Made in Turkey September 17

Monthly Economic Newspaper
September 2017
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Turkey to expand capacity to meet energy
needs with 3 nuclear power plants
“Before the end of this year, we will
lay the ground for the construction
of the Akkuyu Nuclear Power Plant.
The efficiency of nuclear energy
exceeds 90 percent,” Albayrak said
President Erdoğan urges Turkish
business world to boost domestic
investments
We will work harder.
It is time to make
investments. Never
delay doing business.
Do not lose your spirit
of entrepreneurship
and investment.”
Automotive
exports rise 41
pct to $2.4B in July
Turkey’s İhlas signs
strategic partnership
with Chinese company as part
of project to revive Silk Road
İhlas has become a partner of China’s groundbreaking
“One Belt One Road” initiative to
revive the ancient Silk Road. The company,
which signed a strategic partnership with one
of leading Chinese firms, the China Silk Road
Group, will establish an joint company and
will take an active role in the coordination of
future projects. Having signed a remarkable
agreement, İhlas Real Estate Development
will aim to bring together Turkish companies
seeking to fund projects with Chinese companies.
P7
Energy and Natural Resources
Minister Berat Albayrak delivered
an extensive elaboration of Turkey’s
national energy strategy, featuring
the plan for the nuclear power plants set
to be launched, drilling operations in the
Mediterranean, solar and wind power plants,
and the utilization of coal with clean technologies
in a live broadcast on the Turkish TV
P2
Tourist arrivals in
Turkey jump 43.1
percent in June
channel Bloomberg HT. Emphasizing the
importance of nuclear power for the national
energy supply, Minister Albayrak recalled his
meeting with university professors on nuclear
power plants. Stating that the operational
nuclear power plants will be greatly beneficial
for the energy needs of the industry, the
minister said that Turkey will be more active
in the realization of nuclear projects. P5
P4
Turkish President Recep Tayyip Erdoğan
called on Turkish business people, urging
them to increase their investments
saying, “Now, it is time to invest.”
In an address to the Turkish business world at
the ordinary General Assembly of the Independent
Industrialists’ and Businessmen’s Association
(MÜSİAD), President Erdoğan said, “I want
to call on all businessmen, especially members
of MÜSİAD: If we value our country, if we love
our country, if we want to pay our debt to these
lands, it is time to act now.”
Addressing businesspeople across the country,
Erdoğan stated that business professionals
and investors must take action now to further
develop the country economically. “We will work
harder. It is time to make investments. Never
delay doing business. P3
Ties between Russia, Turkey
‘promising’, says new envoy
“In the meantime, it requires a serious effort
to bring them [relations] to a higher level,”
Yerkhov told Ankara representatives
of various media groups, including Anadolu
Agency Editor-in-Chief Metin Mutanoglu,
who met the diplomat at the Russian
Embassy in the Turkish capital. The newly
appointed ambassador, previously the head
of the Russian Foreign Ministry’s Crisis
Management Center, replaces Andrey Karlov,
who was assassinated at an art exhibition
in Ankara on Dec. 19 last year. Karlov
had been delivering a speech at the opening
of an art gallery when a gunman shot him
several times. Turkish-Russian relations
were tested after Karlov’s assassination.
However, Russian leader Vladimir Putin
described the shooting as a “provocation”
designed to undermine ties with Turkey. P7
Current
relations
between Moscow
and Ankara are
“promising”, Russia’s
new ambassador to
Turkey, Alexei Yerkhov,
has told Turkish
media.
Foreign companies
eager to fi nance
Turkey’s megaprojects
P7
Alexei Yerkhov
Russia’s new ambassador
As global halal tourism
grows, Turkey eyes
bigger share
In a report, “A Strategic Vision for Turkish Tourism:
Halal Tourism,” prepared by the Independent Industrialists’
and Businessmen’s Association (MÜSİAD) Antalya
Branch, the current situation of Turkish tourism
was assessed, data related to the world halal tourism
market was shared and suggestions to develop halal
tourism were presented. According to the report, the
tourism sector, which started to develop after the 1950s
all over the world, continues to grow globally every
year, with the number of international travelers rising
to 1.2 billion people last year from 25 million in 1950. P3
Turkey’s industrial
production sees year-onyear
increase in June
Turkey’s industrial production advanced 3.4 percent
in June 2017 compared to the same month last year,
the Turkish Statistical Institute (TÜİK) announced.
Turkey’s industrial output is deemed a vital indicator
for the economy as it is seen as a preliminary gauge
for GDP growth. On an annual basis, the manufacturing
index saw the biggest rise in June, up 3.8 percent,
among all three main sub-indices, TÜİK said. In the
same period, the electricity, .P4
Go to barter
before bank P4
Turkey, Qatar cooperates
for cybersecurity
Turkey’s state-run Scientific and Technological
Research Council (TÜBİTAK) and
the Qatar National Research Fund (QNRF)
have signed a deal for scientific and technological
cooperation. The agreement’s first
stage involves cybersecurity as the two allies
face increasing online threats. TÜBİTAK’s
chairman, professor Arif Ergin, told Anadolu
Agency (AA) that they would support
projects for the protection of energy grids. P3
Turkish wind
power project P5
Antalya eyes over
10 million tourists
in 2017 P8
Turkish banking sector remains
structurally stable
Turkish banking sector is regulated
and monitored more favorable
than emerging economies,
but it is still reliant on short-term
external debt, according to global
rating agency Standard and Poor’s.
“Our assessment of [banking]
industry risk in Turkey, at [group]
six, largely reflects relatively low
domestic savings, which partly explains
why Turkish banks are more
reliant on short-term external debt
than their peers in other countries,”
S&P said. P6
Norwegians
launch
campaign
for Turkish
tourism
Norwegians have reacted to airline
companies and travel agencies reducing
flights and tours to Turkey and selling
flight tickets at high prices. Having
launched a campaign on social media,
Norwegians wanted tourism companies
to increase capacity, especially in 2018.
A campaign initiated on Facebook to
voice annoyance under the hashtag
#JaJegReiser (YesIamgoing) has
reached half a million people so far. P8

EconomicNewspaper
September
2 Please mention
2017
“Made in Turkey” when writing to advertisers Monthly Economic Newspaper ww.img.com.tr
Mehmet Soztutan
Editor-in-Chief
Dynamism in action
once more
Actually, the Turkish
economy has recorded
remarkable performance
with its steady growth over
the last decade. A sound
macroeconomic strategy in
combination with prudent
fi scal policies and major
structural reforms in effect
since 2002 has integrated
the Turkish economy into
the globalized world, while
transforming the country
into one of the major
recipients of Foreign Direct
Investment in its region.
The main objectives
of these efforts were to
increase the role of the
private sector in the Turkish
economy, to enhance the effi
ciency and resiliency of the
fi nancial sector on a more
solid foundation. As these
reforms have strengthened
the macroeconomic fundamentals
of the country, the
economy grew with an average
annual real GDP growth
rate of 4.7 percent over the
period of 2002 to 2016.
With ambitious targets
set by the current government,
the Turkey of 2023
is expected to be a more
prosperous and added-value
generating member of the
Letters to the Editor
turkey@ihlas.net.tr
Fed policymakers
Fed policymakers view economic
or policy developments
through the prism of their economic
forecast. Developments
that push the forecasted path
of the economy away from the
Fed’s employment and infl ation
objectives require a compensating
policy response; other
changes do not. Consequently,
to assess the appropriate monetary
response to a new fi scal
program, Fed policymakers
fi rst have to evaluate the likely
effects of that program on the
economy over the next couple
of years.
M. Brown/Paris
Soros
Soros used Quantum Fund
in 1992 to bet successfully
that sterling was over-valued
against the Deutsche Mark,
forcing then-Prime Minister
John Major to pull the pound
out of the European Exchange
Rate Mechanism (ERM).
“The moment of truth is fast
approaching,” Soros said in an
article emailed to reporters.
“The fact is that Brexit is a
lose-lose proposition, harmful
both to Britain and the European
Union. It cannot be undone,
but people can change their
minds.”
“The divorce process would
take at least fi ve years to complete,
and during that time new
elections would take place,”
Soros said. “If all went well, the
two parties may want to remarry
even before they have
divorced.”
M. Bailey/ Franfurt
Letter From
The Editor
international community
with a vital contributing role
to global peace and welfare.
Active on a global scale, Turkey
is also offering investors
a platform to benefit from
emerging opportunities in
other countries, particularly
in the surrounding region.
In this respect, the
exports strategy of Turkey
establishes a production
plan towards export performance.
Basic elements
of this strategy are shifting
production from low technology
sectors to high value
added areas and achieving
new investments in hightech
sectors.
Turkey, with an improved
and investor-friendly business
environment, achieved
considerable success in
both domestic and foreign
investments over the decade,
not only raised the bar
a notch, but is now also on
track to realize its real and
deserved potential; to be
home to investments that
will contribute to new jobs,
new technologies and new
visions.
So, a bright future lies
ahead for Turkey.
Euro versus dollar
The euro began to depreciate
against the dollar in 2014
when the European Central
Bank (ECB) decided on monetary
expansion. However,
the waning expectation that
U.S. President Donald Trump
would deliver his pledges for
economic growth, the failure
of European far-right parties in
elections and the recent statements
of ECB President Mario
Draghi which were construed
as “hawkish” by the markets,
which gave a boost to the euro
and carried it to the highest
point of the last two-and-a-half
years. Following four months of
consecutive soaring, the euro
has been able to spike against
the greenback in July and provided
an almost 10.5 percent
yield to investors.
H. Grag/Basel
Dollar overvalued
The International Monetary
Fund said that the U.S. dollar
was overvalued by 10 percent
to 20 percent, based on U.S.
near-term economic fundamentals,
while it viewed valuations
of the euro, Japan’s yen,
and China’s yuan as broadly in
line with fundamentals.
The IMF’s External Sector
Report - an annual assessment
of currencies and external
surpluses and deficits of major
economies - showed that
external current account defi -
cits were becoming more concentrated
in certain advanced
economies such as the United
States, while surpluses remained
persistent in China and
Germany.
K.Haw/ Nice
Automotive exports rise
41 pct to $2.4B in July
The Turkish automotive industry, a leader in the economy, continued to provide
more than one-fifth of overall exports, increasing 41 percent to $2.4 billion in
July, while its share in total exports rose to 21.2 percent, according to Uludag
Automotive Industry Exporters Association (OIB) data.
While passenger car exports, which
increased 74 percent, were the main
determinant in July, double-digit growth
was experienced with all major export
items. When examined in terms of countries,
exports to Germany - the industry’s
largest market - increased 30 percent
while exports to the U.K. rose 101 percent.
Among others, exports to the U.S.
surged 125 percent while automotive exports
to Italy, Iran, Morocco and Russia
also increased 43 percent, 72 percent, 70
percent and 113 percent, respectively.
According to OİB data, automotive
exports in July surged 41.2 percent to
$2.4 billion when compared to the same
period last year. Also, maintaining the
upward trend, the share of the industry
in total exports rose to 21.2 percent in
July. The sector has been exporting over
$2 billion for 10 consecutive months
since October 2016, while exports from
January to July of this year increased 25
percent to around $16.79 billion.
While passenger cars exports were
dominant in July, all major export items
such as automotive sub-industry, motor
vehicles for goods transportation and
bus-minibus-midibus experienced double-digit
increases as well. When examined
on a product class basis, exports of
Debt and tax
restructuring plan
netted Turkey $6.5 bln
ANKARA-The
Turkish government has
collected almost 23 billion
Turkish Liras ($6.5
billion) through its latest
debt and tax restructuring
plan, Finance
Minister Naci Ağbal
told Anadolu Agency
Tax debt restructuring
Naci Ağbal
Finance Minister
proceeds in May alone totaled 2.57 billion
liras ($726 million), he said. Ağbal said some
12.3 billion liras ($3.48 billion) were collected
in 2016 after the government introduced a
comprehensive tax and public receivables
restructuring plan.
A comprehensive tax and public receivable
restructuring plan went online in August
2016. In the framework of the plan, the
authorities started to receive applications
in November 2016 and the last deadline for
such applications were extended to May
31 from the end of January. Ağbal earlier
noted that a payment postponement system
has been added to the new debt restructuring
plan, which is numbered 7020, adding
that the system would make a further debt
restructuring plan unnecessary.
cars increased 74 percent to $1.56 billion
while automotive sub-industry exports
increased 26 percent to $751 million.
Among others, exports of motor vehicles
for good transportation saw an increase
of 15 percent to $436 million while
bus-minibus-midibus exports soared 60
percent to $136 million.
While car exports increased 54 percent
to Italy, which is the biggest market
for passenger cars, exports to the U.K.
surged 477 percent. There was also an
export increase of 47 percent to France,
77 percent to Spain, 22 percent to Germany,
100 percent to the U.S. and 108
percent to Belgium.
Automotive sub-industry exports to
the top two countries of Germany and Italy
increased 26 percent and 27 percent,
respectively, while there was an increase
of 17 percent to France and Iran. Among
others, the sub-industry exports to the
U.S. and Russia increased 32 percent
and 74 percent, respectively.
Exports of motor vehicles for goods
transportation to the U.K., the country
with the largest share of the exports, increased
37 percent, while exports to Italy,
Belgium and Spain increased 40 percent,
113 percent and 144 percent, respectively.
There was a decrease in exports of
The business volume of
Turkish contractors worldwide
reached approximately
$220 billion during the last
10 years, according to data
from the Economy Ministry.
The contractors ranked
second in the world after
China, taking up 4,152 projects
overseas between 2008
and 2017.
The first contracted project
was carried out in Libya
in 1972; since then until the
last July Turkish firms have
carried out 9,018 projects in
117 countries, totaling $344.7
billion in business volume.
The average project cost
was $37.1 million in 2008,
which doubled to $79.3 million
in July this year. Russia
ranked first with $67.6 billion
(19.6 percent) among projects
carried out in the last
45 years. This was followed
by Turkmenistan with $46.8
motor vehicles for goods transportation
to Slovenia, the Netherlands and the
U.S. by 22 percent, 29 percent and 38
percent, respectively.
In the bus-minibus-midibus product
group, exports to the top-four countries
of France, Germany, Bulgaria and
Italy saw an increase of 96 percent, 139
percent, 700 percent and 110 percent,
respectively.
According to OİB data, exports to
Germany, which is Turkey’s largest export
market on a country basis, amounted
to $353 million in July, increasing 30
percent compared to the same period
of the previous year. The U.K. was the
second-largest market with $272 million
while export growth was recorded as
101 percent. Moreover, exports to the
third-biggest market of Italy were $270
million, an increase of 43 percent.
Automotive exports to EU countries,
Turkey’s biggest market receiving 78
percent of exports, increased 41 percent,
amounting to $1.9 billion. In the seventh
month of the year, a 102 percent increase
in exports to the U.S drew attention
among alternative markets while exports
Eastern European countries and Oceania
increased 64 percent and 50 percent,
respectively.
Turkish firms bag $220B projects
overseas in 10 years
billion (13.6-pct) and Libya
with $28.9 billion (8.4-pct).
Turkish contractors were
mostly involved in construction
projects of highways,
tunnels and bridges that
were valued at $44.1 billion.
Housing projects came in
second with $43.7 billion,
while commercial center
projects ranked third with
$29.1 billion. In 2008, 23
Turkish firms were in the
list of top 250 contractors in
the world, according to the
Engineering News Record,
which is a leading magazine
specializing in the contracting
sector; the number of
Turkish firms rose to 40 by
2016, seven of which were
among the top 100 while for
the first time two Turkish
firms ranked in the top 50
companies with revenues
more than $3 billion.

September
EconomicNewspaper
2017 Please mention
ww.img.com.tr
“Made in Turkey” when writing to advertisers
Monthly Economic Newspaper
3
As global halal
tourism grows,
Turkey eyes
bigger share
A total of 121 million Muslims participated in the
international tourism movement around the world last
year, spending $156 billion on tourism activities.
Turkey, Qatar
cooperates for
cybersecurity
Turkey’s state-run Scientific and Technological
Research Council (TÜBİTAK) and
the Qatar National Research Fund (QNRF)
have signed a deal for scientific and technological
cooperation. The agreement’s first
stage involves cybersecurity as the two allies
face increasing online threats. TÜBİTAK’s
chairman, professor Arif Ergin, told Anadolu
Agency (AA) that they would support
projects for the protection of energy grids,
telecommunications and other infrastructure
from cyberattacks and bolster data security
for mobile devices.
Pointing to last May’s cyberattack against
a state-run news agency in Qatar that paved
the way for the Gulf crisis, Ergin said the
countries need higher security for their cyber
infrastructures. “We have to take measures to
prevent a repeat of what happened in Qatar,”
Ergin said, referring to the hack of Qatar’s
state-run news agency, which resulted in the
distribution of statements falsely attributed to
Qatari leaders, culminating in criticism from
Saudi Arabia. “Turkey has supported Qatar
economically and in terms of defense since
the crisis broke out, and this time TÜBİTAK
will combine its power with Qatar’s power,”
Ergin said, adding that about $2 million will
be contributed to joint projects by private-public
partnerships in cybersecurity.
Turkey plays critical
role in global energy
security
Turkey is a regional power with a “critical”
role in establishing energy security, Turkish
Economy Minister Nihat Zeybekci said.
“Turkey is the center of regional energy
trade,” Zeybekci said at the opening of
EXPO 2017 Astana’s Turkish National Day
event in the Kazakh capital. Commenting
on the EXPO events, Zeybekci said these
expositions could encourage the advancement
of humanity, contribute to the sharing
of knowledge and increase cooperation.
The minister added that Turkey was participating
in EXPO 2017 Astana under the
sub-theme of “Global Synergy for Sustainable
Energy” and pointed out that ideas such
as sharing, equality and peace underlay this
message of synergy. Zeybekci said Turkey
had become one of the world’s leading trade
and investment bases thanks to the progress
achieved in the last 15 years, in particular.
“Our country’s decisive role in the global
economy will continue to increase. You can
be sure of that,” he said.
President Erdoğan urges
Turkish business world to
boost domestic investments
We will work harder. It is time to make investments. Never delay doing
business. Do not lose your spirit of entrepreneurship and investment.”
Do not lose your spirit of
entrepreneurship and
investment. If you make
use of investment opportunities
at such a time, the future will
be much more fruitful,” he said.
Erdoğan also emphasized that the
government is providing major
incentives, from loans to employment,
for anyone who wants to make
investments and grow their business,
adding that they expect businessmen
to take advantage of this and quickly
take action. “I truly believe in MÜ-
SİAD members in this regard. We
will build the new Turkey together,”
he said. Erdoğan requested that
all Ministries prepare a short-term
action plan of 180 days in attempts
to resolve the accumulated problems
of the Turkish people, with programs
that will be made public when preparations
are completed.
According to Erdoğan, preparations
for a much more comprehensive
program, including the period
leading up to the 2019 elections, are
already being carried out and the
2023 vision goals are being updated
while a new study for these goals has
also been initiated.
Erdoğan further said that the economy
has started to show signs of
being on a better course, adding that
there is a clear, steady rise in exports.
Relaying the signs of an uptrend
according to Erdoğan, Turkey’s
annual exports, which dropped to
$142.5 billion in 2016, reached $147
billion by the end of May. “I believe
we will surpass the 2014 record of
$157.6 billion in exports by the end
of the next year, at the latest,” he
said. The president also underline
In a report, “A Strategic Vision for
Turkish Tourism: Halal Tourism,” prepared
by the Independent Industrialists’
and Businessmen’s Association (MÜ-
SİAD) Antalya Branch, the current situation
of Turkish tourism was assessed,
data related to the world halal tourism
market was shared and suggestions to
develop halal tourism were presented.
According to the report, the tourism
sector, which started to develop after
the 1950s all over the world, continues
to grow globally every year, with the
number of international travelers rising
to 1.2 billion people last year from 25
million in 1950.
Emphasizing that participation in
tourism activities has turned into a
that the government will work harder
to achieve these goals, noting that
employment mobilization has begun
bearing fruits.
Meanwhile, Erdoğan also explained
that they achieved a rise of 1.2 million
in employment thanks to contributions
made by the business world,
vowing that they will closely follow
whether the promises in this regard
will be fulfilled.
Erdoğan said that those who attacked
democracy, freedom and the
future of the country in the July
15 coup attempt also attacked the
economy, underscoring that terrorist
attacks and attacks on the democratic
order of Turkey are also attacks
on the Turkish economy.
He said that despite the Gezi Park
protests and the Gülenist Terror
Group’s (FETÖ) attacks on December
17, 2013 and December 25, 2013,
the Turkish economy grew by 8.5
percent in the same year. Referring
to local and presidential elections
that were held in 2014, Erdoğan
also noted that the economy grew
by 5.2 percent that year. “Despite
two elections in 2015 and escalating
terror incidents, we challenged those
who masterminded these incidents by
achieving 6.1-percent growth in the
economy. And even though we experienced
a bloody coup attempt on
July 15, the most severe trauma we
faced in recent history, we engaged
in an intense struggle against terror
at home and abroad and achieved
economic growth of 2.9 percent in
2016,” Erdoğan added.
Touching on the rise in the Borsa Istanbul
Stock Exchange and the fall in
foreign exchange rates, Erdoğan said
need for people now, the report pre-
dicts that the number of international
travelers will reach 1.8 billion by 2030. It
is estimated that the number of people
participating in domestic tourism
activities around the world is around 5-6
billion people.
The report indicates that according to
the United Nations World Tourism Organization
(UNWTO), about 7 percent
of overall world exports ($1.5 trillion)
are due to the tourism sector; thus, one
out of every 11 jobs in the world are related
to tourism. The report points out
that Turkey is a top 10 country when it
comes to the greatest number of tourists
attracted since 2000, and one of the top
15 countries with the highest tourist
income for the same period. Thus, the
both of these indicate full confidence
in the Turkish economy. Moreover,
many indicators such as the surge in
home appliance sales show that the
wheels of the economy are turning
increasingly faster.
According to the president, it is necessary
to look at the economy with
a broader perspective to understand
Turkey’s economic size. Referring
to the fact that Turkey has attracted
$183 billion in international investments
since 2002, he said that the
number of jobs has risen to 27 million.
He said that by adding 6 million
new jobs in the same 14-year period,
Turkey became the only country in
Europe to achieve such a high increase
in employment.
Erdoğan stated that investments
made by Turkish entrepreneurs
exceeded $37 billion and the value
of projects that Turkish contractors
have undertaken abroad crept up to
nearly $300 billion.
“We are carrying out intensive activities
with our businessmen, non-governmental
organizations [NGOs]
and educators in the regions which
we could not have dared to visit as
tourists in the past,” he continued.
Erdoğan noted that Turkey’s total
humanitarian aid reached $6.5 billion
in 2016 alone, emphasizing that Turkey
adopts the principle of working
for the peace and welfare of Turkey
and all of humanity. To conclude,
Erdoğan touched on the significant
progress made in the country’s health
sector. He emphasized that the
Turkish people used to go abroad for
treatment in the past but last year, a
total of 360,000 foreigners came to
Turkey for treatment.
tourism sector has an important influence
on the Turkish economy, contributing
about $88 billion to the country’s gross
domestic product (GDP) last year.
According to the report, the number
of tourists from Organization of Islamic
Cooperation (OIC) member countries
(Malaysia, Indonesia, Uzbekistan, Saudi
Arabia, Iraq, Iran, Azerbaijan, Kazakhstan,
the United Arab Emirates, Kuwait,
Libya, Pakistan, Jordan and Egypt) was
approximately 47.5 million in 2014 with
4.9 million of them coming to Turkey.
The report pointed out: “A total of 12
of these countries are at most five-hour
flight distance to Turkey, and the number
of Muslim tourists they send abroad is
37.1 million people, while the number of
Muslim tourists coming to Turkey from
these close-distance countries is 4.8 million.
In other words, Turkey has managed
to attract only 13 percent of Muslim
tourists from countries that are located
at a flight distance of a maximum of 5
hours. Even an increase of this rate to 20
percent will boost the number of tourists
coming to Turkey by about 3 million
people.”
The report also noted that spending by
tourists from Saudi Arabia, the United
Arab Emirates, Qatar, Kuwait and Iran
during their tourism activities abroad is
about $62.2 billion.
Turkey working
to diversify
tourism market,
minister says
Turkey wants to diversify its tourism
market to reach $50 billion in annual
income by 2023, Culture and Tourism
Minister Numan Kurtulmuş said.
Speaking to reporters in Istanbul,
Kurtulmuş said that Turkey wanted to
expand its tourism offerings to appeal to
visitors from all over the world, including
Chinese, Indian and Japanese tourists,
and not only focus on certain countries
like Germany and Russia.
Turkey is traditionally a popular travel
destination for German and Russian
holidaymakers.
Kurtulmuş also said Turkey wanted
to expand its range of tourism offers to
include winter tourism, as well as more
environmental, ecological experiences.
In his speech, Kurtulmuş also rejected
claims about Turkey’s insecurity for
visitors, saying that Turkish cities are as
much secure as Western cities.
“Istanbul is as much secure as Berlin.
Izmir and Antalya are as much secure
as Vienna, London or New York,” the
culture and tourism minister said, adding
that terrorism is a “global problem
threatening all the cities of the world.”
According to Ministry of Culture and
Tourism, the number of tourists visiting
Turkey increased by 14.5 percent on
year-on-year basis in the first half of
2017. More than 12 million people visited
Turkey in the first six months of the year.
The largest number of foreign visitors
came from Russia in the January-June
2017 period with a total of 1.7 million
Russian tourists spent their holidays in
Turkey. Germany came just below Russia
in the list of foreign visitors coming to
Turkey with 1.2 million tourists.
Meanwhile, arrivals from Georgia, a
country with a population of nearly 4 million,
accounted for more than 1 million
tourists.

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Monthly Economic Newspaper
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September
2017
Go to
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Turk Barter, which
activates the economy
of companies through
facilitating product and
service exchanges, is a
strong alternative to the
banking sector.
Turk Barter was founded a quarter
century ago during the 1994
economic crisis. The company
offered an alternative system
for payment and trade that revived the
country’s economy and later it was then
entitled Turk Barter with the permission
of the Council of Ministers. We
visited the Turkish Barter International
A.Ş. and talked with Chairman M. Sırrı
Simsek, about the details of the operations.
Explaining that they have developed
the barter industry with options
such as leasing, factoring, receivables,
debt restructuring, stock assessment
and idle capacity increase, Simsek said
they aimed to correct the problematic
points in the economy.
You told us about the establishment
of the Turkish Barter? It was born out
of a need for cash flow in the sectors,
but how was this broad information
network operated?
The world needs a new trading and
financing system. The banking sector
has been trying to meet this need for
a long time. The banking system that
is compatible with Islam, which we
call interest-free finance in the recent
period, also added value to the solution
of these problems. When we look at alternative
systems, we see that some are
not used well in some situations. When
we look at factoring in our own country,
we see that it is used very badly and
continues to do so.
Leasing was an intermediate mode,
but then it started to be less attractive
to taxpayers. When we look at
this sense, the market needs different
systems. Turkish Barter has celebrated
its 25th anniversary this year. But the
system is still new to the world. The
banking sector is going to ruins and
continues its classical structure.
Looking at the market, the economy
is running around the banking system,
the foreign exchange system and the
stock market volatility. This can also
be seen in the economic crush of the
whole world due to an incorrect mortgage
application.
The barter system we offer is a product
and service based system. If we look
at the exchange of barter system or the
purchase of companies,
we
cannot get enough
efficiency, so we
do
not define it as a clearing system. There
is a multi-station product and service
organization here. President of Turkey
have made a statement in Trabzon
and said that Turkey grew by 2% while
banking sector grew by 40%. While
the banking sector is growing by 40%,
some are losing money. The bank earns
this profit from the money the citizen
deposits. Where banks earn money
companies go to bankruptcy. Interest
rates are not so high anywhere in the
world. You will do a job in some fields,
you will use interest-bearing loans and
you will earn and pay your debts and
you will grow up. This is possible only
when sales are made at very exorbitant
prices as is the construction sector.
In this sense, the citizens invest the
money in the bank and other citizen is
using this money from the bank paying
higher interests. Those who use the
money and deposit money have no
way of knowing each other. In a barter
system, a product / service investor has
a chance to get to know each other
because we bring them together. The
citizen goes to the bank, deposits the
money at low interest, the bank uses it
at a high interest to another person. If
he knows the person, he will earn more
profit if he gives his money in a safe
way. We do this by bringing companies
together through products and services.
It is the company that negotiates
and buys in the market. In the same
way, the buyer company gains and does
not pay interest. When we look like
this, barter sector is an alternative to
banking in every sense. We have added
options such as leasing, factoring, debt
collection, debt restructuring, stock
assessment and idle capacity to our
service portfolio. Actually, the barter
in the world is not applied in this way
either. We designed this as an alternative
system for the future. For this, we
have told this to the universities, trade
and industry chambers. We made a
presentation about the law proposal to
the Undersecretariat of Treasury and
to BDDK, about a barter law. If the
barter sector obtains the desired legal
base, it will become a very different
system.
You are representing World Barter
in Turkey. You have taken the name
of ‘Turk Barter’ by the decision of the
‘Council of Ministers’. Can we listen
about this process?
In fact, we experienced the severe
1994 crisis when we started. When we
looked the outlook, there were stocks,
debts and receivables of companies.
They could not pay their debts, could
not get their receivable and they could
not sell their wares and inventories. We
used the barter system very well at that
time, and we prepared special projects
for the use of the barter system in the
domestic economy, both in the payment
of domestic debts and in foreign
debts, even in government tenders,
paying the debts of the institutions to
each other, and offered it to the governments
of that period.
We even offered Tansu Ciller, the
then prime minister of Turkey, the first
law proposal that we prepared for added
value of this system to the country’s
economy. We added the name ‘Turk’ by
the decision of the Council of Ministers
on the grounds that Turkey should be
represented abroad, transferred to such
a system, made economical and adapted
to the conditions of the country.
Turk Barter will be the shining star
of the future because everyone
needs a new plane now.
Turk Barter checks are more
robust than bank checks. For
example, you receive a bank
check of TL 20,000, the company
is paying you TL 1,500 when you
do not pay this money. Because the
guaranteed amount of withdrawal
for each check leaf is limited by TL
1,500.
There is a
different system
in Turk Barter
checks; you have
to get approval
at the beginning.
You ask first, by
saying that I’m
going to shop
but the company
wants
to give me a
barter check,
can I get
this check?
The barter
center checks
if you can get
it, you can get
it, if you have
the guarantees and
barter gives the code of authority. We
actually aim to correct many problematic
points with the barter system.
How many member companies do you
have?
We have signed agreements with
more than 10,000 companies. We told
these members about the barter system
and they were convinced. You open an
account at Barter, use it when you have
money, and you will be dealing with
your needs. We recommend anyone in
the economy using barter before applying
for credit to the banks.
Is there any risk that member firms
cannot get the service they need when
they need it?
We do not make any commitments;
a company that manufactures footwear
can sell shoes in its stocks. If you are
demanding raw materials, you have to
wait. We work on the basis of supply
and demand principles.
If the request is to be
processed when the
request is received,
it may wait and
may sell the shoe
after taking the
raw material.
Therefore, we do
not give a guarantee
of buying and
selling.
M. Sırrı Simsek
Chairman
Tourist arrivals in Turkey jump
43.1 percent in June
The number of tourists
visiting Turkey increased
by 14.5 percent on year-onyear
basis in the first half of
2017, Ministry of Culture
and Tourism said . According
to the ministry, 12.3 million
people visited Turkey in the
first six months of the year.
Nearly 3.5 million tourists
arrived in June alone, a
record 43.1 percent increase
in comparison to the same
month last year, the ministry
said. The largest number
of foreign visitors came
from Russia in
the January-June
2017 period
with a total
of 1.7 million
Russian tourists spent their
holidays in Turkey. Germany
came just below Russia in the
list of foreign visitors coming
to Turkey with 1.2 million
tourists. Meanwhile, arrivals
from Georgia, a country
with a population of nearly 4
million, accounted for more
than 1 million tourists. In
June, the number of Russian
Numan Kurtulmuş
Ministry of Culture and Tourism
tourists rose by 21.9 percent
reaching 763,727 people. The
three most preferred destinations
for foreign visitors in
the first half of the year were
Istanbul, Turkey’s tourism
capital Antalya, and western
Edirne. Istanbul hosted 4.39
million tourists in the first six
months of 2017, while 3.27
million visited Antalya.
Turkey’s industrial
production sees year-onyear
increase in June
Turkey’s industrial
production advanced 3.4
percent in June 2017 compared
to the same month
last year, the Turkish Statistical
Institute (TÜİK)
announced.
Turkey’s industrial output
is deemed a vital indicator
for the economy as
it is seen as a preliminary
gauge for GDP growth.
On an annual basis, the
manufacturing index saw
the biggest rise in June,
up 3.8 percent, among all
three main sub-indices,
TÜİK said. In the same
period, the electricity,
gas, steam, and air-conditioning
supply index also
increased by 2.5 percent
while the mining and
quarrying index decreased
by 0.5 percent.
Meanwhile, the country’s
industrial production
declined by 0.4 percent in
June on a monthly basis,
TÜİK noted.In June, the
mining and quarrying
index rose by 1.2 percent
while the electricity, gas,
steam, air-conditioning
supply, and manufacturing
indices fell by 0.6 percent
and 0.5 percent, respectively.
Turkey earns over
$2B from plastics
exports
Turkey exported $2.08 billion
worth of plastic products in
the first six months of the year,
marking a 1.8 percent increase
compared to the same period last
year, according to the Turkish
Plastics Industry Foundation
(PAGEV).During the first half
of 2017, the country exported
798,000 tons of plastic products
to around 150 countries, a press
release said. Total production
was 4.7 million tons and worth
$17.7 billion. Plastic household
and kitchen goods exports rose
30 percent to $197 million in the
same period, while the country’s
foreign trade surplus in plastics
production reached $612 million.
Turkey, which is the second
largest plastics producer in
Europe, and sixth in the world,
has some 6,500 companies and
employs around 250,000 people,
according to the PAGEV. If
the same trend continues in the
country, the production is expected
to increase by 9.4 million tons
and reach $35.5 billion at the end
of 2017, PAGEV said.

September
2017
Monthly Economic Newspaper
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EconomicNewspaper
Please mention
“Made in Turkey” when writing to advertisers
5
İbrahim Küpeli
ibnahim.kupeli@img.com.tr
Turkish
economy on
the right course
Turkey to expand capacity to meet
energy needs with 3
nuclear power plants
“Before the end of this year, we will lay the ground for the
construction of the Akkuyu Nuclear Power Plant. The efficiency
of nuclear energy exceeds 90 percent,” Albayrak said
Energy and Natural Resources
Minister Berat Albayrak
delivered an extensive elaboration
of Turkey’s national
energy strategy, featuring the plan
for the nuclear power plants set to be
launched, drilling operations in the
Mediterranean, solar and wind power
plants, and the utilization of coal with
clean technologies in a live broadcast
on the Turkish TV channel Bloomberg
HT. Emphasizing the importance of
nuclear power for the national energy
supply, Minister Albayrak recalled his
meeting with university professors on
nuclear power plants. Stating that the
operational nuclear power plants will
be greatly beneficial for the energy
needs of the industry, the minister said
that Turkey will be more active in the
realization of nuclear projects.
“Before the end of this year, we will
lay the ground for the construction of
the Akkuyu Nuclear Power Plant. The
efficiency of nuclear energy exceeds 90
percent,” Albayrak said and cited the
partnership with Japanese firms on the
construction of the second nuclear power
plant in the Black Sea city of Sinop.
He also announced that between 2023
and 2030, Turkey will put three nuclear
power plants – the Akkuyu, Sinop and
one other whose location has not been
officially announced yet – into operation.
These nuclear power plants, once
operational, are planned to meet 10
percent of the country-wide electricity
consumption, the minister said.
Regarding the allegations that
nuclear power is detrimental to human
health, the minister elaborated on the
unsubstantiated claims by a comparison
whereby he explained that the
amount of radiation one can absorb
from an x-ray machine exceeds by far
the amount of radiation that one will
receive by living nearby a plant for one
year.
Currently there are plans for three
nuclear power plants on Turkey’s
agenda. In May 2010, Turkey and
Russia struck a deal for the $20-billion
Akkuyu Nuclear Power Plant project
in the Mediterranean city of Mersin.
Dependent on imports for almost all of
its energy, Turkey has embarked on an
ambitious nuclear program, commissioning
Rosatom in 2013 to build four
1,200-megawatt (MW) reactors.
In June, Russia’s state nuclear
energy corporation Rosatom and the
Turkish consortium Cengiz-Kolin-Kalyon
(CKK) signed a deal for the transfer
of shares. At the ceremony organized
within the scope of the “IX International
Nuclear Energy Forum ATOM-
EXPO,” it stipulated that the latter
will acquire a 49-percent stake in the
Akkuyu Nuclear Power Plant.
The plant, where the first reactor
will start working in 2023 as announced
before by Minister Albayrak, will
produce approximately 35 billion kilowatt-hours
(kWh) of electricity every
year, once completed. The power plant
will have a service life of 60 years. The
project has repeatedly run into delays,
including being briefly halted after
Turkey downed a Russian jet near the
Syrian border in November 2015. Ties
between the two countries have since
normalized and work on the plant has
resumed. The Turkish Energy Market
Regulatory Authority (EMRA) announced
in June that it granted a power
generation license to Rosatom’s Akkuyu
Nuclear Company for a 49-year
period for its Akkuyu NGS project in
the southern city of Mersin. On May 3,
2013, an intergovernmental agreement
on nuclear power plant construction
and cooperation for the Sinop Nuclear
Power Plant, which is the second
nuclear power plant project in Turkey,
was signed with Japan. As stipulated by
the agreement, the Turkey Electricity
Generation Company (EÜAŞ) will
hold a 49 percent stake in the plant
while a Japanese and French company
will have 30 and 21 percent stakes,
respectively. The project is estimated to
cost more than $16 billion according to
Japanese sources.
The Sinop nuclear power plant will
have a total 4,480 megawatt capacity of
electricity generation with four reactors
each having a 1,120 megawatt capacity.
Moreover, despite yet no official announcement
by the government, some
sources have claimed that the third
plant will be constructed in the İğneada
district in the northwestern province of
Kırklareli and the preparatory works
on a third nuclear power have been
initiated in accordance with previous
announcements from President Recep
Germany’s Siemens wins
tender for Turkish wind
power project
Turkey picked Germany’s Siemens as the winning bidder for
a $1 billion wind power project recently, a sign Ankara wants
to keep business separate from the ongoing diplomatic row
between the NATO allies.
Ankara has reassured German
investors, saying their
business in Turkey is not at
risk. Germany was Turkey’s
top export destination,
buying $14 billion worth
of Turkish goods in 2016,
according to IMF data.
A consortium led by
Siemens was awarded
the tender for the project
- which includes the
construction of a 1,000
MW power plant and wind
turbines - after beating out
eight other bidders, Energy
Minister Berat Albayrak
said. The award will mark
an “important contribution”
to bilateral relations,
he said.
The Siemens consortium,
which includes Turkey’s
Kalyon and Turkerler, submitted
a bid of $3.48 cents
per kilowatt-hour, beating
Striving to
diversify energy supply
channels as much as possible,
Turkey plans to build three
nuclear power plants
between 2023 and 2030,
which are expected to provide
10 percent of domestic
electricity consumption,
Energy Minister
Albayrak
said.
Chinese firm Ming Yang,
Germany’s Enercon and
Denmark’s Vestas. The
turbines were due to come
online by 2019, Albayrak
said, adding the project
would increase Turkey’s
wind energy production
by 17 percent. Turkerler
Chairman Kazim Turker
said that 35 percent of the
project would be financed
through international
sources.
Tayyip Erdoğan. During his visit to
China in mid-May to attend the Belt
and Road Summit in Beijing, President
Erdoğan is reported to have discussed
the third nuclear power plant with his
Chinese counterpart President Xi Jinping.
According to presidential sources,
President Erdoğan and his counterpart
Xi Jingping agreed on the acceleration
of the construction of the third nuclear
power plant in Turkey.
“Nuclear energy is sine qua non,
essential for Turkey’s energy supply
basket. It bears significance for the
energy supply, security and geopolitical
strength of Turkey,” International Energy
Agency Chief Executive Dr. Fatih
Birol told Daily Sabah in a previous
interview when explaining the last main
energy area Turkey must keep focusing
on. Yet, he warned that the most vital
issue in appropriate energy actions
must be taken to establish nuclear
power plants and deploy the correct
technologies in association with project
partners. “Turkey is moving in the right
direction with regards to the use of energy,”
he said and cited the energy diplomacy
traffic Turkey has been caught
up in to be a home to energy projects
that will ensure the supply security of
Europe.
According to the economic growth
indicators such as national income,
per capita income and per capita
consumption, the Turkish economy
advances on the way to grow more in
the upcoming period...
Despite unstable conditions in its
geographic region, the country economy
sustains its growth more than lots
of countries in the world.
The country economy cannot operate
its potential completely regarding
current situation in the region. When
we have a look at the situation in the
region, the neighboring and surrounding
countries of Turkey, such as Syria,
Iraq, Iran, Egypt, Libya, Yemen do not
have a suitable condition to operate
its economic activities efficiently. Egypt
does not have exact democracy with
its all institutions to be able to run in
its course. Syria, Iraq, Libya and Yemen
suffer the most from terrorism and
strife since 2011 onwards.
Whenever these events, insurgences
end up, these countries’ investment
and development potential will
disclose and this might bring huge
business opportunities not only for
the Turkish business, but also for the
entire world.
Another advantage in this issue, the
location of Turkey has a crucial importance
in terms of doing business and
economic activities, because of intersecting
between the Europe and Asia
continents.
In this respect, one of the foremost
huge investments that would play a
triggering role in the economic development
and new investments is the
third airport project of Turkey.
Nearly one year later in 2018 the
world’s number one airport’s first
phase will be inaugurated for service
in Istanbul. Playing also an outstanding
role in the aspect of international air
transport, the third airport of Istanbul
will not only contribute to the Turkish
economy and employment as well as
for the international aviation sector
regarding the global businesses shifting
from the west to eastern countries…
Turkish economy has grown three
fold in the last 15 years. During this
period, growth percentage in the Turkish
economy averagely became 5-6
percent per annum. There is yearly 6-7
percent growth potential on average
in the Turkish economy. This means
that the country has a capacity for the
new business and investment as well
as generating job.
Surpassing the expectations the
fi rst quarter growth rate which was
5 percent urged to revise the growth
rate for the year 2017 that predicted
to be between 5 and 7 percent.
Growing 5 percent in the first quarter
is interpreted that the economy
is recovering swiftly beyond expectations.
With the first quarter growth rate
Turkish economy achieved a growth
rate more than 23 EU countries’ rate.
The stock market has also showed
a good performance and reached an
all-time high in August this year.
Featuring as a driving force in the
economy, the export enters upward
trend compared to last year’s figure.
All of these indicators show that
Turkish economy is on the right
course.

EconomicNewspaper
6 Please mention
“Made in Turkey” when writing to advertisers
Monthly Economic Newspaper
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September
2017
Turkey’s İhlas signs strategic
partnership with Chinese company
as part of project to revive Silk Road
İhlas has become a partner of China’s
groundbreaking “One Belt One
Road” initiative to revive the ancient
Silk Road. The company, which signed
a strategic partnership with one of leading
Chinese firms, the China Silk Road
Group, will establish an joint company and
will take an active role in the coordination
of future projects.
Having signed a remarkable agreement,
İhlas Real Estate Development will aim to
bring together Turkish companies seeking
to fund projects with Chinese companies,
which will then pave the way for partnerships
with Chinese companies in terms of
investments and funding for major projects
in Turkey.
China has reportedly allocated $900
billion in total for planned investments in
68 countries as part of the “One Belt One
Road” initiative, which was announced at
a summit in May with the participation of
state officials, including President Recep
Tayyip Erdoğan.
As part of the agreement, China Silk
Road aims to boost cooperation by submitting
bids and proposals to various tenders,
including those by the Petroleum Pipeline
Corporation (BOTAŞ) and infrastructure
projects and to provide consultancy services
in partnership with Petro China. İhlas
is expected to participate in BOTAŞ gas
storage tenders. Speaking at the signing
ceremony held in Istanbul, Chairman and
CEO of İhlas Holding Ahmet Mücahid
Ören said that the agreement will take the
company to a next level, move it beyond
the borders of Turkey.
He noted that the summit attended by
President Erdoğan has proved to be a success:
“The company we jointly formed with
our Chinese partner is one that is assigned
by the Chinese government to boost the
Silk Road initiative” Ören said, noting that
the company had experienced obstacles
along the way and needed the help of companies
like İhlas to overcome such difficulties.
In this regard, Ören noted that İhlas
will be the starting point for the Chinese
company’s relations in Turkey and will
enhance bilateral cooperation. “One Belt
One Road” Forum held in China on May
14-15 focused on infrastructure, transportation,
economic collaboration, trade,
industrial investments, energy resources,
financial incentives, environmental protection
and naval cooperation.
The forum hosted the U.N. Secretary-General,
the Chairpersons of the
World Bank and the International Monetary
Fund (IMF) as well as the presidents
and prime ministers of 28 countries and
more than 250 ministers, with the aim to
revive the ancient Silk Road.
Ties between Russia, Turkey
‘promising’, says new envoy
Turkish banking sector
remains structurally
stable
Turkish banking sector is
regulated and monitored more
favorable than emerging economies,
but it is still reliant on
short-term external debt, according
to global rating agency
Standard and Poor’s.
“Our assessment of [banking]
industry risk in Turkey,
at [group] six, largely reflects
relatively low domestic savings,
which partly explains why
Turkish banks are more reliant
on short-term external debt
than their peers in other countries,”
S&P said.
According to the rating
agency’s report, Turkey’s banking
sector has been classified
in group six with Brazil, Italy,
Thailand, Slovenia, Brunei,
Colombia, Guatemala, Trinidad
and Tobago, and Uruguay.
S&P highlighted moderate
household and corporate
indebtedness in Turkey along
with bank regulation, supervision
and governance, comparing
it favorably with that
of many emerging economies.
“Positively, the [banking] system
remains structurally stable
and continues to adequately
price risks, as demonstrated by
healthy profitability metrics,”
the agency said.
Noting the factor of weaknesses,
the S &P underlined
moderate per capita income
and high inflation in Turkey.
“Although banks have
granular and well-diversified
loan books, their credit risk
is accentuated by rapid credit
growth in years of fast economic
growth and high share
of lending in foreign currency,”
the agency added.
S&P holds Turkey’s foreign
currency credit rating
at BB and its local currency
credit rating at BB+ in the
long term. The rating agency
released latest update for the
country in January by lowering
Turkish economy’s outlook to
“negative” from “stable.”
Current relations between Moscow and Ankara are “promising”, Russia’s new
ambassador to Turkey, Alexei Yerkhov, has told Turkish media.
In the meantime, it requires a serious
effort to bring them [relations] to a higher
level,” Yerkhov told Ankara representatives
of various media groups,
including Anadolu Agency Editor-in-Chief
Metin Mutanoglu, who met the diplomat
at the Russian Embassy in the Turkish
capital. The newly appointed ambassador,
previously the head of the Russian Foreign
Ministry’s Crisis Management Center, replaces
Andrey Karlov, who was assassinated at
an art exhibition in Ankara on Dec. 19 last
year.
Karlov had been delivering a speech at the
opening of an art gallery when a gunman
shot him several times. Turkish-Russian relations
were tested after Karlov’s assassination.
However, Russian leader Vladimir Putin
described the shooting as a “provocation”
designed to undermine ties with Turkey.
Yerkhov insisted political dialogue between
Russia and Turkey was growing. “I am
talking about the communication between
our senior management. Phone discussions
between Russia’s president [Vladimir Putin]
and Turkey’s president [Recep Tayyip Erdogan]
have gained significant momentum
recently,” he added. Yerkhov said Karlov’s
killing had left both the Russian Foreign
Ministry and the public in deep sorrow. “We
know that the investigation carried out by
Turkey continues. We know that the institutions
conducting the investigation in Russia
are in intensive contact with their Turkish
counterparts.
“We are sure that after completing the
investigation, the results will be shared
with the public and the Turkish people,”
Yerkhov said. He also said Moscow appreciated
Turkey’s steps to immortalize Karlov’s
memory. Ankara renamed Karyagdi Street
in Cankaya district, where the Russian embassy
is located, after Karlov.
Yerkhov also served as Russia’s consul
general in Istanbul between 2009 and 2015.
“During my six years of service, of course, I
had difficult and beautiful times, but these
six years were the happiest years of my life,”
he said. Yerkhov said there was “very tight”
coordination between Moscow and Ankara
on Syria, based on “the context of the
Astana process”. The ambassador said the
fundamental aim of the Astana talks process
Alexei Yerkhov
Russia’s new ambassador
was to produce a non-conflict atmosphere
in some regions of Syria. “We know that
the situation in northern Syria is now very
sensitive and it has become sensitive in the
light of recent developments. The sensitivity
of this situation indicates that we should
have close the cooperation between the two
countries,” Yerkhov said. About the Syrian
peace talks in the Kazakh capital Astana,
Yerkhov said humanitarian aid could be
delivered to regions where clashes had been
stopped. Yerkhov said the Astana process
did not collide with Geneva-based talks,
adding: “For this reason, institutions and
organizations that can contribute positively
to both processes should definitely take part
in it.”
Recep Tayip Erdoğan
Turkey president
Yerkhov said the trade volume between
Moscow and Ankara had decreased, but
economic relationships overall had developed.
“We think there is still substantial
potential in trade between the two countries
which has not been discovered,” he added.
Erdogan frequently reiterates that Turkey’s
desire is to increase mutual trade volume
with Russia up to $100 billion. After Turkey
shot down a Russian military jet over an
airspace violation in November 2015, Moscow
took several measures against Ankara,
including banning imports of Turkish agricultural
products and ending visa-free travel
for Turks. In June, Moscow lifted the ban on
some agricultural produce and Turkish companies
involved in construction, engineering,
and tourism. Yerkhov did not comment on
the delivery of a Russian air missile system
to Turkey, saying: “This is a question that I
do not want to answer.”
“Due to its sensitivity, it is being discussed in
detail by both Turkish and Russian media.
There is a huge humming noise both in
Washington and Brussels on this issue. If
you look at the Russian websites, you will
find many different interpretations,” he said.
Yerkhov said his every word on this issue
could be perceived as true or different, or it
can be abused. “My offer is to talk this issue
after a while,” he added. Erdogan previously
said negotiations on the missile system had
been “largely” completed and he said the
purchase of S-400 system is not “worrying”.
Russian presidential aide Vladimir Kozhin
said in late June that Moscow and Ankara
had agreed on the delivery of S-400 mobile
systems but that the Kremlin had not approved
a loan for the deal.
The S-400 system was introduced in 2007
and can carry three types of missiles capable
of destroying ground and air targets, including
ballistic and cruise missiles. It can track
and engage up to 300 targets simultaneously
and has an altitude ceiling of 27 kilometers
(17 miles).
Turkey’s
machinery
exports hit
$8 billion
in seven
months
Turkey’s machinery
exports rose by 5.2
percent to $8 billion
in the first seven
months of this year
compared with the
same period of last
year. According to
data from the Machinery
and Accessories
Exporters Union
(MAIB), one of the
sectors that provided
the biggest increase
in exports was machinery.
Between January and
July, Germany was
the top destination
for Turkey’s machinery
exports, while
there were also significant
inroads into
the Russian market.
Exports to Russia
rose by 62 percent to
$161 million during
the same period.
“Considering the
potential for new investment
in Russia, it
seems appropriate to
raise machine exports
to higher levels,” said
the MAIB’s Executive
Board Chairman,
Adnan Dalgakıran.
“We believe that the
increase in exports
will continue in the
second half of the
year,” Dalgakıran
added.
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September
2017
Monthly Economic Newspaper
ww.img.com.tr
EconomicNewspaper
Please mention
“Made in Turkey” when writing to advertisers
7
Foreign companies eager to
finance Turkey’s megaprojects
Foreign banks, which saw
that political stability in Turkey
gained continuity following
the referendum, have put
major projects in the country
under their radar. Leading
banks in Germany have lined
up to finance the third airport
project. Accordingly, Germany’s
largest bank, Deutsche Bank,
has launched negotiations to
refinance the third airport.
A 4.5 billion-euro financing
agreement was signed with six
banks for the first round of the
150 million passenger-capacity
project. Previously, Deutsche
Bank offered to refinance the
first phase financing package for
the İzmir-Istanbul highway project.
The bank held talks with
eight Turkish banks again, and
the loan was renewed at a lower
rate. Moreover, Export-Import
Bank of Korea (KEXIM)
Turkey Chief Representative
Ahn Sang-Seon pointed out that
the Çanakkale 1915 Bridge is an
important project not only for
the development of the region
but also for Turkish history,
stressing that this project will
be realized where the Turkish
military achieved an important
victory and will be inaugurated
in 2023 when the 100th anniversary
of the Republic of Turkey is
celebrated. “During the bidding
process, we sent our letter of
intent about the financing of the
project to the consortium. We
currently continue our support
for the financing of the project,”
Sang-Seon added.
The consortium that won
the bid for the Çanakkale
1915 Bridge has two Korean
contractors and Turkey’s
leading groups, Limak and
Yapı Merkezi. Daelim and SK
fulfill an important criterion of
having a Korean investor group
among Kexim’s financing terms.
Sang-Seon, who met a group of
journalist, provided information
about the bank. Sang-Seon
said that Kexim, founded in
1976, has 28 agencies around
the world and that they opened
their agencies in Turkey three
years ago. Suggesting that Turkey
is a market that offers very
attractive opportunities for investors
in developing countries,
Sang-Seon said the country’s
economy entered the stabilization
process very quickly in
2017, indicating that dollar-TL
parity has currently stabilized
around 3.50 while occasionally
rising to TL 4. “Exports grew by
8 percent in the first quarter last
year. Turkey is a country with
strong potential. Investments by
Korean companies in Turkey are
increasing and their targets are
growing. We are here to support
these investments,” he said.
Sang-Seon said that Korean
investors recently undertook
some important purchases in
Turkey, noting that CJ CGV
purchased Mars Cinema for
$800 million and that they
financed $180 million of this
purchase. “Apart from this
project, we made a loan of $1.5
billion available in Turkey in
June, including financing for
the Eurasia Tunnel, the Third
Bridge, the Kırıkkale Natural
Gas Power Plant and the Gaziantep
City Hospital project,”
he said, adding that the Çanakkale
1915 Bridge and Highway
project is next. Underlining
that the project will contribute
to development in the region
in many ways, Sang-Seon said
that they are also aware of its
importance in terms of the history
of the Republic of Turkey,
stressing that this project will
be realized in the region where
the Turkish army achieved an
important victory and will be
inaugurated in 2023 when the
100th anniversary of the Republic
of Turkey is celebrated.
Pointing out that the bridge will
be the longest suspension bridge
in the world, with a central span
of 2,023 meters, Sang-Seon said:
“During the bidding process, we
sent our letter of intent about
the financing of the project to
the consortium. We currently
continue our support for the
financing of the project,” The
consortium of banks to finance
the project is expected to be
formed in August or September
and financing will be provided
as soon as possible, while the
closing is expected to be completed
by March 2018. Detailed
engineering and design studies
for the bridge continue.
Humor
“Quality is
remembered long after
the price is forgotten.”
PARADOX
The paradox of our time in
history is that we have taller
buildings, but shorter tempers;
wider freeways, but narrower
viewpoints; we spend more,
but have less; we buy more,
but enjoy it less.
We have bigger houses and
smaller families; more conveniences,
but less time; we have
more degrees, but less sense;
more knowledge, but less
judgment; more experts, but
fewer solutions; more medicine,
but less wellness.
We have multiplied our
possessions, but reduced our
values.
We talk too much, love too
seldom, and hate too often.
We’ve learned how to make
a living, but not a life; we’ve
added years to life, not life to
years.
We’ve been all the way to
the moon and back, but have
trouble crossing the street to
THOUGHT OF THE
MONTH
meet the new neighbor. We’ve
conquered outer space, but
not inner space; we’ve cleaned
up the air, but polluted the
soul; we’ve split the atom, but
not our prejudice.
We have higher incomes, but
lower morals; we’ve become
long on quantity, but short on
quality.
These are the times of tall
men, and short character;
steep profits, and shallow
relationships.
These are the times of world
peace, but domestic warfare;
more leisure, but less fun;
more kinds of food, but less
nutrition.
These are days of two incomes,
but more divorce; of
fancier houses, but broken
homes.
It is a time when there is
much in the show window and
nothing in the stockroom.
THE ECONOMIST
What is a problem?
Well!!!
If the only tool you have
is a hammer , you tend
to see every problem
as a nail.

EconomicNewspaper
September
8 Please mention
2017
“Made in Turkey” when writing to advertisers Monthly Economic Newspaper ww.img.com.tr
Norwegians launch campaign for Turkish tourism
A campaign that was launched on
Facebook to voice annoyance using the
hashtag #JaJegReiser (YesIamgoing) has
gone viral which has reached half a million
people so far
Norwegians have reacted to airline companies
and travel agencies reducing flights and tours
to Turkey and selling flight tickets at high
prices. Having launched a campaign on social
media, Norwegians wanted tourism companies
to increase capacity, especially in 2018.
A campaign initiated on Facebook to voice
annoyance under the hashtag #JaJegReiser
(YesIamgoing) has reached half a million
people so far.
Number of Iranian
tourists may exceed
German visitors to
Istanbul
Those who supported the campaign, initiated
by Steinar Johansen, 67, and a student of
communication named Çınar Şimşek, have
complained of the low number of flights and
high ticket prices.
A user on a Facebook page called Alanya Scandinavian
Community (Alanya Skandinaviske i
Samfunn Alanya), which has more than 10,000
followers, wrote: “What can I do if airlines and
charter companies cut off all the roads?” and
another suggested a direct complain should be
conveyed to travel companies.
Other followers of the page wrote: “It is time
for people to understand that there is not a war
in Turkey and it is safe to visit the country,”
“Here in Norway winter is cold, I recommend
warm coast in the far south” and “I returned
from Alanya two weeks ago and I am looking
forward to going again.”
Iranians ranked second after Germans in the distribution of tourists
visiting Istanbul by country, which is leading to expectations
that Iranian tourists, who account for 7.5 percent of all tourists
coming to Istanbul, will soon replace Germans, who make up for
9.4 percent of the tourists visiting the city.The number of Iranian
tourists in Istanbul, which is visited by about 10 million tourists
every year, has followed an upward trend in recent years. The effects
of the economic revival experienced after the removal of the
embargo on Iran have been also reflected in Istanbul’s tourism.
Antalya
eyes over
10 million
tourists in
2017
Health tourists
spend 10 times
more in Turkey
than vacationers
“We will likely attract nearly 10.5 million tourists this year
if no negative incident occurs,” he added. Antalya Governor
Münir Karaloğlu said the number of arrivals to the
resort rose by 65 percent by mid-August compared to the
same period of 2016. The resort has thus hosted nearly
6.5 million tourists over the course of this year. “The
extension of the public holiday for the Eid al-Adha to 10
days is of great importance for reviving Turkey’s local
tourism. We have needed to fill our gap in foreign tourists
with local tourists,” he said, adding that hotel occupancy
rates during the 10-day holiday would hit 100 percent.
As Turkey becomes a growing destination in the health sector,
offering high-quality services and attracting patients
from around the world, it was reported that per capita
expenditure of foreign tourists who come to Turkey for
treatment is 10 times higher than of those who come on
vacation. Foreign visitors coming to Turkey for healthcare
tourism are reported to spend almost 10 times more than
those who come for vacation, according to the Association
of Health Strategies and Social Policies (SASOMER).
Number of
properties sold
to foreigners
soars by 65.3
percent,
TurkStat
reveals
The number of residential properties
sold in Turkey advanced by
42.3 percent year-on-year in July,
according to Turkish Statistical
Institute (TurkStat) data revealed..
The data showed that a total of
115,869 houses changed hands in
the month, up by 19 percent compared
with a month earlier.
Commenting on the July
figures, Melih Tavukcuoglu, head
of the Istanbul Anatolian-side
Contractors’ Association, said that
the rise in housing sales reflected
the trust in the sector as well as the
positive effects of real estate campaigns.
“House sales to foreigners
became 1,726, increasing 65.3 percent
compared to the same month
of the previous year,” TurkStat
said. Nearly 31 percent (or 528
units) of the total sales to foreigners
were in Istanbul, the country’s
largest city by population.
Following Istanbul, the Mediterranean
holiday resort city of
Antalya came second with 386
properties, while the Black Sea
province of Trabzon came third
with 121 units.
The TurkStat figures showed
that Iraqis topped the list of buyers
with 293 properties, followed by
Saudis with 248 units, Kuwaitis
142, Russians 118 and Britons 76.
FDI inflow from EU countries
to Turkey up by 61 pct
Foreign direct investment (FDI)
by European Union countries into
Turkey increased by 61 percent
in the January-June period when
compared to the same period
last year. Data provided by the
Ministry of Economy indicates that
government measures to strengthen
the economy and incentives
for foreign investors increased the
investment inflow to Turkey from
many countries, especially the EU.
Foreign direct investment inflow to
Turkey from EU countries reached
$2.7 billion in the first half of this
year, an increase of 61 percent
compared to the same period last
year when FDI from the region
amounted to $1.7 billion.
This accounted for 66 percent
of the total investment of $4.1
billion that came to Turkey in the
same period.
While investment inflow from
the Netherlands increased 104
percent from $403 million to $821
million during this period, investment
from Germany decreased
by 6 percent from $181 million to
$170 million.
In the first half of this year, investment
inflow from Asian countries
also increased significantly. In
the January-June period, investment
inflow from Asian countries
rose by 138 percent to $1.1 billion
from $481 million in the same
period last year. Investment inflow
from Gulf countries, on the other
hand, amounted to $561 million,
an increase of 322 percent in the
same period.