Interview: Zafer Çağlayan What prompted the government to establish a new foreign investment incentive framework, and how quickly do you expect this to begin delivering results? ZAFERÇAĞLAYAN:The 2012 investment programme, which renewed and enhanced many of the incentives that were set forth in 2009, was established for three reasons. First, the programme will support our national…
Interview: Nicole Bricq The market share of French companies in Turkey has decreased in recent years. What can be done to counter this trend and increase involvement? NICOLE BRICQ: That is not entirely accurate. Admittedly, our market share has eroded slightly, but it actually saw an upswing in 2012 when Turkey was our fourth-biggest non-EU trading partner behind the US, China and Russia. Sales…
Interview: Hakan Ates,Süleyman Aslan In what way did reduced economic growth in 2012 affect the balance sheets and the quality of assets held by domestic banks? ATEŞ: First, prudent risk management has allowed local banks to keep non-performing loan (NPL) ratios at low levels. Although Turkey’s economic growth rate dropped markedly from 2011 to 2012, NPLs only rose from 2.7% to 3%. The…
Interview: M Rifat Hisarcıklıoğlu What can be done to attract more foreign direct investment (FDI) into capital projects and productive sectors of the economy? M RIFATHİSARCIKLIOĞLU: The business climate in Turkey has become more conducive to investment since the successful implementation of the structural adjustment programme. I believe that Turkey, as one of the fastest growing countries…
Interview: Ahmet Aksu How would you evaluate Turkey’s experience with privatisation over the last three decades? What key lessons has the government learned? AHMET AKSU: Turkey was among the first countries in the world to attempt a large-scale privatisation programme. Yet, the process, which began in 1984, was held back by an unsophisticated domestic legal environment that created uncertainty…
Interview: Erde M Basci What is the ideal growth rate for Turkey’s economy, and how can the CBRT help achieve this rate? ERDE M BAŞÇI: There are three factors that determine a country’s growth potential: price stability, financial stability and productivity. Any weakness in these three areas may cause considerable damage to growth. The real costs of inflation are well known and economists estimate…
Interview: Ali Sabanci How can Turkey develop a culture and a legal system that encourages entrepreneurship while reducing the cost of business failure? ALI SABANCI: Entrepreneurs require a healthy ecosystem which includes the proper market conditions and regulatory framework, as well access to low-interest finance and a supportive culture. Regulations that pertain to taxation, auditing standards…
Interview: Mehmet Bostan What factors have contributed to the low domestic savings rate in Turkey, and how might this rate be increased by the new pension law? MEHMET BOSTAN: As has been widely documented, the savings rate in Turkey has remained low despite steady income growth in the middle class. The rate has actually dropped in recent years, from 24% in 1998 to 14% in 2010. There are many reasons…
Inyerview: Rövnag Abdullayev What steps should Turkey take to ensure energy security over the long term? ROVNAG ABDULLAYEV: It is well known that Turkey faces immense energy challenges. Over the last decade the country experienced the second-highest increase in domestic energy demand in the world, following only China. At the same time, Turkey has become severely dependent on fossil fuel imports…
Interview: Ibrahim Turhan What impact is Turkey’s credit rating upgrade likely to have on investment activity on the BIST over the short to medium term? IBRAHIM TURHAN: Many analysts have deemed Turkey an investment grade country for several years, especially since 2010. Since that year, the lira has been one of the least volatile emerging markets currencies and real interest rates have fallen…
