Page 9 - TURKRptFeb21

The solution imposed by the finance industry to the shrinking real economy is, as always, pat: governments are to fuel fiscal expenditures.
The virus package discussions will drive the financial markets, at least across the beginning of 2021.
When will the lira crash again? a-) February
b-) May
c-) August
d-) November e-) 2022
Earthquake, drought or black swan?
2.3 Markets
On January 14, Rifat Hisarciklioglu, head of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), issued a written statement to criticise the country’s high interest rates.
Turkish corporate loan rates recently rose to over 20%.
Cheap loan addicts. The government-run banks are still holding cheap loan campaigns for small merchants but it looks like that is not enough for Turkey’s cheap loan addict business folk.
Hisarciklioglu is a passionate Erdoganist, while the TOBB is the business group most influential with Erdogan.
Although the Erdogan administration’s market-friendly U-turn took place in early November, the monetary tightening process under way in Turkey actually began in July.
Hisarciklioglu’s statement amounts to the first public reaction to the tightening and the agitation of the TOBB might become even plainer if it hosts Erdogan at an event or two in coming days.
Erdogan is also “against” hiked interest rates. Some time might once more be bought by demonising the banks, but the discord among the business bosses will only grow from here.
A sharp U-turn in interest rate policy on the instruction of the Ankara palace would be no surprise in coming months.
9 TURKEY Country Report February 2021 www.intellinews.com