at the foremost econoforeseeing, analyzing and advis- mies across the world the stance is outing for a possible crisis that has being felt lined according to the related reports like since the late months of 2011. Actually, this; the US economy is seen robust and when previous global economic crisis growth expectations have been increased appeared in 2008, some of the commen- from 1.7% to 2.2% in 2012. tators had implied that the crisis would The Euro-zone seems to continue its demaintain its effect up to 2013. celeration and growth expectations for The institutions, which have perceived this year have been lowered to 0.2% from the steps of the economic crisis, have 0.4%. given their priority to extinguish the fire Japan’s recovery is observed fragile, but of the economic crisis and to make up growth is expected to remain unchanged firewalls for the possible upcoming crisis at 1.9%. for this year. Growth in China remains resilient and, If the necessary precautions are not given while slightly slowing, expectations have to the fragile countries’ economies in been lowered from 8.7% to 8.5% for time, the fears are that joblessness and 2012. other social displeasing events would ap- India is now forecasted to grow by 7.4%, pear. revised down from 7.5%. Another fear is that the Economic activity in world was much more inthe Middle East and terconnected than ever and North Africa is expectcontagion spreads very ed to accelerate in 2012fast. 13, driven mainly by the For this reason, the experts recovery in Libya and recommend the economic the continued strong rebalancing and strengthperformance of other oil ening domestic sources of exporters. growth as a policy priority In order to get away for much of the world. from the crisis in euroThe year 2012 is evaluated zone which is observed Ibrahim Kupeli as a recovering year in terms one of the most sensitive ikupeli@img.com.tr of the global economy. regions, it is suggested According to the IMF’s latest World Eco- that Europe must deal with the three key nomic Outlook, a reduction in expected issues “lack of growth, reduced competiglobal growth to 3.3 percent for this year. tiveness, and the need for greater inteEurozone is observed as the most fragile gration”. Without a growth strategy, the region across the world. As for the best banking crisis is likely to deepen and the one is shown Asian emerging economies. sovereign debt problems will worsen. Turkey’s economy, which one of the The head of IMF also advices tailoremerging economies in the recent years, made solution not a “one-size fits all soshowed very well performance in 2011. lution” in the current crisis. According to the growth figures ex- “Efforts to reduce budget deficits and plained month by month, it is predicted debt must be tailored to the situation in Turkey would grow over 8 percent for the each country.” year 2011. Another important matter is lack of conDue to having high growing potential, fidence, so that a swift action must be the growth rate of the country is expected taken to restore confidence and econombetween 4- 7 percent despite the global ic growth as well as developing a clear, crisis in 2012. simple, firewall. Europe is seen as the epicenter of the In conclusion, for the most of the world danger, but the rest of the world would hopes have pinned on 2013 in terms of be increasingly affected. For this reason, economy, because of 2012 is seen as a greater danger is that the world could be lost year in some part of the world.

THOUGHT OF THE MONTH

Humor

“There is no better way to exercise the imagination than the study of the law. No artist ever interpreted nature as freely as a lawyer interprets the truth.” -- Jean Giradoux

THINGS A CONSULTANT SHOULDN’T SAY TO A CLIENT 1. That was my first guess as well, but then I thought about it 2. You should see the hotel I’m staying at 3. Hey, I just realized that I was in junior high when you started working here 4. I like this office space. I’ll have them put me in here when you’re gone 5.My rental car is nicer than that junker you’re driving 6. Sure it’ll work; I learned it in business school 7. So what do you need me to tell you ? 8. Of course it’s right; the spreadsheet says so 9. I could just tell you the answer, but we’re committed to a six month contract 10. What are you, stupid ? THINGS YOU SHOULDN’T SAY AT A CONSULTANT INTERVIEW 1. I’m a t-shirt and jeans kinda person 2. Do you pay overtime ? 3. I hate flying 4. I’m useless without ten hours of sleep a night 5. There are lies, damn lies, and statistics 6. Are your rental cars covered for collision ? 7. College taught me working in teams is great for slackers 8. I think three letter acronyms are for people too stupid to remember whole phrases 9. Two words: family first 10. Call it what you want, it still means firing people WAYS TO TELL YOU’RE MARRIED TO A CONSULTANT 1. Referred to the first month of your relationship as a “diagnostic period” 2. Talks to the waiter about process flow when dinner arrives late 3. Takes a half-day at the office because, “Sunday is your day” 4. Congratulates your parents for successful value 5. Tries to call room-service from the bedroom 6. Ends any argument by saying, “Let’s talk about this off-line”

7. Celebrates your anniversary by conducting a performance review WAYS TO TELL YOU’VE GOT THE CONSULTING BUG 1. Can’t stop using words that don’t exist 2. Worried that he who dies with the most frequent-flyer miles wins 3. Use so many “buzz words” in conversation, friends think you’re speaking a foreign language 4. Constant urge to give advice on subjects you know nothing about 5. Always hyphenating words that-don’t-need-tobe-hyphenated 6. Compose your grocery list using bullet points 7. Can fit the thematic undercurrents of War and Peace into a two-by-two matrix 8. Tired of having a social life beyond work 9. A two-page story in Business Week is all it takes to make you an expert 10. Firmly believe that an objective viewpoint means more than any real work experience THINGS YOU’LL NEVER HEAR FROM A CONSULTANT 1. You’re right; we’re billing you way too much for this 2. Bet you I can go a week without saying “on board” or “value-added” 3. How about paying me based on the success of the project ? 4. This whole strategy is based on a Harvard business case I read about 5. Actually, the only difference is that I charge more than they do 6. I don’t know enough to speak intelligently about that 7. Implementation ? I only care about writing long reports 8. I can’t take the credit. It was George in your MIS department 9. The problem is, you have too much work for too few people 10. Everything looks OK to me, you’re doing just fine

THE ECONOMIST What is the major difference between change and progress?

Well!

Change is inevitable but progress is optional

EASY

SUDOKU

MEDIUM

ACROSS 1 Anxiety 6 Mountain Standard Time 9 Feign 12 Moses’ mountain 13 To be 14 Tricky 15 Feather 16 Yang’s partner 17 Crown 18 Brand of sandwich cookie 20 Seasoning 22 S. American llama 25 Stone 26 Wretchedness 27 One’s possessions 29 Company symbol 31 Decade 32 Fades 36 Salad need 39 Large number 40 Not as fresh 43 Sign up 45 Indian tribe’s head 46 Beehive State 47 Radiation dose 48 Ship initials 50 Finger jewelry 54 Single 55 Affirmative gesture 56 Banned 57 Danish krone (abbr.) 58 Deoxyribonucleic acid (abbr.) 59 Thin flat strips

DOWN

7 1 9 1 Viper 5 4 2 2 Nada 8 6 3 3 African antelope 4 Nation HARD 5 A third 3 7 8 6 Condiment 7 __ Lanka 2 1 9 8 Leasee 4 6 5 9 Computer characters 10 School year 5 2 4 11 Kinds 9 3 7 19 Egg holiday 21 Lack 1 8 6 22 Punching tool 8 4 1 23 Water closet 24 Dowel 6 9 3 25 Pelican-like bird 7 5 2 28 Ball holder 30 Eye FIENDISH 33 Sick 34 Cow sound 9 8 2 35 Pigpen 1 7 5 37 Repay 38 Aches 3 6 4 40 Fish 5 1 3 41 Show appreciation to 42 Helper 2 9 8 44 Vial 6 4 7 46 U.S. Department of Agriculture 49 Child 7 3 6 51 BB association 8 2 1 52 Gained 53 Distress call 4 5 9

Made in Turkey Economic Newspaper, February 2012

Turkey confident on growth contrary to IMF “We won’t allow the economy to fall into recession.”

Continued From Page 1 urkish economic growth may slow to an average of 0.4 percent this year, from 8.3 percent in 2011, according to the report prepared by IMF staff for a meeting of officials from the Group of 20 developed economies in Mexico City on Jan. 19, according to Reuters. In the fourth quarter of 2012, the economy may contract 0.2 percent, it said. The projections do not necessarily reflect the views of the IMF execu-

tive board, the report said. The economy may expand between 1 percent and 2 percent this year, IMF Deputy Managing Director Zhu Min said, according to the CNBC e-news channel. The IMF’s forecasts stress downside risk and Turkey can “comfortably” achieve the government’s goal of 4 percent growth, Turkey’s Central Bank Gov. Erdem Başçı said in an interview in Davos. ‘There might be various scenarios for Turkey, but we believe the country

will grow by 4 percent this year, says Ali Babacan. Risks were mounting particularly in Portugal, Italy and France, said Turkish Deputy Prime Minister Ali Babacan, saying economic growth could be around minus 0.3 percent in Europe in 2012, making Turkey’s search for alternative markets like Africa inevitable. “There is no doubt 2012 will be a better year for Turkey,” Babacan said at the Turkish Industry & Business Association

(TÜSİAD) general assembly in Istanbul. Babacan said the slower growth projections for Turkey still indicate the country could grow despite Europe’s ongoing economic crisis. However, he underlined the fact that recently in Portugal, Italy and France, risk perception has peaked, emphasizing that Turkish exporters have to concentrate on different markets to lessen their dependency on the debt-hit European economy. “When the economic cri-

sis first started between 2008 and 2009, it was enough for European countries to assure the markets with letters of guarantee from their governments,” said Babacan. “Even government guarantees were not enough to alleviate concerns.” Babacan said the total bond debt of the five countries hit by the economic crisis – Greece, Ireland, Italy, Portugal and Spain – currently comprised 2.1 trillion euros. Nearly 40 percent of these countries’ debts are to banks

in France and Germany, the largest economies in the eurozone. If these five countries face more problems, Germany and France’s banking sectors could be hit. “I am not hopeful the technocrats will be able to save the economy since they were never elected by their people and the public might not support their initiatives,” Babacan said. “There might be various scenarios for Turkey, but we believe the country will grow by 4 percent this year.” He also said

this projection might be subject to revision if the

economic situation in Europe deteriorates in 2012.

Government to pay for new bridge over Bosphorus ISTANBUL ransport Minister Binali Yıldırım clarifies the Plan B after a failed tender for the Northern Marmara Highway Project, which includes building the third bridge over Istanbul’s Bosphorus. The project will be financed from the national budget. The Northern Marmara Highway Project, which includes construction of a third bridge over Istan-

Transport Minister Binali Yıldırım

bul’s Bosphorus, will be developed with local resources, said Transport Minister Binali Yıldırım, adding that the ministry will go out to tender again soon. “The bridge and a 65 to 70-km-long highway will be included in the first tender. Then the remaining highways will be put to tender later on,” he said during a TV program. The mega transportation project, which spans 414

km from Adapazarı to Tekirdağ, failed to attract any bids from a total of nine Turkish and nine foreign companies Jan. 10. Just before it appeared that no bids were made Yıldırım had signaled to go with an alternate plan. “If no companies bid for the third bridge, we will launch our plan B,” Yıldırım had said. The project, described as Turkey’s second-biggest build-operate-transfer

scheme, was decided to be put to tender March 9 last year. Some bidders had asked for a three month or six month delay, said the minister. “We did not think it was reasonable and decided not to extend the time [to hold bidding],” he said, adding that “We will finance it from the national project.” The buildoperate-transfer scheme was tried, Yıldırım said. “We will put the project to tender very soon. We

plan to work with local resources. It takes a long time to get credit financing warranty in buildoperate-transfer schemes. … We are revising the project. We will do it in stages.” The project will begin in 2012, the minister said. It is not a project that only Turkey needs, but it is a transit route that will connect Europe to Caucasus, the Middle East and Far East, he said. “It will con-

tribute to inner city traffic of Istanbul, but there will not be many connections to the city center.” “A single Turkish firm will not be enough [to handle the entire project] due to its vastness,” Yıldırım said. They [Turkish firms] will form groups. Maybe even then that may not be enough. They may have to include a foreign firm as a solution partner.” When compared to İzmit Bridge, which will be the

second longest bridge in the world, the third bridge is merely half the İzmit Bridge in length, so it should not be exaggerated, he said. “Japanese companies [Mitsubishi, IHI, Obayashi and Itochu] will definitely take part in the new tender,” said Fukuda, noting that the Japanese Embassy has called Japanese companies for a meeting for Istanbul’s third bridge Project.

Made in Turkey Economic Newspaper, February 2012

Credibility cut turns up heat on European leaders

BRUSSELS ecent credibility cut by S&P to nine eurozone nations, including France, increases the pressure on leaders who have been seeking concrete solutions to the ongoing debt crisis. The cut may also trigger a hike in lending rates European leaders are under pressure to deliver a credible solution to the debt crisis after Standard & Poor’s punished their policies with stinging credit downgrades. Eurozone governments face an uphill battle as they scramble to avoid a messy debt default in Greece, boost a bailout fund considered too small to save bigger countries and seal a fiscal pact aimed at tightening budget discipline. After a relatively calm

start to the year, the crisis returned with a vengeance on Jan. 13 as negotiations between Greece and bank creditors on a huge debt writedown hit a snag and Standard and Poor’s downgraded nine eurozone nations. The credit ratings agency justified its action saying that EU policies “may be insufficient to fully address ongoing systemic stresses in the eurozone.” And with recession looming, Standard and Poor’s warned that the focus on all-out austerity could backfire against the economy. More than two years into the crisis, bailouts of Greece, Portugal and Ireland, the creation of an emergency fund and a slew of continent-wide austerity measures have once again failed to calm fears of a eu-

rozone breakup. “This is more a downgrade of the eurozone’s management of the crisis,” said Sony Kapoor, head of ReDefine economic think tank. “Standard and Poor’s had given EU leaders fair warning but they have wasted the month they have had to change course and come up with a credible crisis resolution strategy,” he said. European leaders, all except Britain, agreed to seal a “new fiscal compact” by March to tighten budget discipline and deepen integration in order to convince markets that there will be no repeat of the crisis. But Standard and Poor’s, in addition to kicking France and Austria out of the exclusive club of AAA-rated nations, warned that “a reform process based on a pillar of fiscal austerity alone risks becoming selfdefeating.” EU leaders plan to discuss how to spur growth and jobs at their January 30 summit, but the new fiscal treaty will also figure high on the agenda. After years of toothless fiscal oversight in the EU, the pact would require governments to enshrine balanced budgets in their constitutions and threaten more automatic sanctions against

countries that run excessive deficits. German Chancellor Angela Merkel, who has championed stricter budget rules, said on Jan. 14 that the downgrade means Europe must quickly implement the new treaty, “and not try again to soften it.” “The (Standard and Poor’s) decision confirms my conviction that we in Europe still have a long road ahead of us until investor confidence is again restored,” Merkel said. The ratings agency’s move has also fueled doubts about the eurozone’s ability to boost its bailout fund, the European Financial Stability Facility (EFSF). Originally endowed with guarantees totalling 440 billion euros, the EFSF only has 250 billion euros left after bailing out Portugal and Ireland -- insufficient for Italy or Spain if the eurozone’s third and fourth biggest economies need help. EU leaders agreed last year to leverage the fund to one trillion euros, but they have failed to attract much interest among private investors and foreign governments. The downgrades could hurt the EFSF. S&P warned in December that any downgrade of one of the six triple-A nations could affect

the EFSF’s own top rating. Luxembourg Prime Minister Jean-Claude Juncker, head of eurozone finance ministers, said governments would “explore the options for maintaining the EFSF’s AAA rating.” Backed by guarantees from eurozone states, the fund borrows from investors at cheap rates and then lends that money to nations that have been shut out of the private markets. A drop in the fund’s credit rating may therefore lead investors to impose higher lending rates. A new permanent fund, the European Stability Mechanism, is due to be activated in July with its own capital base of 500 billion euros. Governments are divided over whether to increase its size, with some wary of tapping on taxpayers. For analysts, the rate cut is a stark reminder that the crisis is far from over. “The downgrade does not reflect the fact that the efforts of the eurozone to escape the crisis had shown some promising positive results,” said Janis Emmanouilidis, analyst at the European Policy Centre. “At the same time, the downgrade shows that more needs to be done to manage and eventually overcome the crisis.”

High-tech investments given impetus The Turkish Ministry of Industry will be establishing a ‘domestic technology’ prerequisite for a series of upcoming significant public tenders anticipated to reach the 20 billion dollar level. Continued from Page 1

inister of Science, Industry and Technology Nihat Ergün announced plans to use the ‘off-set’ system, currently and successfully in place in the defense industry, in upcoming transportation, energy and health tenders. Noting that Turkey has significant purchasing power, Ergün states that the era of purchasing the cheapest option is over. Minister Ergün explained that from here on out they will be telling tender bidders, “We may make the purchase from you, however only if you agree to produce a number of parts in Turkey. If you work with certain firms we point out to you, then we will go ahead with the purchase.” Ergün also explained that from here on out they will be giving preference to companies that also develop in Turkey and not just produce in the country. Firms that commit to increasing indigenousness up to the 50 to 60

percentile level over the next five years will be given priority consideration at tenders held. Ergün emphasizes that with this system Turkey’s industry will acquire a production volume worth billions of dollars. Also mentioning that they will be following the domestic production pattern put in place by the FATİH project in pharmaceuticals, energy and transportation tenders as well as in Turkish Airlines aircraft purchases, Ergün goes on to state, “The ‘off-set’ system in Turkish Airlines purchases has opened the one billion dollar exports door for us. We can bring this figure up to two billion dollars. In pharmaceuticals alone we could reach a two billion dollar production potential.” Ergün also focused on the issue of manufacturing a domestic vehicle for the Turkish automotive sector by stating, “Even if we had our eyes closed, we could count 200 industrialists who could take on this task on their own.”

ister, adding that the units were purchased from General Electric. However, it may take as long as 19 months to start producing electricity due to soil improvement works, said Alp Zor, Enka Teknik’s business development coordinator. Enka has built 15 thermal plants up to now, Zor said. “The total power of the plants we have built to date, including this latest 500-megawatt plant deal, has surpassed 14,000 megawatts,” he said. Iraq plans to become self-sufficient in power by 2014 after the completion of a series of power

GENEVA conomic growth, jobs and protectionism are the top three worries at the start of 2012, according to a “Call to Action” published by 11 leaders of international organizations. The signatories, including the heads of the World Bank, International Monetary Fund (IMF) and the World Trade Organization, comprise the “Global Issues Group” of the World Economic Forum (WEF), the Geneva-based organization that runs the exclusive annual networking shindig in the Swiss ski resort of Davos. “While the global economy faces severe challenges, it can regain momentum by supporting the economic transformation underway in the emerging world by meeting the infrastructure needs around the globe and by beginning to realize the promise of a greener economy,” they said. They called for a “more comprehensive action plan” that could be agreed on at the Group of 20 summit in Mexico in June, and said countries could rebuild confidence by implementing proposed reforms and by increasing global cooperation. The three-page list of issues and proposed solutions, which the group said did not necessarily reflect the views of their organizations, is unlikely to stir much controversy. Their five-point plan for reigniting growth included restoring confidence in financial institutions, cutting deficits without cutting growth, addressing youth and long-term unemployment and using public-private partnerships to help countries finance investments without adding to deficits. The signatories were Financial Stability Board chairman Mark Carney, World Health Organization chief Margaret Chan, OECD Secretary-General Angel Gurría, WTO director-general Pascal Lamy, IMF Managing Director Christine Lagarde, World Bank chief Robert Zoellick, and the leaders of the International Labour Organization, World Food Programme, and three regional development banks.

Turkish Technology Minister Nihat Ergun

Turkey has surpassed the 2011 tourism target Ergün also qualified the halting of production of the TOFAŞ brand’s bird series as a mistake. Ergün states, “We abandoned the bird series just at the phase when new forms and new designs were being put forth. If we had stuck with that series and been able to go a step further with the form, model, design and technology and made investments, then today with a new design, these brands would have continued to have a presence in a number of

locations throughout the world as well as in the domestic market.” Ergün also disclosed the good news that in 2012 Turkey will be drawing in serious international investments. “We will not drop below ten billion dollars this year. With incentive, investments will only accelerate. There are investors coming who are interested in making investments ranging from petrochemicals to the automotive sector.”

Enka inks $236 million power deal with Iraq AGHDAD - Enka, a Turkish construction conglomerate, has signed a $236 million deal to build a natural gas plant in Iraq, a step toward making the war-ridden country self-sufficient in power generation. Enka’s subsidiary, Enka Teknik, will install a 500-megawatt power plant in Iraq’s southern province of Basra. The al-Najibiya natural-gas plant will have four gas units, each with a production capacity of 125 megawatts. The project will be finalized in 16 months, said Karim Aftan alJumaily, Iraq’s electricity min-

Growth, jobs and protectionism are worries of 2012

plants, Adel Mahdi, an electricity ministry adviser said. Firm takes Hereke brand under wings ANKARA Sümer Holding, a state-controlled group, is entitled to exclusively use the “Hereke” carpet brand name until 2022, said a top executive of the company, following recent reports saying China has built an entire industrial zone bearing this brand name, which manufactures carpets with Hereke tags. The company first received the copyrights for the brand 1982 and renewed the authorization in 1992 as the 10-year protec-

tion period came to an end, said Sezai Ensari, general manager of Sümer Holding, a state-run company active in textiles, leather, paper, fertilizer, sugar and chemicals production. The copyrights of the brand were renewed until March 10, 2022, he said. The rights to the Hereke brand were passed on to Sümerhalı on July 16, 2001, and Sümerhalı was merged with Sümer Holding in 2009, making the Hereke brand the holding’s own property. In addition to Turkey, the copyright is valid in the United States, European Union and People’s Republic of China, Ensari said.

A new record in tourism: 31,456,076

urkey has surpassed the 2011 tourism target to reach a record breaking 9.86 percent increase in numbers of visitors. Out of the 31.5 million tourists that came to Turkey, the highest number of visitors were from Germany. Istanbul alone drew in eight million tourists last year. Turkey has broken yet another record while surpassing the 2011 target of 31million visitors, with a 9.86 percent increase in tourists for the January to December period in comparison to figures from the year prior. As a result, Turkey hosted a record 31,456,076 visitors in 2011. Out of that figure, 2.11 million (6.92%) were day trippers. December alone showed a 2.47 percent increase, with 1,194,729 visitors. As for the order of nations who comprise Turkey’s tourists, tradition was not broken. Germans made up the highest number of tourists hosted in Turkey this year accounting for five million. According to figures released from the Ministry of Culture and Tourism, Germany came in first in terms of nationalities of tourists visiting Turkey with 4.83 million (15.34%), the Russian Federation follows in second with

3.47 million (11.03%), England came in third with 2.58 million (8.21%). Following England in subsequent order was Iran, Bulgaria, Holland, Georgia, France, Syria and the United States. As for the locations in Turkey which saw the highest number of arrivals, Antalya came in first at 33.27 percent, followed by Istanbul in second place at 25.61 percent and Muğla in third at 9.78 percent. Istanbul experienced a 25 percent increase in the number of tourists hosted in 2011, a figure which reached eight million tourists. The year prior, 6.9 million tourists visited Istanbul. The number of countries to send over a million tourists to Turkey has gone up to eight. In 2011, the most significant increase in numbers of tourists sent from a particular country was Bangladesh with a 181.64 percent increase. Israel suffered the highest drop in numbers of tourists to visit Turkey with a decrease by 27.76 percent in 2011. Meanwhile, the United States replaced Italy last year in becoming one of the top ten nations whose tourists came to Turkey. In 2011, over 757,000 American tourists came to Turkey.

Made in Turkey Economic Newspaper, February 2012

Mercedes dominates Istanbul fleet ISTANBUL ercedesBenz Türk, a subsidiary of Mercedes-Benz AG, has won a tender initiated byIstanbul Public Transport Authority (İETT) to purchase 221 articulated buses, according to a company statement. The Mercedes-Benz Conecto type buses, with a five-year warranty, will be delivered by September 2012. Mercedes-Benz Türk will assume all the maintenance during the warranty period. The 155-seat capacity buses will be manufactured in the com-

pany’s Hoşdere plant in Istanbul. The buses feature three 19-inch LCD monitors and eight cameras. The proportion of Mercedes brand buses in the İETT bus fleet will rise to 50 percent with this procurement. “The deal is a very positive development for the people of Istanbul as well as an important success for Mercedes-Benz Türk,” Dr. Hayri Baraçlı, İETT general manager, said. Mercedes-Benz AG owns 67 percent of the Turkish subsidiary, according to the official website of Mercedes-Benz Türk.

Soaring GCC Food Consumption an Ideal Industry Opportunity

Truck company enjoys jump in sales in Turkey

ISTANBUL olvo’s truck sales in Turkey surpasses other branches in Eastern Europe. Volvo trucks’ Turkey arm grew by 31 percent from 2010 to 2011, achieving its most impressive sales record and crowning it regional leader in truck and tow truck sales. In the commercial vehicles exceeding 16 tons segment, Volvo trucks registered

a sales figure of 1,265 trucks and tow trucks for 2011 up from 964 the year before, said Volvo Group Turkey General Manager Martin Ericsson, adding that this is the company’s highest sales record since the Swedish auto maker entered the Turkish market in 2001. This figure propelled Volvo Group Turkey into first place among its regional competitors like Romania, Ukraine, Portugal, Greece and Israel.

Turkey’s steel exports raise by 29.38 percent

urkey’s steel sector increased its exports in the first month of 2012. According to the statement of The Association of Steel Exporters, the exports of the steel sector took

share worth $15,4 billion from the overall exports of Turkey, and the sector expanded its exports 29.38 percent to $1,2 billion in January 2012 over the same month preceding year.

As for the amount the sector’s exports became 1,594 million tons with 32.74 percent. When compared to the amount in December 2011, the flat hot steel increased 34.27 percent, in pipe connection

fittings 16.78 percent, in ingot increase became 6.12 percent. As for based on the countries, Saudi Arabia ranked first in the steel exports, this country was followed by Iraq, the USA and the UAE.

Incentive scheme attracts foreign car makers

ISTANBULerman Volkswagen eyes production in Turkey and Korean Hyundai will begin producing the i10 model as the government commits to auto incentive scheme The German carmaker has been interested in investing in Turkey since 2005. German carmaker Volkswagen (VW) is considering investing in production facilities in Turkey, after the Turkish government expressed its commitment to an incentives scheme to bolster the

Turkish auto sector. Similarly, Korean carmaker Hyundai is augmenting its production capacity in the Turkish market. “Volkswagen is very interested in investing in the Turkish market and will release its preliminary investment report in March,” said Doğuş Otomotiv Executive Board Director Aclan Acar Acar pointed out that a VW production plant inTurkey would produce around 200,000 to 250,000 vehicles and that this could include more than one particular model. Doğuş Otomotiv Chair-

man Ali Bilaloğlu told that they had formed a working group with VW as well as the Prime Ministry’s Investment Agency to work out investment options. “Ever since the government’s decision to upgrade investment programs in the automotive industry, we have started working even harder. I don’t know what this report will lead to, but I can definitely say that we are seriously working on investment options,” said Bilaloğlu. He added that VW has been interested in investing in the Turkish market since as far back as 2005. Korean carmaker Hyundai has also said it will increase the production capacity of its İzmit plant to 200,000 vehicles by the end of 2013, with a 400 million euro investment. In addition to revamping its existing i20 model, it will also begin producing the smaller i10 vehicle. In 2012, Hyundai plans to

produce 84,000 new i20 vehicles and will increase this number to 120,000 in 2013. This will bring Hyundai’s total investment in the Turkish market in 15 years to $1 million. When the i10 model goes into production, Hyundai’s total investment figure will exceed $1.5 million. Meanwhile, however, Turkey’s luxury automobile market is expected to shrink by 15 percent in 2012 due to the increase in the special consumption tax, which was hiked in October 2011 from 84 percent to 130 percent for vehicles whose motors exceed 2 liters. The tax is expected to affect car prices this year. The expected 15 percent shrinkage will be the first drop in luxury car sales in the last four years. The number of luxury cars, which registered sales figures of 49,000 vehicles in 2011, is expected to drop to 42,000 in 2012.

Locally made cars grace Geneva show ISTANBUL hen the doors open to the International Geneva Auto Show on March 6, three locally produced automobile models will be on display. Ford Otosan’s new Transit model will be showcased for the first time at the auto show. Hyundai’s newly revamped i20 model will also be one of the stars of

the auto show, but by far the most talked about locally produced model on display will be Karsan’s V1 model, the prototype for the New York taxi of the future. The show will feature both a taxi model of the V1 and a passenger model. Meanwhile, Ford Otosan is preparing to build its third plant in the Kocaeli region of Turkey.

The plant, which will be situated next to the company’s current facilities in Gölcük, will have the capacity to produce 110,000 light commercial vehicles. With this new addition, Ford Otosan will have three factories in Turkey and is expected to increase its total production capacity to 445,000 vehicles. Ford Otosan’s

General Manager Nuri Otay said the new plant will only focus on small light commercial vehicle production. Construction is expected to begin this year and will be spread out over a threeyear period. The company has invested approximately $260 million in this third plant, according to Otay. The production will begin in 2013, he said.

Gulfood brings together the most influential food and beverage trade companies

he organisers of Gulfood, the world’s largest annual trade exhibition for the food and beverage industry is starting on 19 February 2012 at the Dubai International Convention and Exhibition Centre. The show, which last year attracted a record 62,000 visitors from more than 150 countries and 3,800 exhibitors, is once again on track to provide a global platform for Middle East food and beverage trade and reinforce the region’s status as one of the world’s key growth markets for the industry. According to recent research from Alpen Capital, food consumption per capita across the Gulf Co-operation Countries (GCC) looks set to rise by more than 20% over the next five years and GCC food import bills are expected to more than double from US$ 25.8 billion in 2010 to US$ 53.1 billion by 2020. “Gulfood is a dynamic industry event with a track record of bringing together the most influential food and beverage trade companies who forge new international partnerships and conduct multi-million dollar deals both during and after the show. The growing demand for food products in the GCC and across the wider Middle East makes Gulfood an essential event for those organisations and companies either looking to make inroads into the region, or expand their market share,” said Trixee Loh, Senior Vice President, Dubai World Trade Centre, the organiser of Gulfood. “Time and again, Gulfood has proved it is the only Middle East event that consistently delivers and generates vast quantities of new trade for the industry.” As well as showcasing a truly global array of quality food products and services, Gulfood 2012 is hosting the region’s most significant F&B conference, with

expert presentations, including dedicated sessions on Food Manufacturing and Processing, Leaders in Food – featuring some of the industry’s most innovative pioneers – and ‘Foodpreneur, an opportunity for ambitious entrepreneurs to find invaluable advice related to their start up business. In recognition of best food and beverage products and services, the annual Gulfood Awards will highlight the industry’s outstanding companies – both newcomers and established organisations – with a gala ceremony, celebrating their achievements and raising their profiles. The enormously popular Emirates International Salon Culinaire returns to demonstrate the energy, inspiration and passion of more than 1,300 young chefs as they compete to become stars of the future. From practical cooking competitions to buffet and banqueting show pieces, the chefs will showcase the best of Middle East culinary talent. Competitors are evaluated by a panel of 25 renowned experts, mandated by the World Association of Chefs Societies (WACS) to judge culinary events across the globe, ensuring the highest competition standards. In another competitive element to Gulfood, the Pastry & Baking Salon is the perfect platform for showcasing the talents of professional Pastry Chefs across the UAE and GCC region. The competition is open to all pastry chefs and bakers working in the UAE/GCC, to compete in static display and live baking across twelve categories. Gulfood is strictly a trade-only event and is open to business and trade visitors from within the industry only. Gulfood is open 11am – 7pm from Sunday 19 February to Tuesday 21 February and 11am – 5pm on Wednesday 22 February.

Made in Turkey Economic Newspaper, February 2012

DOMOTEX Middle East relocates to Istanbul

OMOTEX Middle East, the leading trade fair for carpets and floor coverings in the MENA Region (Middle East/North Africa), is on the move. After six successful years in Dubai, the fair will now be staged at the CNR EXPO Center in Istanbul from 2012 on. DOMOTEX Middle East 2012 runs from 8 to 11 November. “Regrettably, the Emirate of Dubai was unable to reach the ambitious goals it had set itself,” explained Martin Folkerts, Director Global Fairs at Deutsche Messe. However, the Middle East remains a highly promising market for foreign companies, thanks to its many large-scale building projects. For instance, Saudi Arabia is planning a major expansion of infrastructure services in and around the city of Mecca to cater for ever-increasing pilgrim numbers, while Qatar is erecting new office and residential buildings as well as hotels in the run-up to the 2022 FIFA World Cup, which it will be hosting. These are just two of the many ma-

jor development projects in the region. At the same time, Turkey, with its population of around 73 million, now ranks as the world’s 17th largest economy and also boasts economic growth that is well above the global average. In the second quarter of 2011, Turkey’s gross domestic product (GDP) grew by a stunning 8.8 percent year on year.

The country’s economic growth rate for 2010 as a whole was an impressive 8.9 percent growth. Economists expect the country’s rapid economic expansion to continue, especially in the building and construction sector. Forecasts predict that around 210 million square meters (2.26 billion sq. ft) of carpets and floor coverings will be laid in Turkey in 2012 alone. Folkerts: “Our exhibitors stand to benefit directly from the booming market in Turkey. And thanks to the high regard in which the DOMOTEX brand is held in the region, we expect that the fair will attract large numbers of Turkish and foreign floor covering manufacturers on the exhibitor side, and purchas-

ing executives, wholesalers, retailers, architects, planners, investors and real estate developers from Turkey, the MENA Region and Central Asia on the visitor side.” Turkey also ranks among the world’s top five exporters of hand- and machine-made carpets and textile floor coverings. Around a quarter of its exports go to Middle Eastern countries. “This highlights the special significance of Turkey in the MENA Region. Thanks to Turkey’s close ties with its neighbors, this year’s DOMOTEX Middle East in Istanbul is a gateway to major opportunities, not only in Turkey, but in the entire Middle East, North Africa and Central Asia,” said Folkerts.

Number of tourist visiting Turkey up 9.8 percent in 2011

he number of tourists who came to Turkey in 2011 has exceeded expectations with a rise of 9.8 percent over the figure in 2010, according to a statement released by the Ministry of Tourism. The figures released by the ministry show that 31,456,076 tourists visited the country in the year 2011. Germany took top-tier the number of 4,826,031 among the countries from which visitors came to Turkey. Russia followed it with 3,468,214 tourists. Britain ranked third, with 2,585,054 of its citizens vacationing in Turkey. Iran, Bulgaria, Holland, Georgia, France, Syria and the US

also ranked high in the ratio of tourists to Turkey in 2011. In December, the number of visitors rose 2.47 percent over the same month previous year and reached 1,194,729. The number of visitors of 17,489 was day-trippers. People from Germany, Bulgaria, Iran, Georgia and Syria were among the counties that sent the largest number of visitors in December. Day-trippers made up 2,112,880 of the total visitors to country in 2011. Throughout the year, 33.2 percent of visitors entered the country through the border gates in the southern province of Antalya -- a prominent vaca-

tion spot for tourists. Istanbul ranked second, receiving 25.6 percent of tourists via its border gates. Mugla placed third, accepting 9.7 percent of tourists. There was a 3.63 percent increase over 2010 – accounting for 1,140,459 individuals -- in the number of visitors from France. With the addition of France, the number of countries to send over a million tourists to Turkey each year surged to eight. The greatest boost in the number of tourists from a country was seen from Bangladesh, while the percentage of visitors from Israel suffered the greatest decline in 2011.

Sanliurfa cotton workshop

onukoglu said that the textile industry keeps its importance for many years in

Turkey. Konukoglu expressed satisfaction to declare problems and proposed solutions for the cultivation of cotton in Sanliurfa, that is, the agricultural base of the GAP at the workshop in which Faruk Celik, Labour and Social Security Minister, Celaletin Guvenc, Sanliurfa Governor, and Ahmet Esref Fakibaba, Mayor attended. At the workshop, which was organized by the coordination of the Governorate of Sanliurfa, Konukoglu said, “As always, I want to start my conversation recalling that both alive and dead need textile.” He added futher, “When we were born, we were covered a diaper, and when we die, we were covered a cerecloth. We can not live without clothes. Textile is a part of our life like air, water, food and sleep. Here it is, we mention about white golden, raw material of textile, cotton.” Textile history Recalling that England was dominant in textiles for many years Konukoglu said, “English fabrics were very quality, even they were sup-

posed as the most beautiful gift. After England, French was effective for many years especially in fashion and design. Pointing out that first England, then France lost the leadership in textile industry Konukoglu criticized, “That is why, they lost their colonies producing cotton. England and France left the textile to Italy because they were countries not producing cotton.” Informing that Italy began to operate in the sector with subcontract work, and then it developed fashion and design, Konukoglu said, “Turkey has been active roler in the textile industry for about 20 years. Turkey will continue to exist in the textile industry for many years. With significant advantages, Turkey is a cotton producer country also it developed fashion, brand and design. Turkey is close to the European Union countries, the most important market. Being a labor-intensive sector, textile is indispensable for Turkey. That’s why; the textile sector is locomotive for employment and exports. Everyone in textile industry had the fear of the Chinese in the 2000s. I

never felt that. That’s why I knew our advantages, and I trusted us. At the time, I thought that if each Chinese wears one more shirt and needs one more underwear, China would become an importer of textiles. And so it happened. Time justified me.” China to be textile importer Stressing that as Sanko they raised textile exports to China $ 36 million in 2011 which were $ 18 million in 2010, Konukoglu said, “This increase was due to Chineese income rise and consequently consumption habits change. But such an important value for Turkey, the textile sector has problems in terms of raw materials. To be supposed of cotton as strategic product is very important for cotton cultivation and future of the sector. 450 thousand tons the cotton production in Turkey in 2010-2011 is expected to rise to 750 thousand tons in the period 2011-2012. I believe that Turkey will become more important in the textile sector with the increasing cotton production. Premiums to support should be preannounced a year so that producers and industrialists can decide better for the future by taking into account 2-year price movements of Futures exchanges in the United States.” Stating that they use machine harvesting, attach importance to seed improvement programs and improve pre-cleaning cotton ginnery factories, Konukoglu said, “the quality of cotton needs to be improved, the only pick-up system and licensed warehousing application should be used.” Recording that when no support for cotton, everybody would be forced to use synthetic products, Konukoglu said that irrigated farming should be generalized in GAP region but farmers avoid to use surface irrigation which leads salinization and decreases the productivity by using drip irrigation, etc. Ziya Guclu from Guclu Dokuma Tekstil ve Sanayi, Dr Osman Copur from Harran University, Unal Evcim from National Cotton Council of Turkey, Mehmet Comert from Ministry of Economy, Umit Bayram Kutlu from the Ministry of Food, Agriculture and Animal Husbandry, and Sait Melik, Farmers Federation President, discussed the cotton issue at the workshop.

Made in Turkey Economic Newspaper, February 2012

Samsung to shift some production to Turkey General Mobile wins Turkey’s tablet tender S ISTANBUL eneral Mobile has won the PC tablet tender for Turkey’s massive information technology project called Fatih to be launched in schools nationwide, bringing high technology “smart classrooms” to the country. The company won the tender by offering 599 Turkish Liras tablet PCs for nearly 15 million students, said Muzaffer Gölcü, general manager of General Mobile Turkey, at a press conference Jan. 20. Samsung was unsuccessful in its bid for the project. “We will follow the tender requirements and fine tune our manufacturing capacity accordingly,” he added. The company will start manufacturing the 8.9 inch tablet PCs this year. “We will deliver around 4,000 tablets this month and another 30,000 tablet PCs next month, both of which are part of the pilot phase,” Gölcü said. General Mobile will launch the pilot project of training both students and teachers on information technology, as well as identifying the needs of classrooms, with a team of 100 people visiting schools across the country. “We will develop new software and applications according to the needs of the students and teachers,” he said, adding that teachers would be able to monitor students as the software system would enable students to download material with teacher approval. “Tablet PCs will be easily connected to the Internet in the classrooms and update all the information needed,” he said. If the project goes beyond General Mobile’s production capacity, Gölcü revealed that it might partner with other firms, but he’s confident General Mobile will be able to supply the necessary number of tablets with no difficulty. “We are already working on increasing our production capacity to meet the demand,” he said. “With this project Turkey will become a technology hub in the region,” said Sebahattin Yaman, board chairman of Gençel Technology, at the meeting. Vestel signed an agreement Jan. 9 with the Transportation Ministry for the production of 84,921 smart boards for a fee of approximately 339.6 million liras.

ISTANBUL outh Korea’s electronics firm Samsung plans to make a greenfield investment for the manufacture of some of its products in Turkey, said a top executive of the company’s local unit. Recently, Samsung lost the tender to provide 8.9inch tablet PCs in Turkish schools to General Mobile. “We are planning to make some investments in

Turkey to shift manufacturing of some of our products,” Samsung Turkey’s General Manager Sung Yong-hong told on the sidelines of a press meeting in Istanbul. The local unit of the company and the headquarters are currently having talks about greenfield investment in Turkey, he said, adding that the Turkish market was important for the company’s future plans “We are still interested in manufacturing 10-inch e-tablet computers for Turkish students and we will participate in the next tender,” said Sung. Turkey’s state tender named “Fatih Project” also includes 10-inch e-tablet for students and teachers, according to official’s previous statements. “We know that some of the Turkish officials’ re-

quirements are that we manufacture the tablet computers in Turkey and this is why we are considering investing in the country,” Hong said. Along with Samsung, Lenova is expected to bid for the next tender for the manufacture of 10-inch tablets. Both firms await announcement of the tender expected next month. “We are ready to adhere to Turkish government requirements and meet the demand for tablet computers,” he added. “We are currently both in touch with Turkish government officials and our headquarters,” he said, adding that the company has already launched some feasibility studies for investing in Turkey. “So far, we are satisfied with the research,” Hong said.

Tourism Minister calls for boutique enterprises “

Continued From Page 1 must confess that we are lagging behind in this area,” he said, adding that one such project was underway in eastern Anatolia in the regions of Kars and Çoruh. The minister also highlighted environmental protection concerns and stressed that more Turkish hotels were poised to receive the ministry’s “green star”

I Tourism Minister Ertuğrul Günay

this year. The Green Star certificate, introduced in 2009, is given to eco-friendly hotels based on environmentally conscious practices. Turkey already has 325 “Blue Flag” beaches, the third largest number in Europe, Günay said. About 31 million foreigners visited Turkey in 2011, bringing in total revenue of nearly $25 million, the minister said, adding that

more than 10 million tourists went to Antalya as part of mass tourism. “I think this year [2011] we have come close to $25 billion of revenue,” he said. “If you add side factors, the figure rises to about $30 billion. This is not a figure that can be underestimated, but we do not see tourism as simply a way to [enlarge] economic size. It is also a tool for social development.”

Made in Turkey Economic Newspaper, February 2012

Turkey starts campaign for local delights

NKARA - Baklava is just one traditional item that is disputed

between Turkey and Greece. The Turkish Patent Institute (TPE), which has up to now

won geographical indication rights for 147 local products from the European Union, is instituting a campaign to prevent Bulgaria and Greece from registering brand names for Turkish products, according to officials. The TPE is ready to support the trade chambers and the non-governmental organizations that demand to register their local goods, Habip Asan, head of the patent body told. The disputed goods over which Turkey and its neighbors claim geographical indication rights include traditional desserts such as baklava and lokum, as well as the döner kebab, sucuk, tripe and trotter soups

and rakı, the aniseed-based alcoholic drink. BothTurkey and Greece also claim rights on Hacivat and Karagöz, the shadow puppet characters. “The TPE has managed to register 147 goods up to now, and we are currently evaluating applications for 160 more,” Asan said. The European Commission makes the final decision on such applications after an approval by the local patent body. The commission is currently considering the rights for Antep Baklava, the dessert famous in the southeastern Turkish province of Gaziantep, and Aydın figs from the Aegean coast, Asan said.

FRUIT LOGISTICA 2012, this year’s theme: “Sourcing 2020”

long with a complete market overview of products and services from across the fresh produce value chain, FRUIT LOGISTICA 2012 (8-10 Feb.) includes a first-class conference programme. It offers representatives from the international fresh produce trade in-depth information in a series of seminars and panel discussions focusing on current market issues, problems and industry trends. The 31st Fresh Produce Forum taking place at the ICC Berlin on the day before the trade fair opens (7 Feb.) will be kicking off the world’s leading fresh produce industry event. This year’s theme: “Sourcing 2020”. Six Hall Forums will be presented in Hall 26 during the three days of the trade fair. The topics of the lecture series organised by Fruchthandel Magazine (Düsseldorf) include: Optimising urban retail logistics (8.2.), How to handle crisis management (8.2.), The global citrus mar-

FRUIT LOGISTICA Berlin is being held on 8-10 February 2012 Turkish fruit and vegetable producers participate in the fair ket (9.2.) The new banana business (9.2), Regional sourcing on an international scale (10.2.) and Innovation in the fresh produce business (10.2.). The Andalusian Minister of Agriculture Clara Aguilera and Dr Robert Schaller from the Federal Ministry of Food, Agriculture and Consumer Protection have confirmed their participation at the Hall Forum “How to handle crisis management“. Outstanding achievements in the fresh produce trade will be honoured with the following industry awards : “FRUCHTHANDEL MAGAZINE Retail Award 2012” (7.2.) and the FRUIT LOGISTICA INNOVATION AWARD 2012 “FLIA” (10.2.). Sourcing 2020

The sourcing of high quality fresh produce will become a whole new challenge over the next decade. The food retail sector is making an effort to become more involved in the procurement process in order to ensure long-term supply, optimise costs and gain more influence on the products and specifications. In the face of a rapidly-growing world population, global production will be reorganised to some extent. At the same time, the role of conventional fruit suppliers is changing and they will need to once again demonstrate their expertise as providers. The focus of discussion will be on the following issues: • What effect will direct sourcing by the retail sector have? • How should producer or-

MADO set to expand in Far East countries KAHRAMANMARAŞ ADO plans to open its first branch in Kuala Lumpur Malaysia. MADO, Turkey’s premier ice cream and cafe chain, is branching out to the Far East, opening a store in Kuala Lumpur, Malaysia. The company plans to open a total of 12 branches in the region this year and as much as 154 concept stores over the next five years. “Indonesia, Malaysia, Hong Kong, Thailand, South Korea and Singapore are our new markets. We had made an agreement with this region last year but had not begun exporting. Now the game has begun,” said Mehmet Kanbur, Board President of MADO. He outlined that MADO planned to open cafes serving Turkish food and desserts, not just ice cream. The next market on MADO’s list is China. “It’s a huge world over there, with an immense population and demand. It is going to be a very different market for us,” added Kanbur, who also stressed that MADO is in talks with many different countries, even the U.S. Established in 1850 by Yaşar Kanbur, MADO became a chain in 1991. It has more than 240 restaurants and cafes in Turkey.

ganisations and fruit trading companies position themselves? • What impact will demographic trends and the expansion of economically powerful markets in Russia, the Middle East and Asia have on sourcing and trade flows? International experts from the research, production, wholesale and retail sectors will analyse the situation and take a look into the future: • Cindy van Rijswick, Industry Analyst Fruit, Vegetables and Floriculture, Rabobank International, Netherlands • Bernd Schröder, tegut, Germany • Dietmar Bahler, BayWa, Germany • Andrew Sharp, Fresca Group, UK • Andreas Allenspach, van Rijn Group, Netherlands The Fruchthandel Magazine Retail

Award 2012 will be presented by Fruchthandel Magazine in conjunction with this year’s Fresh Produce Forum. One of the special features of this award is that consumers get to choose the most popular fruit and vegetable department in the German food retail sector. On behalf of Fruchthandel Magazine, consumer researchers at GfK Nürnberg surveyed 7,500 households across Germany to find their opinions about fruit and vegetable departments in the German retail sector. What opinion could be more significant than that of consumers, the target audience for all quality and marketing efforts? Following the award ceremony, Helmut Hübsch from the GfK will talk about the survey results – and

offer interesting insight into the consumer mindset. Turkey joins the fair Mustafa Satici, Chairman of the Board of Antalya Exporters’ Union, would participate widely in Fruit Logistica Fair in Berlin. “No doubt Turkey is one of the foremost countries of the world fresh vegetable and fruit produces. We are participating in the fair by the national level to gain opportunities on behalf of our country,” Satici said. Stating that they would participate in the fair in the area of fresh fruits, vegetables, citrus fruits, organic fruit-vegetables and packaging sector, Mustafa Satici recorded, Turkey would be a partner country first time at Fruit Logistica Fair.

Made in Turkey Economic Newspaper, February 2012

Industrial production increases 3.7 percent in December Industrial production rose 3.7 percent in December 2011, as for year on year average increase in the industrial production hit by 8.9 percent

ndustrial production index in December 2011 increased 3.7 percent compared to the same month in previous year, according to the announcement of Turkish Statistic Institute (TurkStat).

In the sub sectors of industry, mining and quarrying index increased by 6.7 percent, manufacturing index increased by 2,7 percent, electricity, gas, steam and air conditioning supply index increased by 10.3 percent

in December 2011 compared to the same month of the previous year. Calendar adjusted production index in December 2011 increased by 3.8 percent compared to the same month of previous

year and seasonal and calendar adjusted industrial production index increased by 2.7 percent compared to previous month. The highest increase was seen in the goods manufacturing with 13.5 percent. This followed

by durable consumption goods manufacturing with 11.2 percent and then energy rose 6.1 percent, as for intermediate goods 0.9 percent in December 2011 over the same month of 2010. In this month, manufacturing

of non-durable goods decreased 1.5 percent. In the sub-sectors, the first stop was taken by the manufacturing of the other transport vehicles with 140.3 percent. This was followed by wooden manufac-

turing excluding furniture with 17.8 percent, and then basic pharmaceutics products with 16.9 percent. The most decrease was in the tobacco products. In the beverages 14.9 percent plunge happened.

Tourists like lodging with homeowners

NKARA Mount Nemrut in southeastern Turkey is a popular tourist attraction. A growing number of tourists visiting Turkey in 2011 chose to stay either with friends or relatives, according to data released by the

Turkish Statistical Institute (TÜİK), which analyzed the growing trend among foreign tourists to purchase property in Turkey. Of the foreign tourists, 11.1 percent preferred to stay in their own homes in Turkey and 22.7 stayed with relatives or friends,

meaning that one out of every three visitors to Turkey preferred staying in homes rather than hotels. Roughly 50 percent stayed in hotels and the remaining 4.6 percent stayed in rental accommodations. Furthermore, one out of every 10 tourists was a

retiree, according to the TÜİK findings. The data also found that most tourists came to Turkey for travel, entertainment, sports and cultural activities. About 57 percent came for travel, entertainment, sports and cultural activities while 10.6 percent came

to visit friends and relatives, 6.3 percent came for work and 3.4 percent came for shopping. In total, there were 30.4 million tourists to Turkey in 2011. About 27 million of these were foreigners, the remainder being Turks who lived abroad.

Eximbank to expand loans to Tunisia and Libya Continued From Page 15 e was accompanied by Tunisian Minister of Trade and Industry Mohamed Lamine Chakhari. Caglayan said the loan is designed to support reconstruction work in the country. “Companies from Tunisia will have the opportunity to receive loans

for a repayment term of up to 10 years for their purchase of machinery from Turkey,” he noted. Caglayan implied that Eximbank would increase the dimension of the loan if there is demand. Caglayan was welcomed by his Libyan counterpart, Ahmed Kouchi in Tripoli. Participating in the Tur-

Economy Minister Zafer Caglayan

key-Libya Business Forum in the capital city, Caglayan said Libya would be offered $250 million in loans from Eximbank to help speed up their reconstruction efforts. Underlining that Turkish contractors have gained significant experience with hundreds of projects around the world in the past two decades, Caglayan recorded Libya and Tunisia would do the best to benefit from this experience. “The African market is one of the markets in which Turkish construction firms are most active,” he noted. Turkish construction firms achieved 6,500 construction projects in 93 countries since the foundation of the modern republic in 1923, and the total volume of these projects reached

worth $207 billion. The minister suggested that the Housing Development Administration of Turkey (TOKI) could also share its experience with the two countries to this end. Kouchi said they attached great importance to private investment and to protecting the rights of foreign companies. “We need the experience of foreign entrepreneurs in infrastructure and superstructure projects in Libya,” he added. Turkish construction companies have projects in Libya totaling $23 billion, $15 billion of which are still ongoing, with some projects suspended following last year’s unrest in the country.

Turkish banks take place on top 500 bank brands

ommenting on this year’s report, David Haigh, CEO of Brand Finance, said: “The past 12 months have proved to be a very turbulent period for banking brands. We have seen a collective decline in brand value amongst the 500 banks in our report of $94.78bn. Despite this, the total value of the top 500 banking brands was US$746.7 billion. The size of this number – which is equivalent to the GDP of Turkey – underlines the importance of brand value to the global financial sector.” Turkey’s Akbank was ranked number 96 out of the world’s 500 most bank brand value, according to a study released by Brand Finance, which compares and ranks global brands. In addition to Akbank, seven other Turkish banks were included in the list, averaging a total brand value of approximately

$7.97 billion, according to the study. However, the Brand Finance report also indicated that while Turkey’s banks were exhibiting strong economic performance, Turkish bank brand labels were on the decline. In fact, according to Brand Finance, these eight Turkish banks in 2011 witnessed a 19 percent decline in their brand value. First published in 2006, the Brand Finance Bank-

ing 500 in association with The Banker was the first publicly available study analysing the financial value of the world’s top banking brands. It is published annually and incorporates data from all listed companies globally. Each brand is accorded a brand rating: a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set as well as a brand value: a summary measure of

the financial strength of the brand. The report analyses the market values of brands as intangible financial assets that drive demand and build business relationships. Brand Finance uses the Royalty Relief method to analyse the royalties that a corporation would have to pay to license its brand if it did not own it, thus establishing the cost from which a bank is relieved through owning its brand.

IMIB HAS ORGANIZED THE “SURPLUS TO PLUS” SEMINAR FOR NATURAL STONES

iming to gather young architects, interior designers and designers with sector representatives and to introduce them to Turkish natural stones, Istanbul Mineral Exporters’ Association (IMIB) realizes “Different Visions in Creative Industries” project in cooperation with Mimar Sinan Fine Arts University and with the support of Istanbul Development Agency. The third phase of the project that started in October was the “Surplus to Plus Seminar” organized in Foreign Trade Complex hosted by IMIB on the 27th of January. During the seminar, students were taught to use natural stone surpluses in their designs and projects. Accordingly, the importance of recycling and the contribution of creative industries to the economy were explained. Making the opening speech of the seminar, IMIB Chairman Mehmet Ozer said, “Many people may not know but today Turkish natural stones have been used and continue to be used in several famous hotel and building projects including the White House and Kaaba. We have to declare this strength and this significant value of our country to everyone and endeavor to use Turkish natural stones in many more projects. This can only be achieved through awareness raising activities and education”. Stating that they realized “Different Visions in Creative Industries” project in cooperation with Mimar Sinan Fine Arts University and Istanbul Development Agency with this purpose, Ozer told that they aim to inform young architects, interior designers and design-

ers about the sector make them to act with an innovative and creative vision knowing the market needs in their professional business lives. During the ‘Surplus to plus” seminar under the scope of the “Different Visions in Creative Industries” project; IMIB Board Member Erdogan Akbulak made a presentation named “Natural Stone Cycle and Recycling”. Focusing especially on surpluses during block cutting activities in quarries and cutting, selection and tile sizing activities in factories, Akbulak explained that these surpluses can be used in several different areas. Emphasizing that processing surplus products significantly contributes to employment and can be considered as an aesthetical, functional and environmental practice, Akbulak stated that reducing surpluses is as important as recycling surpluses. Akbulak said that natural stone surpluses can be used in gravestones, borders in pavements, paving stones in walking areas and roads, floor coverings, wall coatings, gardens, landscaping in ornamental pools, various object designs and artistic works. Akbulak explained the techniques used for these usage areas where surpluses can be recycled and gave recycling examples. During the seminar; Mimar Sinan Fine Arts University Faculty of Architecture Department Head of Interior Design Asst. Prof. Dr. Saadet Aytis, Metin Balibey from Tramertas A.S., Prof. Dr. Faruk Calapkulu from Egejeo Limited Company, Prof. Dr. Flamur Doli from Priština University and Prof. Dr. Nuran Ye-

nel from Mimar Sinan Fine Arts University made presentations on the history and future of natural stones, natural stone designs and natural stone in architecture and recycling natural stone surpluses in architectural projects. The art exhibition of Prof. Dr. Flamur Doli, who is a Lecturer in Priština University, was a colorful event on using natural stones in architecture. You may find detailed information about the project on www.dogaltaslatasarliyorum.com or call IMIB from 0212 454 08 72. About the Different Visions in Creative Industries Project: Under the scope of this one-year project; students in architecture, interior design and industrial design departments; people in this profession and natural stone sector representatives are targeted in general. More specifically speaking, the project covers 30 students in the departments of architecture, interior design and industrial design in Mimar Sinan Fine Arts University. During this one-year project, various events such as seminars, symposiums, quarry and factory visits, theoretical education and workshops will be organized for these 30 students. A design competition, where all the students from related departments in universities will participate, will be realized at the end of the project. With this project, it is aimed to raise awareness in students about Turkish natural stones, to encourage them to use natural stones in their future projects and to increase competitive advantage of Istanbul by gathering different industries.

Made in Turkey Economic Newspaper, February 2012

Water filling into the highest dam of Turkey in February W

hen completed Deriner Dam which is the highest dam of Turkey will meet 6 percent of Turkey’s electric generation need.

According to the statement from the Ministry of Forest and Water Works, countdown in Deriner Dam, which will be the highest dam of Turkey and third one of the world

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Crossword Puzzle Solved

with 249 meters height, has started. Following Muratlı and Borcka Dams, in Deriner Dam which will be the third necklace of the River Coruh, electric generation to launch in the year 2012. The cost of the dam accounts for approximately $1,4 billion, the project’s construction began in 1998, since 2003 every year the needed allocation provided to complete the giant dam. The installed capacity of the dam is 670 megawatt. The dam is scheduled to generate 2 billion 118 million kilowatts energy per annum. In the statement also said, “When considered that in our country per capita electric consumption is 2 thousand 870 kilowatts, the electric generation which will be gained from Deriner Dam and Hydroelectric power plant, will meet the need of 750 thousand people per annum. In other words, this means the dam features to meet one of cities’ electric needs of Mardin, Trabzon, Eskisehir or Malatya provinces per annum.” MEDIUM

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Turkey’s exports expand by 10 % in January Turkish exports marked a 10 percent increase in January 2012 over the same month of the previous year Continued From Page 1 he Turkish Exporters’ Assembly (TIM) announced the results of their foreign trade report for the month of January. Sharing the details with reporters in the northwestern province of Bursa, TIM President TIM President Mehmet Buyukeksi Mehmet Buyukeksi recorded Turkey exported industrial goods worth $8.7 billion, making up 83 percent of overall exports in January. As for the sub-groups in the industry, automotive contributed the highest amount with $1,6 billion in January 2012. Chemical goods ranked second with $1,3 billion and steel took at the third line with $1,25 billion in the first four weeks of 2012. Turkey’s exporters achieved $135 billion worth of exports in 2011, the peak level ever. While diversification is experienced in Turkey’s exports markets, meanwhile the EU’s share in Turkish exports dropped below 50 percent from around 60 percent. TIM Chairman Buyukeksi noted that agriculture’s share in January’s exports became 14.4 percent with $1.52 billion. The share of mining in January’s exports was 2.6 percent with this sector selling goods worth $276 million overseas. The sector that enjoyed the highest increase in exports in January was precious stones, with a 223 percent rise. Tobacco products and carpets exports followed with 33 and 32 percent increases in exports in January. “TIM added two new sectors to its foreign trade report in January, defense and air conditioning systems, Buyukeksi said. Air conditioning systems products were up 7 percent more in January over the same month of 2011, as for the defense exports surged by 19.6 percent in the same period.

IMF: Restoring confidence crucial to rebuilding world recovery

IMF Managing Director Christine Lagarde

Continued From Page 1 o big “it won’t need to be used” In addition, the IMF’s resources should be built up to help protect other countries around the world. The aim, she said, is to build up a big enough contingency fund that will help restore confidence and therefore it won’t have to be used. Lagarde is trying to ramp up the IMF’s resources by up to $500 billion so it can help if more lending is needed in Europe or elsewhere. She stressed that the money is not just to support Europe, but “any country that is a member of the IMF,” particularly in central and eastern Europe, and poorer developing countries. Quoting British wartime leader Winston Churchill, she said “We have the tool[s], we must do the job.” Tailor made She clarified that there was not a “one-size fits all solution” in the current crisis. Efforts to reduce budget deficits and debt must be

tailored to the situation in each country as consolidating too quickly could strangle growth. “We are not suggesting that there should be fiscal consolidation across the board, without differentiation and without specific treatment adjusted to the specificities of the country,” Lagarde noted. In the context of discussing the IMF’s broader position on fiscal policy, she set out three main country groupings—those with no choice but to adjust debt levels and spending now, those with room for flexibility, and those who have the option to stimulate growth further, and thereby help other economics. The IMF has said that the euro zone countries are expected to fall into a mild recession this year. Overall, activity in the advanced economies is now projected to expand by just 1.2 percent in 2012—a downward revision of ¾ percentage points relative to the forecast last September. Lagarde said that in addition to

Europe, the United States and Japan needed to adjust their large deficits, while major emerging markets should work to develop domestic consumption. Panelists included Ali Babacan, Turkey’s Deputy Prime Minister for Economic and Financial Affairs, Mark J. Carney, Governor of the Bank of Canada, Japan’s Economy Minister Motohisa Furukawa, George Osborne, Chancellor of the Exchequer of the United Kingdom, Donald Tsang, Chief Executive of Hong Kong Special Administrative Region, and World Bank President Robert B. Zoellick. Decisive action a must for confidence Osborne said the world should give the euro zone credit for all that it has achieved in the past two years, in terms of reducing budget deficits, creating the European Financial Stability Facility and introducing structural reforms. But there was much more to do. “The fact that we’re still, at the start of 2012, talking about Greece again is a sign that this problem has not been dealt with,” Osborne said. “The danger here is that the tail wags the dog throughout this crisis … the inability to deal with the specific problems in the periphery causes shockwaves across the whole European economy and the world economy,” he told the crowded audience. All panelists agreed that restoring confidence was critical for shoring up the system. “You need decisive action. You need overkill,” said Tsang, the chief executive of Hong Kong. “Confidence must come from decisive actions from governments.” Worrying outlook In his introduction, Wolf said that

the mood in Davos was akin to the relief of a condemned man reprieved from hanging. “Instead of feeling the imminent prospect of catastrophe, there is a sense that things have been done that have eliminated very substantially the immediate risk of disaster, particularly in Europe.” But Tsang said much more needed to be done. In 40 years as a public servant, Tsang said he had “never been as scared as now about the world, what is happening in Europe.” The world was much more interconnected than ever and contagion spreads very fast. Swift action must be taken to restore confidence and economic growth. Governments must also act to help the poor through the crisis and to reinforce social safety nets. Concerned about high unemployment around the world, Lagarde stressed that growth will be critical in large part to generate jobs. Four year’s into the crisis, Zoellick said that “people are scared, there’s anxiety, there’s joblessness.” Concern about unemployment “is part of the bigger issue that some of us have been trying to draw out, which is that it’s not enough to muddle through,” he added. There should be concerted efforts to undertake structural reforms that reduce impediments to growth, and specific measures to support skills and employment. Tsang left the audience with an impassioned reminder of the importance of people inadvertently caught up in the crisis. “While we’re dealing with all these macro issues,” Tsang said, “remember you have to deal with the people. This is where we serve. This is what public service is all about.”

Central bank expects inflation to show downward tendency urkey’s central bank on said they expected the country’s inflation rates to decline through the following few months, stressing that the upward pressure on prices that has emerged from a weaker Turkish lira will be temporary. The bank said that the foreign currency movements’ retarded repercussion continues on the basic goods prices, as for the services’ prices kept their mild navigation. According to the date of Turkish Statistics Institute (TurkStat), the yearly inflation of consumer prices jumped to 10.61 percent in January, reaching the highest level since November 2008. The bank released their monthly price developments report, analyzing the January inflation indices. Citing its commitment to price stability, the bank stated in the report that January saw the adverse impacts of a depreciating TL and indicated this is not expected to continue for a long time. The bank has set its inflation target to remain around 5 percent in 2012, in line with the government’s Mediumterm Economic Program (OVP). The currency developments have a profound impact on central bank maneuvers. In a report following last week’s January inflation figures, the bank said it would consider a revision of the monetary policy if a possible deterioration in fiscal balance threatens the medium-term inflation outlook. Also pointing out a volatile global market ambiance, the bank said, “Current circumstances require a flexible approach in monetary policy.” The bank’s report early February also highlighted that the price raise in the services sector “remained limited” in January. They attributed a 0.94 percent price climb in services to fast-increasing transportation costs. Highlighting this were the surging crude costs, it said. The bank also remarked to an upward pressure in durable goods prices. The highest growth in durable products prices over the previous month was of furniture at 3.27 percent and automobiles at 1.82 percent.

Made in Turkey Economic Newspaper, February 2012

How long can apparent stability in oil prices last?

Continued From Page 15 t the same time, the Deputy Executive Director stressed that there is uncertainty surrounding the ability of non-OPEC supply to rebound “from the awful year it suffered in 2011.” Ambassador Jones noted, however, that the IEA and many of its analytical peers believe non-OPEC supply can rebound, continuing the trend of reinvigorated growth that was seen in 2009 and 2010. What about Iran? The recently announced US sanctions on entities having financial dealing with Iran, and the upcoming EU embargo on oil imports from Iran, will clearly affect the mix

of crude oil supply available on a regional basis, Ambassador Jones acknowledged. Iran exports around 2.5 mb/d of crude oil, with 65% of this going to Asia, and some 30% into Europe, he explained. A significant portion of the 1.3 mb/d of Iranian crude oil imported by IEA member countries is likely to be affected by these measures, but the full impact of the sanctions and embargo have yet to be fully assessed. “Ultimately, [the IEA] thinks refiners denied the ability to import Iranian oil will most likely find the extra barrels they need, albeit they may need to pay higher prices than might otherwise have been the case,” he said. In addition, Ambassador Jones observed that

Minister of Finance Mehmet Simsek

there is a widespread expectation that Iran will try to retain or increase sales to nonOECD buyers, potentially making extra spot sales into Asia at discounted prices. The Deputy Executive Director added that of greatest concern for the oil market is the threat by Iran to impede traffic through the Strait of Hormuz (17 mb/d, equivalent to some 20% of global oil supplies) if an embargo is applied, as well as its threat to retaliate against neighbouring producers if they try to boost exports. “[However,] to a degree, such threats have already been priced into the market, while the likelihood of a prolonged stoppage for Hormuz transits is seen as being fairly low,”

Continued From Page 1 “In Turkey, there are great opportunities first being in agriculture, tourism, energy, health and then in many sectors, as for the Gulf has financial source, these conditions constitute an excellent combination,” Simsek said. Attending the plenary meeting of the 1st Business Forum of Turkey-Gulf Cooperation Council entitled “Recovering the Investment Condition and Facilitating Trade: Basic Dimensions of Economic Development “, Minister Simsek said that among the developing countries Turkey is one of eight very quick growing potential, as well as young population of Turkey and the reforms that made in recent years allowed its growing potential active. Simsek also stated that the Gulf countries which export oil, they also feature to export capital. “Having comprehensive budget and current account surpluses these countries would make up surplus worth $5 trillion in the next 10 years,” Simsek said. Simsek marked that the sum of this surplus, which is not used, should be exported, Simsek said when the investments made in the USA, Europe and Japan

would return revenue under the inflation regarding issuing money openly. “In this period, it is necessary to invest the sources into the real assets in a way of cooperation or purchasing companies. The countries in the Gulf and Turkey characterize to complement each other, regarding competitive areas are limited, for this reason having free trade agreements conclude as soon as possible time to be beneficial for both Turkey and the region,” Simsek recorded. Simsek said that there was a strong top level political will, but it was necessary to let free trade agreement into force as soon as possible time. Minister Simsek also recorded that even Turkey depends on abroad in energy, but in all sectors Turkey is represented in a powerful way. He added that Turkish economy offers outstanding opportunities in terms of investments, projects and consumption. “This cooperation is not only necessary to restrict by the Gulf. Actually, the companies come together to set up partnerships of course can achieve very remarkable opportunities in the Mideast, Balkans, Turkey, Africa and Europe,” Minister Simsek said.

n light of sanctions proposed by the US against Iranian crude oil exports, Turkey is working on a plan to avert difficulties on the matter. A working group has been formed to analyze the situation ahead of FM’s crucial visit to Washington Turkey is working on a plan to avert the political and economic difficulties it could face as a result of the Washington-proposed sanctions against Iranian crude oil exports, which make up nearly one third of the country’s daily consumption. Though Turkish officials voiced their intention to seek exemption from sanctions, (as they would only abide by U.N. Security Council resolutions), the government is weighing various ways to gradually reduce Iranian oil imports, including by using Saudi Arabia and Russia as potential alternative suppliers. The United States imposed a fresh round of sanctions against

financial institutions dealing with the Iranian Central Bank late December, aimed at hampering Iran’s crude oil exports to international markets. The U.S. is threatening to impose sanctions on the financial institutions of other countries if they “engage in a financial transaction for the sale or purchase of petroleum or petroleum products to or from Iran after 180 days of the enactment of the law,” signed by President Barack Obama on Dec. 31, 2011. In official remarks, Turkey has openly said it would only implement sanctions if they were imposed by the U.N. Security Council but also added it would consider seeking an exemption from measures against Iran given its unique position. However, despite whether Turkey abides, the law will have a direct effect on Turkish financial institutions as a result of the country’s nearly 9 million tons of crude oil pur-

Government set to sell out stake in Petkim

NKARA - Turkey has set a 4 p.m. deadline on March 20 for final bids to buy the state’s 10.3 percent stake in local chemicals producer Petkim Petrokimya Holding, according to an announcement in the Official Gazette. According to the tender specifications, bids will be received by closed envelope, and bidders will be required to provide a $3 million temporary down payment. In addition, bidders will have to pay $15,000 for the tender specifications and information document. Private investment funds can only participate as part of a joint venture. The State Oil Company of Azerbaijan (Socar) has announced that it will bid for the 10 percent stake.

Turkey’s gold extraction reaches by 24.4 tons in 2011

he total amount of gold extracted from the ground in Turkey raised by 43 percent to 24.4 tons in 2011 over the preceding year. According to this result a steady raise is seen in the amount of gold extracted since 2001, it was 1.4 tons. The annual figure became 11 tons in 2008, 14.5 tons in 2009 and 17 tons in 2010. As for the total amount of gold extracted from the ground hit 106.5 tons since 2001. According to the statement, the total of six firms is active in gold mining in Turkey, where gold extraction started in 2001. The western province of Usak in the Aegean region has featured the local “gold rush” center. A total of 8.8 tons were extracted in Usak Kisladag Gold Mine in 2011 out of a total 24.425 tons overall. A total of 5.8 tons of gold ore came from Copler Gold Mine in the eastern province of Erzincan,

while Mastra Gold Mine in Gumushane, a province in northern Turkey, put out 5.1 tons. Another 3.9 tons of gold ore was mined in Bergama Ovacik Gold Mine in the western province of Izmir. In 2011, the total gold pile of 24.425 tons account for worth nearly $1.365 billion with current prices. Imports at 150 tons Turkey’s annual gold demand shows a change between 150 and 250 tons, while the annual average of gold imports stands at 151 tons, said Umit Akdur, the chairman of Gold Miners Association, adding that 2,573 tons of gold were imported in the past 17 years. Turkey has paid a total of $8 billion per year for gold imports with current prices, said Akdur, noting that this was a substantial figure. Akdur claimed some circles that do not want this trade to dry up have been continuing with their

routes to greater supply security. But, if the mere availability of IEA strategic stocks helps calm otherwise jittery market nerves in 2012, so much the better.”

Ankara looks for no Iranian oil options

Minister Simsek: Cooperation of Turkey-Gulf, an excellent combination

he added. IEA stands ready Ambassador Jones concluded that at present there is no physical oil supply disruption underway, but added that the IEA remains vigilant and ready to act if a major disruption occurs. “Emergency oil stocks, as their name suggests, are for use only when the market’s ability to efficiently reallocate supplies in a crisis is compromised,” he said. “Ongoing investment in new productive capacity, especially in diverse areas likely to be less susceptible to geopolitical risks, and a progressive improvement in energy and oil use efficiency provide longer term

attempts to hamper gold extraction in Turkey. Stating that Turkey tops the countries which have a significant gold mine potential in the world, he said, “Only 10 percent of Turkey’s 6,500 tons of gold mine potential has been brought out yet. The re-

maining 90 percent is waiting to be discovered. In order to do that $10 to $12 billion must be spent.” Gold demand in Turkey is steadily on the rise and the boost in gold prices is steering Turkish banks toward gold-backed accounts, he said.

chases from Iran. The country’s sole refiner, Tüpraş, renewed the deal to buy the same amount of oil from Iran in 2012, but it is

reported that it was planning to meet Saudi Arabian oil authorities this month in order to secure an alternative supply.

European Stability Mechanism treaty signed

he new treaty to make a European Stability Mechanism (ESM) was signed on 2 February by the eurozone countries’ ambassadors in Brussels. Herman Van Rompuy, President of the European Council, welcomed the signing of the treaty, saying that this permanent crisis mechanism would contribute to raising confidence and ensuring solidarity and financial stability in the euro area. The ESM will be a Luxembourg-based international financial institution, which will support euro area countries where indispensable to safeguard financial stability. It is scheduled to become operational in July 2012. The treaty was originally signed in July 2011 but has now been modified to make the ESM more effective. All eurozone member states will become members of the ESM. Non-eurozone member states may also participate in stability support operations. Financial assistance instruments The ESM will have a wide range of tools available. It will be able to grant loans to its members, provide precautionary financial assistance, purchase bonds of beneficiary member states on primary and secondary markets and provide loans for recapitalisation of financial institutions. Decisions to grant stability support are taken by mutual agreement. However, in situations in which failure to urgently adopt a decision to provide assistance would jeopardise the economic or financial sustainability of the eurozone, decisions may be taken by a qualified majority of 85% of the votes cast. Transition from the European Financial Stability Facility (EFSF) Transitional arrangements between the EFSF (the temporary mechanism currently in place) and the ESM will ensure uninterrupted financing of ongoing programmes as needed. The adequacy of the ESM’s maximum lending volume will be reviewed regularly. The current joint EFSF/ESM lending capacity ceiling, 500 billion euros, will be reassessed by the heads of state or government on 1 March. Synergy with the fiscal compact The ESM treaty and the new treaty on stability, coordination and governance in the Economic and Monetary Union (TSCG), also known as the fiscal compact, are “both elements in the strategy to overcome the public debt crisis in the eurozone,” stressed Herman Van Rompuy. From March 2013, any granting of financial assistance under the ESM will be conditional on ratification of the TSCG treaty; and from one year after the entry into force of the TSCG treaty, also on the implementation of a balanced budget rule. The ESM treaty has to be ratified by the eurozone member states. It is expected to enter into force in July 2012, a year earlier than originally planned.

Turkish companies acquire in foreign markets Continued From Page 15 urriyet’s acquisition of Trader Media East, Anadolu Efes’s purchase of SABMiller in Russia and Ukraine and Eczacıbasi’s acquisition of Villeroy&Boch’s tiles are marked the other outstanding purchasing by the Turkish companies. According to the report of Delliotte, Turkish firms are mostly interested in acquiring a 100 percent or majority share in overseas companies. Some firms wish to invest along with the local partners familiar with the market. The report also said the most important factors for Turkish firms to consider gaining access to new brands and labels to get competitive advantage. Turkish firms have interested in the food and beverage, service, telecommunication, logistics, production and financial services sectors.

Made in Turkey Economic Newspaper, February 2012

Banking profits shrink 10 percent

Fitch takes rating actions on six Eurozone sovereigns A

Continued From Page 1 ll the ratings have been removed from RWN, with the Negative Outlook on all six countries indicating a slightly greater than 50% chance of a downgrade over a two-year time horizon. The eurozone ‘AAA’ country ceiling has been affirmed for all six sovereigns. All senior unsecured issues of the six countries are affirmed in line with the new rating levels above. The ratings of guaranteed issuance by National Asset Management Ltd. are affirmed at ‘BBB+’ and ‘F2’ in line with the Irish IDRs. As outlined in its rating review press release of 16 December 2011, Fitch has now considered both systemic and country-specific factors for these six sovereigns. As a result, the agency has reduced the score it assigns to capture financing flexibility in its assessment of the credit profiles of eurozone sovereigns that have large fiscal financing needs and significant financial/economic imbalances. Moreover, rising “home bias” in the allocation of capital, the divergence in monetary and credit conditions across the eurozone, and near-term economic outlook highlight the greater vulnerability to monetary as well as financing shocks faced by these sovereign governments. Consequently, these sovereigns do not, in Fitch’s view, accrue the full benefits of the euro’s reserve currency status. The net impact of this revision under Fitch’s sovereign rating methodology is to lower the long-term ratings of the affected sovereigns by one notch. This one-notch revision was applied to Belgium, Italy, Slovenia and Spain, but not to Cyprus

and Ireland, where their loss of market access had already been demonstrated by their need for official/bilateral support and is already reflected in their low investment-grade ratings. The downgrade for Cyprus, and the additional one-notch cuts for Italy, Spain and Slovenia (ie a total of two notches for each) reflect country-specific concerns primarily related to the banking sector in Cyprus and Slovenia; an adverse shift in the interestrate growth differential and hence public debt dynamics in Italy; and a significantly worsened fiscal and economic outlook in Spain. A more detailed rating rationale can be found in six separate country specific press releases also being pub-

the substantive policy initiatives at the national level to address macro-financial and fiscal imbalances, and the initial success of the ECB’s three-year Long-Term Refinancing Operation in easing near-term sovereign and bank funding pressures. Nonetheless, the intensification of the eurozone crisis in the latter half of last year undermined the effectiveness of ECB monetary policy and highlighted the financing risks faced by eurozone sovereign governments in the absence of a credible financial firewall against contagion and self-fulfilling liquidity crises. Fitch recognises the significant commitments made at the 9-10 December and previous EU Summits to enhance economic

lished shortly. Overall, the rating actions balance the marked deterioration in the economic outlook with both

policy coordination so as to prevent a recurrence of the severe macro-financial imbalances that arose in the euro’s first decade,

as well as efforts to create a longterm framework for fiscal stability over the medium to long term. Fitch also anticipates that European leaders will make good on these commitments in the forthcoming 30 January summit. In addition, the decision to bring forward the creation of the European Stability Mechanism and increase the resources of the IMF, if implemented effectively, is a step towards enhancing the capacity of the eurozone to absorb adverse shocks, such as a disorderly Greek default, although such a shock is not the agency’s expectation. In Fitch’s opinion, the eurozone crisis will only be resolved as and when there is broad economic recovery. It is evident that further substantial reforms of the governance of the eurozone will be required to secure economic and financial stability, including greater fiscal integration. As previously noted, in the absence of greater clarity on the ultimate structure of a fundamentally reformed eurozone, the gradualist approach adopted by politicians to systemic reform will continue to be punctuated by episodes of severe financial volatility, entailing a significant economic and financial cost that erodes sovereign creditworthiness. It also means that a ‘breakup’ of the eurozone cannot be wholly discounted, although in Fitch’s opinion the risk of such an outcome remains small. Fitch will continue to adopt a balanced and incremental approach to the rating of eurozone sovereign governments in recognition of the unprecedented nature of the systemic crisis and heightened uncertainty over the economic outlook for the region.

he head of Turkish Banking Regulation and Supervision Agency (BDDK), Tevfik Bilgin announced that Turkey’s banking sector profits were down to 19,847 billion Turkish Liras in 2011 accounting for 10.3 percent plunge year-on-year. The sector’s assets jumped by 1,218 trillion liras with a 21 percent rise yearon-year in 2011. In the first half of 2011 the sector grew by 13.8 percent, but the speed slowed down in the second half regarding the new regulations, increasing loan costs, widening of the interest corridor and decreasing funding via repo auctions as part of monetary tightening policy carried out by the Central Bank. Increases in the amount of consumption loans in annual basis also slowed in the second half of 2011. The increase rate in consumption loans rose by 50.6 percent in June 2011 in annual basis. But the loan growth rate for 2011 fell to 38.6 percent as the Central Bank hiked reserve ratios last June for the consumption loans. The total amount of loans in 2011 reached by 682.9 billion liras as of December, increasing 29.9 percent over the same period previous year. The official year-end loan growth target was 25 percent. Bilgin pointed out the basic point must become cautiously optimistic in 2012. “Even though a time when we have utmost self confidence, we should keep our prudently stance. In 2012 the basic point in the expectations we must act cautiously optimistic. As the agency, our sensitivity for either downward movements in SYR or importance which we give to liquid-

ity and our approach to asset quality will continue on the same way. As agency our decision making tradition and flexibility either overall or based on the bank have become the most crucial factor of the long term stability and it will continue too,” Bilgin said. A need can happen for a rating company in Basel II process Bilgin said they would announce the roadmap in Basel II process, of which works continue, in a short time. In the process some initiatives and rights are exist that every country can determine by itself. Every kind of initiative which is in favor of country and banks will be used up to the end point, Bilgin said. Bilgin also pointed out the importance of rating of the real sector which banks will lend. In a period when the current rating establishments are inquired this much; in the upcoming period one of the issues is to possess the national rating agency which has many examples in many countries. The real sector companies, which will be lent, must be rated in terms of the credibility. The Turkish banking industry employed 195,292 people and has 10,518 branches as of December 2011. Banks opened 11 branches abroad in 2011.

Colloidal Silver water, natural antibiotic

Ömür Dış Tic. Ltd. Şti offers wonderful natural solutions for the health sector. Lastly, offering “Colloidal Silver Water” antibiotic products of SıvaDerm, for the service of health sector, Ömür Dış Tic. lets immunity system strengthen with this product which features as a natural antibiotic. We conducted an interview with Kürşat Binici, General Manager of Ömür Foreign Trade, about “Kolloidal” having developed as an antibiotic against risk of disease in the cold winter season. “We offer our products, which are prepared by the untouched methods with a fastidious and continuously test and measurements, to the service of our customers. 118-KONF: Layout 1 2/2/12 1:30 PM Page 88 is effective against bacteria. it has been also observed that silver ions stimulate bone growth and kill bacteria during renovation in arms and legs, spinal cord. Q- You said that there is no side effect… A- Any side effect of colloidal silver water has not been observed to date. Besides, there is also no toxic effect. But there are silver generators which are sold in the market. The silver water, which is produced by these generators, has an utmost dangerous effect. Because guarantee for ppm is not given. The persons who use 200-300 ppm silver water continuously every day for 3-6 months to catch argyreia disease. We produce as standard 25ppm at our own laboratory. We make lower production suitable to the people’s weights under 16 years old. Q- How Colloidal silver water affects

virus and bacteria? A- Silver water does not suppress virus and bacteria like synthetic antibiotics, removes them directly. For this reason, virus and bacteria cannot show any resistance and immunity against silver water. Colloidal silver which is available next to a virus and bacteria prevents oxygen metabolism of these microorganisms’ work. Microorganism which causes illness within a few minutes dies by suffocation and thrown from body through immunity system. Opposite of the chemical enzymes which kill beneficial enzymes, colloidal silver kills only

single-celled micro organisms without harming beneficial enzymes. I would like to highlight this that especially it can be used to sterilize hospital and laboratories in order to prevent possible infections. Thanks to being stabile its life is long, when applied on surfaces as long as does not touch with different chemicals it is an excellent disinfectant protecting its effectiveness at least for 6 months. It does not permit virus and bacteria to approach to its existing place. Q- You tell that colloidal silver water is used for animals and crops in addition to human beings. How is its use in human and crops? A – Silver water is a reliable product

for multi-celled lives. Now colloidal silver water can be used in a safe way. Killing parasites and microbes in a short time also it is used to prevent foot and mouth disease and in poultry to prevent infectious diseases. Silver water is used to remove mold, mildew and bacteria which harm to crops by mixing with irrigation water. These methods are not yet wide spread in our country. But they are carried out successfully in both Europe and the USA. So gardens and farms are purified from the chemical pesticides. Especially, silver water is very crucial in the organic agriculture; both the soil gets richness and also healthier produces are gained. Q- Lastly, would you tell us about your company’s vision and mission? A- The feasibility of the products, which we have undertaken their marketing and sales, have been made in a sensitive way. Letting them to be beneficial for human beings is the first principle. In terms of the trade it has

been left to the latest matter. In today’s trade, due to only profit margin is thought, the poor quality rate and number of dissatisfied customer increases with every passing day. We do not find ethical to lose the quality of acquires which you obtain through various difficulties - by the poor quality products. We, as the team of Ömür Foreign Trade, dignify to your efforts since 1984. In order to raise your quality of life, we take pleasure greatly to let the best product reach you with the most suitable price. We wish to sign on lots of beauties with the virtues of honesty and truth. Silver water does not suppress virus and bacteria like synthetic antibiotics, it directly eradicates.

Made in Turkey Economic Newspaper, February 2012

AA: “Targets to rank in first 5 news agencies of the world”

Turkish Airlines in talks to acquire Polish carrier Hamdi Topçu, Chairman of Turkish Airlines

STANBUL - Turkish Airlines is set to start acquisition talks with Polish LOT Airlines following Warsaw’s promises to pr ivatize the air car rier, which

posted a $17 million loss in 2010. ‘Many airlines have proposed partnerships with us. We have decided on LOT Airlines,’ says Hamdi Topçu, the chair-

man of the flagship carrier Poland’s LOT, operates a fleet of 36 planes which fly to 55 different destinations across the world including North America and the Middle East. It is difficult to buy out an airline that belongs to a state, but Polish officials are willing to privatize the firm despite some resistance among the Polish public, Topçu said. “Many airlines have proposed partnerships with us. We have decided on LOT Airlines after analyzing [the offers]. The official negotiations will start as soon as possible,” he said. “Turkish Airlines has grown three to four times more than the world aver-

age for the aviation industry. [Turkish Airlines] has both made investments and main-

tained profitability. Some 13-14 airlines firms have made an offer, saying, ‘Acquire us.’” Such offers were made during intergovernmental talks, said Topçu, adding that THY’s decision was based on a “win-win” approach. The Polish economy minister said in December 2011 that LOT would be privatized and that he had wanted Turkish Airlines to acquire it, Topçu said. For the first time, a European airline will take Turkish Airlines as a model if the acquisition is finalized, he added. The news comes after Turkish Airlines agreed to a partnership with Ukraine’s AeroSvit Airlines that will provide mut u-

al flights bet w e e n Istanbul and several Ukrainian cities, un-

derscoring THY’s growing interest in Eastern Europe. The flagship carrier has also begun a new strategy in the Balkans in a bid to gain a share of the flight market between the United States and Southeastern Europe. The airline will fly from the U.S. to the Balkans via Istanbul starting this summer, Mehmet Başpınar, Turkish Airlines’ deputy marketing chairman, said Jan. 20. Turkish Airlines owns 49 percent of the Bosnia-Herzegovina Airlines. The carrier is also interested in acquiring Serbia’s JAT and other airlines’ in the Balkans, Turkish Airlines General

Manager Temel Kotil said , according to local news media.

Total public investment rose by 9.7 percent in the third quarter compared to the previous one, said the report. Private investments in the sector also jumped by 11.6 percent. According to the report, the number of houses sold in the third quarter slowed down by 5.18 percent compared to the second quarter. However, this still marked 21.57 percent growth compared to the same period of 2010, the report said. “The slowdown in domestic demand for housing mainly stems from the rising cost of the bank’s credits and the rising concern over the recession in the European economies,” the association said. Prices of construction materials in Turkey also rose by 5 percent in the third quarter last year, according to the report. The total volume of the construction contracts Turkish firms are running rose to $15 billion in the first nine months of last year. Turkmenistan topped the list with a 17.7 percent share followed by Russia with 17.4 percent, Iraq with 14.6 percent, according to the report.

Turkish companies acquire shares in foreign markets urkish firms achieved numerous acquisitions abroad over the past five

years choosing to purchase the majority shares in the companies that they have sought, accord-

ing to a Deloitte report. The report stated, Turkish firms acquired 68 foreign transactions totaling $7.5 billion in revenues in the past five years. In 2011, Turkish firms accomplished $2,9 billion worth of trading in 26 transactions. The report highlights Yıldız Holdings’ purchasing of Godiva Chocolates as Turkey’s most remarkable overseas acquisition. Page 13

“ O u r purpose i s to grow both Turkish Airlines and the airlines that Turkish Airlines will partner with,” Topçu said.

Deputy Prime Minister Bulent Arinc

Turkish Deputy Prime Minister Bulent Arinc, “We aim to let Anadolu Agency (AA) rise in the first 5 news agency across the world”

urkish Deputy Prime Minister Bulent Arinc inaugurated Anadolu Agency’s (AA) renewed Conference Hall. Bulent Arinc and AA Director General Kemal Ozturk cut the ribbon of the Conference Hall in a ceremony held at the AA headquarters in capital city of Ankara. Speaking at the inauguration of the Conference Hall, Arinc said that the AA was a deep rooted and historical institution. I congratulate Director General Ozturk for the renovation of the Conference Hall. I hope that the new Conference Hall would benefit the AA and our media, Arinc added. Following opening ceremony of the “News Academy” of the Anadolu Agency (AA), Arinc delivered the first lesson. Speaking at the opening ceremony, Arinc said that they try to make the AA known globally by the centenary celebration of its establishment in 2020. We witness today a crucial activity of the AA. The “News Academy” will train the students and help them become successful journalists, Arinc said. Since the AA Director General Kemal Ozturk came to his post, there have been good developments at the AA, Arinc noted. He added that no doubt the agency is a veteran organization.

Every new step and effort and seeking a new vision are crucial for our mission, Arinc underlined. “Every innovation, every progress, new vision seeking are very important in my opinion. You will see that Anadolu Agency will make the biggest progress in the scope of our 100th anniversary vision. The agency will achieve our targeted point in the centenary anniversary. We aim to rank in the first 5 news agency across the world. In a near future, we would like to serve news in the 11 languages together with Arabic and Bosnian language,” Arinc said. Wherever I went as a politician, I always found the Anadolu Agency as a loyal and trustable friend, Arinc noted. I realize that there is no rule saying that the graduates of communications faculties would be employed in the media. The private sector and all fields in life need communication, Arinc underlined. I believe that we need to cooperate more with the communication faculties, Arinc recorded. Turkey’s deputy prime minister Arinc also said the government was working on how to adapt internet media to the Press Law. Bulent Arinc concluded efforts were under way regarding the Press Law.

How long can apparent stability in oil prices last?

Construction sector grows 10.6 percent NKARA - Higher costs in house loans are pushing the demand down, a report says. Turkey’s construction sector grew by 10.6 percent in the third quarter of last year, reaching a total volume of 15 billion Turkish Liras, according to data of the leading construction association of the country released. One of the strongest engines of the country’s economy, the construction sector growth in the second quarter of last year was nearly 13.4 percent, according to the Turkish Constructors Association’s (TCA) report titled “World-Turkey Construction Sector in the shadow of global crisis.” The heat of the aggressive growth weakened by 2.8 percent in the third quarter compared to the previous quarter, the report said. According to the association, one of the main reasons for the slowdown in growth of the sector stemmed from the construction sector’s need for depleting the housing stock before starting up newly contracted projects in 2012.

Turkish Airlines carried 32.6 million passengers in 2011, according to Anatolia news agency data. LOT was founded in 1929 and currently operates a fleet of 36 planes. LOT flies to 55 different destinations including Chicago, New York, Toronto in North America, as well as flight points in Europe and the Middle East. LOT is a member of Star Alliance, a global airline network consisting of 27 firms, including Turkish Airlines. The Polish government owns 68 percent of the air carrier. The airline registered a loss of $17 million in 2010, leading the government to adopt a course of action to privatize the lossmaking firm.

h e relative stability in oil

prices may be fragile, the IEA’s Deputy Executive Director has warned, with much depending on whether economic malaise or supply-side problems predominate in 2012.

A m ba ssador Richard Jones was addressing the US Senate Committee of Energy and Natural Resources in Washington DC. He briefed the Committee on oil market de-

velopments in 2011 and the IEA’s

outlook for the oil market in the year ahead, stressing that those hoping for a calm oil market in 2012 may be disappointed. Impact of high prices on economy Since last spring, the high level of USD100-120 per barrel of oil has become relatively established, with prices oscillating within that range. Before this period, prices had risen from a low point of below USD40 per barrel in February 2009 to a high of around USD120. “Oil prices at elevated levels pose significant

problems for import-dependent countries,” Ambassador Jones said in his testimony on 31 January. “In this regard, [the IEA] estimates that the proportion of total world GDP dedicated to oil expenditures was back up above 5% for 2011, as it was during the economic slump of 2008 and during several previous periods of severe economic downturn. High oil prices may or may not have caused these episodes of economic difficulty, but they certainly did not help.” Demand growth in 2012 Looking ahead to 2012, Ambassador Jones ex-

plained that the IEA’s ‘base case’ view envisages global oil demand growth of just over 1 million barrels per day (mb/d). The IEA believes that non-OPEC oil supply and OPEC gas liquids (which are not subject to OPEC’s production management system) will rebound by as much as 1.6 mb/d combined, leaving OPEC producers an opportunity to trim their collective crude supply by around half a million barrels per day to 30 mb/d, while still maintaining inventory levels to roughly where they are now. Page 13

‘Free trade’ no longer sells: US trade chief Kirk

S trade chief Ron Kirk admitted it was impossible to sell free trade to Americans in the current economic climate as the WTO’s Pascal Lamy put paid to hopes of a rapid global deal. “Frankly, more and more Americans of all persuasions believe that we have swapped jobs for cheaper T-shirts and iPads,” Kirk told the Davos meeting of financial and political elite. “Wherever you are in the world, just showing up and saying ‘trade is good’ doesn’t sell in public in most places. “You have to demonstrate how your trade policy is sustaining economic growth with a direct line, not a dotted line, to jobs.” As if to vindicate Kirk’s prognosis, Australian Trade Minister Craig Emerson, who arrived late for the debate on world commerce, told the forum that he was delayed by protestors. “Occupy World Economic Forum is not yet fully con-

vinced of the benefits of free trade,” he said. Amid the unpopularity of free trade, the World Trade Organization’s director-general Pascal Lamy admitted that “the big deal will not be there,” referring to the long-awaited Doha global free trade deal. Talks for the accord have stalled a decade after they were launched in the Qatari capital as rich nations and emerging economies fail to bridge gaps over the level of cuts to industrial goods tariffs and farm subsidies. “The big deal will not be there, because the big deal

WTO General Director Pascal Lamy

imply that this question ... which is ‘what’s the right balance of obligation between developed and emerging countries?’,” said Lamy. “They can’t find this because they don’t have the necessary political energy to compromise.” Instead, more countries would focus their energies on sealing smaller agreements, said Kirk. “You’re going to see more and more countries turn to bilateral and regional engagements because of the difficulties of finding a consensus among 153 countries,” said Kirk.

Economy Minister Zafer Caglayan

Eximbank to expand loans to Tunisia, Libya

urkey’s state-owned export loan bank, Eximbank will provide loans totaling $750 million to Tunisia and Libya related with efforts to support reconstruction works in these two war-torn countries, Turkish Economy Minister Zafer Caglayan told reporters in Tripoli. Accompanied by a group of 160 Turkish businesspeople, Caglayan paid a two-day visit to North Africa, his first destination being Tunisia. Having discussed ongoing trade developments and the course of future relations with Tunisian officials, Caglayan announced at the Turkey-Tunisia Business Forum in the capital city of Tunis that Turkish Eximbank would enlarge $500 million in loans to entrepreneurs in Tunisia. Page 11