Made in Turkey June 2020

Monthly Economic Newspaper June - 2020 www.img.com.tr

World Bank

extends loans of

250 mln euros for

Turkish exporters

The World Bank’s Board of Executive Directors

has approved a partial credit guarantee

in the amount of 250 million euros (around $273

million) to the Export Credit Bank of Turkey (Türk Eximbank) as part of the Turkey Long-

Term Export Finance Guarantee Project, according to a statement. Page4

“Made in Türkiye” spreads goodness

to the world

DHL Express, has undertaken the project’s logistics support, will deliver

kits to 10,000 destinations in more than 60 countries. DHL Express

will bring Turkey’s goodwill message to a much wider audience with

the #GoodnessFromTürkiye tags to be added to every international shipment

for 2 months and raise awareness by carrying the same message on

its domestic courier vehicles.

TIM, continuing to work non-stop at a time when the Covid-19 epidemic

hit international trade drastically, has brought the“ national

production mobilization” it launched into an international dimension.

International promotion and solidarity work will be carried out with the

#GoodnessFromTürkiye project implemented by TTG, active within TIM.

Page4

IKMIB determined to increase its export volume in line with the normalization process

IKMIB leads the way...

‘Turkey may earn $20B in chemical exports in 2020’

Adil Pelister, the Chairman of Istanbul Chemicals and

Chemical Products Exporters’ Association (IKMIB)

Ankara eyes

sustainable, balanced

trade with Beijing

Ruhsar Pekcan Türkish Trade Minister

Turkey wants to make its trade with China

more sustainable and balanced by enabling

high value-added exports, Trade

Minister Ruhsar Pekcan said. Pekcan made the

comments after holding a phone call with her

Chinese counterpart Zhong Shan. Page 3

Turkey sent aid to at

least 57 countries to

fight virus

ISTANBUL-Turkey could make a

revenue of $20 billion in chemical

exports this year, almost the same

of $20.6 billion last year, despite the

pandemic. The chemical sector has been

facing a difficult period due to the pandemic

but the normalization process started as

of June, Adil Pelister, the Chairman of

Istanbul Chemicals and Chemical Products

Exporters’ Association (IKMIB), told a

webinar.

The expansion will start in the sector and

it will see the same performance with

previous years, he said. The government’s

steps to cushion the economic fallout of

the pandemic affected the sector positively,

according to Adil Pelister.

The chemical sector’s exports to EU

countries account for 50% of the total, he

added: “With the normalization in the EU,

we will see a significant increase in our

exports.”

The novel coronavirus, which first appeared

in China last December, has spread to 188

countries and regions across the world,

affecting several sectors deeply.

The virus has killed nearly 386,800 people

worldwide, with total infections reaching

over 6.55 million and more than 2.83

million people having recovered from

Turkey’s central bank pledges measures

to support post-pandemic recovery

Murat Uysal Central Bank of the

Republic of Turkey

Turkey’s central bank will rapidly take decisions

needed by the country and the economy to counter the

fallout from the coronavirus outbreak and to support

the post-pandemic recovery and will implement them

in an effective manner, the bank’s governor said. “The

monetary measures we have taken are aimed at supporting

production and financial stability so that this period can

be overcome with minimal damage,” Central Bank of

the Republic of Turkey (CBRT) Governor Murat Uysal

told the 12th International Conference on Economics and

Finance. Page7

Turkish automotive industry ready

to meet growing demand

the disease, according to figures compiled by the US’ Johns

Hopkins University.

Istanbul Chemicals and Chemical Products Exporters’

Association (IKMIB) is a professional establishment which

deals with all of the export activities of its members. It was

established in 1991 and it has around 7750 members. The major

target of the Association is to increase the export volume of

Turkish Chemicals and Chemical Products Sector. Page5

Turkey’s 1st domestic car plant

gets environmental green light

Turkey’s Environment

and Urbanization

Ministry approved

the Environmental Impact

Assessment (EIA) for the

construction of Turkey’s first

domestic car plant.

The Automobile Joint Venture

Group (TOGG), a consortium of

Turkey’s five major companies

that joined forces to manufacture

the domestic car, announced

on Twitter that the factory has

successfully completed the

EIA. The assessment consists

of information on the potential

environmental and social impacts

of building a smart plant in the

Gemlik district of the northwestern

province of Bursa. Page3

Turkey has so far delivered aid to at least

57 countries around the globe to help

their fight against the coronavirus outbreak.

“We provided medical equipment support to 57

countries,” Turkish Foreign Minister Mevlut

Cavusoglu said on Monday. While fighting the

virus domestically with weekend lockdowns,

quarantines and social isolation, Turkey continues

to supply medical aid to many countries.

Demand for automobiles has

steadily risen since early June

following the introduction of

low-interest loan packages from public

lenders and the easing of strict lockdown

measures in Turkey, but supply shortages

are forcing potential buyers to walk

away empty-handed.

JPMorgan, EBRD

to support Turkish

businesses

Car dealerships across the country have

reported that domestic demand, which

has been deferred since the last quarter

of 2019, began to revive after the country

started to reopen but car stocks are

still limited due to global supply chain

disruptions caused by the coronavirus

pandemic. Page5

Turkey, India only G-20

countries to post

growth in Q1, OECD says

Nearly all of Turkey’s tourism

facilities to reopen in July

All the tourism facilities in Turkey which were planned to be

reopened as part of the normalization process are expected

to open their doors in July, Culture and Tourism Minister

Mehmet Nuri Ersoy said. Speaking to CNN Türk, Ersoy commented

on the revival of tourism in the country, noting they regularly

conduct meetings with counterparts in other countries who find Turkey’s

health tourism certificate program very successful.Page 6

Turkey: Agricultural,

animal production hub

beyond region

EconomicNewspaper

June

2 Please mention

2020

“Made in Turkey” when writing to advertisers Monthly Economic Newspaper ww.img.com.tr

Turkey to back import-cutting investments via central bank credit package

Turkey will continue to support investments

that are set to increase

exports while decreasing imports,

Treasury and Finance Minister Berat

Albayrak said, speaking of the investment

registered advance credit package

announced by the Central Bank

of the Republic of Turkey (CBRT).

Citing a recent announcement that

the CBRT would start reallocating

its Turkish lira rediscount credits for

firms, Albayrak said a total of TL 400

million ($59 million) would be provided

to companies with a maximum

maturity of 10 years.

By the end of March, the bank announced

that Turkish lira rediscount

credits of up to TL 60 billion would be

extended to exporting and FX-earning

services to contain the adverse effects

of the global uncertainty caused

by the coronavirus pandemic.

The central bank said the country’s

Berat Albayrak Turkish Treasury and Finance Minister

banking system had so far effectively

met the credit needs for working capital.

The CBRT, in line with government

efforts to reduce Turkey’s dependence

on imports, decided to reallocate TL

20 billion of the limit of Turkish lira

rediscount credit facility as advance

loans against investment commitment

for more effective utilization to

support investments in select critical

sectors.

The remaining TL 40 billion limits

of Turkish lira rediscount credits

will continue to be extended through

Turk Eximbank with an allocation of

TL 20 billion, as well as through stateowned

and other banks, with allocations

of TL 10 billion each.

The companies that increase employment,

contribute to the current

account balance and carry out high

added-value production will be offered

with the support credit in Turkish

lira with a fixed interest rate, the

minister noted.

At first, loans will be extended

through the Development and Investment

Bank of Turkey. Other development

and investment banks may get

involved in the facility later.

According to a statement released

by the Development and Investment

Bank of Turkey, the bank aims for as

many companies as possible to benefit

from the support scheme which is

bounded by TL 400 million for each

company.

With the support package, the bank,

in line with the targets of sustainable

development in Turkey, provides

loans for companies that support exports

and reduce imports, decrease

foreign dependence and reduce the

current account deficit while increasing

employment, productivity and investing

in high value-added production,

the statement noted.

The loan, which is open to the use

of firms that have an Investment Incentive

Certificate and will invest in

priority sectors, protects the investor

against the possible insecurities

caused by fluctuations in the exchange

rate with a maturity of up to

10 years and with a fixed interest rate.

The loan interest rate for banks will be

150 basis points lower than the bank’s

Turkey: Agricultural, animal production hub beyond region

policy rate – the one-week repo rate.

İbrahim Öztop, general manager of

the bank, whose views were included

in the bank statement, noted that the

pandemic, that is challenging Turkey

and the world, has recalled the importance

of development banking in

such exceptional periods.

We provided new financial instruments

that will support the real sector

even stronger with the Turkey

Development Fund, he said, noting:

“We stepped into the year 2020 with

a strong motivation to lead to superior

investment in employment, import

substitution and domestic investment.”

“The value of development banking,

which contributes to the formation

of country economies that are robust

and resistant to unforeseen risks, has

become even more evident in these

difficult days,” he noted.

Turkey is an agricultural and animal

production hub in the region

and even for countries beyond,

with its high production capacity

and food security standards,

according to Orhan Özçatalbaş, a

professor at Akdeniz University’s

Agricultural Policy and Extension

Department.

“The country has the largest agricultural

revenue in Europe and is

second on a global scale,” Özçatalbaş

said.

He said the pandemic increased

the importance of food and supply

security and the world started to

discuss agricultural production’s

efficiency and capacity.

Food security and safety topics

will remain on the global agenda

because the world’s population

is expected to reach 10 billion by

2050 and food production should

increase by 70% to meet needs, he

said. “Turkey sees food safety and

security field as the most strategical

area, and it is a leading country

in supplying security globally.”

Özçatalbaş said Turkey implements

good agricultural practices

to ensure safety in exports and domestic

consumption.

Self-sufficiency

Turkey has an advantage with its

high agricultural production capacity,

domestic labor force, high

equity capital ratio, active farmer

families, new technologies, high

experience, qualified human power

and high logistic standards, he

said.

It increased its raw vegetable and

fruit exports 24% even during the

pandemic in the first quarter.

“Turkey is a self-sufficient country

in terms of cereal products, vegetables,

fruits and animal products,

and it is a net agricultural-exporter

with around $20 billion exports

annually,” he noted. And it can increase

its agricultural capacity by

using technology correctly.

FAO should eliminate hunger, poverty

Regarding the UN’s Food and Agriculture

Organization (FAO) during

the pandemic, he said it should

raise efforts to reach its targets, including

zero hunger.

As an organization with a large capacity

and human resources, FAO

will put the most effective and

functional methods into action as

soon as possible to eliminate hunger

and poverty, he noted.

Its first concrete work should be to

eliminate nonhuman consumption

habits, he stressed.

“Because there is no guarantee that

COVID or similar virus derivatives

will not reappear, in Wuhan region

or other similar regions that do

not have decent living standards,”

he said.

The UN should use its organizations

– FAO and the World Health

Organization (WHO) – more effectively

to fulfill its responsibilities

to ensure rights of health and

life worldwide.

International sanction and intervention

are possible against a global

epidemic threatening humanity

to eliminate or solve the source of

the problem.

The WHO and FAO should make

efforts to turn back to the old normal

instead of determining conditions

of the new normal, he said.

“Our Expectations from Turkish Exporters are

Beyond the Normal”

Turkish Exporters Assembly (TİM)

announced the provisional foreign export

data for May. In May, Turkey's export was $9

billion 964 million, decreasing 40,9 percent.

Exports in the last 12 months decreased by

8,4 percent to $165 billion 732 million.

Ismail Gülle, the Chairman of (TIM)

Chairman of TIM Ismail

Gülle pointed out that

Germany’s Export numbers

faced the biggest decrease

in the last 30 years in April, Japan’s

Export numbers also faced

the biggest decrease after the financial

crisis in 2008. Mr.Gülle

also said “With the normalization

process and the following

months, our expectations from

Turkish exporters are beyond the

normal.”

Virtual trade delegations to be

continued with India and South

Korea

Gülle also said: “We will continue

to hold virtual trade delegations

with the coordination of Trade

Ministry, within the scope of the

‘next generation trade diplomacy’

activities. We organized two virtual

Trade delegations to Uzbekistan

and Kenya in the past weeks.

We plan to hold two more delegations

to India on 15th-19th of

June and South Korea on 22nd-

23rd of June.”

Leader exporter sector was “Automotive

Industry” in May

In May, Export in “Automotive

Industry” was $1 billion 203 million,

“Chemistry Products” followed

automotive with $1 billion

177 million and “Clothing” was

the 3rd sector in monthly export

with $840 million 203 thousand.

In May, according to same month

in 2019, Automotive export decreased

by 56,3 percent, Chemistry’s

export decreased by 48,2

percent and Clothing’s export

decreased by 39,1 percent. In

May, according to same month

in 2019, Turkey’s export to Switzerland

increased by $44,4 million,

to Azerbaijan increased by

$39,1 million and to Venezuela

increased by $15,9 million.

JPMorgan, EBRD to support Turkish businesses

The European Bank for Reconstruction

and Development

(EBRD) said it will

support the growth of small businesses

in Turkey, especially ones

led by women.

The bank will be joined by the JP-

Morgan Chase Foundation, which

became the first private-sector

philanthropic organization to cofinance

grants for EBRD.

“The grant will be used to develop

a new digital platform or solution

that will expand access to

know-how and learning opportunities

for SMEs (small- and medium-sized

enterprises),” it said.

The platform aims at helping

businesses that face challenges

in accessing information and the

business networks they need to

grow.

Additionally, the funding will

lend support to promising women-led

businesses in Istanbul.

The EBRD is a major investor in

Turkey.

Since 2009, it has invested almost

12.4 billion euros (TL 95.9

billion) in various sectors of the

country’s economy, with almost

all investment in the private sector.

The EBRD’s 7 billion-euro Turkey

portfolio is the largest among

the 38 economies where the bank

invests.

June

EconomicNewspaper

2020 Please mention

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“Made in Turkey” when writing to advertisers

Monthly Economic Newspaper

3

Ankara eyes sustainable, balanced trade with Beijing

Ruhsar Pekcan Turkish Trade Minister

Continued From

Page 1

The duo discussed bilateral trade, use of local

currencies in trade, Beijing’s Belt and Road Initiative,

agricultural exports and the agenda of

a joint economic commission.

They also addressed World Trade Organization

reforms, customs issues, cooperation in civil

aviation, specialized free zones and the facilitation

of commercial visas.

Pekcan said Turkey could become an ideal

regional hub for China’s global companies,

thanks to its quality human capital, a customs

union with the European Union and a flexible

incentive system for investors.

She brought Turkey’s free-trade zones, specializing

in research and development, high-tech

and high value-added activities to the Chinese

minister’s attention. Pekcan invited Chinese

firms to invest in these zones as Turkey aims to

speed up international cooperation and become

a global hub.

Continued From

Page 1

It also includes recommendations

for the mitigation of potential

adverse impacts and

enhancement of the beneficial

ones.

In June 2018, five industrial giants

– the Anadolu Group, BMC,

Kök Group, Turkcell and Zorlu

Holding – as well as an umbrella

organization, the Union

of Chambers and Commodity

Exchanges of Turkey (TOBB),

joined hands to produce TOGG.

The country’s long journey to

produce a fully homegrown car

came to an end on Dec. 27 as it

unveiled the first prototypes in

a grand ceremony in the northwestern

town of Gebze.

President Recep Tayyip Erdoğan

unveiled prototypes of a

sport utility vehicle (SUV) and

a sedan, both fully electric and

C-segment models. Mass production

of the SUV will begin

in 2022, while the production of

Pekcan added that Ankara was also ready to

cooperate on the Belt and Road Initiative, China’s

ambitious development program to connect

Asia with Africa and Europe via land and

maritime networks along six corridors to improve

regional integration, increasing trade and

stimulating economic growth. “Some 28,243

tons of freighter was loaded through Baku-Tbilisi-Kars

railway during the coronavirus pandemic,

while it was 4,200 tons per month in

January,” Pekcan said.

Bilateral trade volume between Turkey and

China surged to $21.6 billion (TL 147 billion)

in 2019, up from $1.1 billion in 2001, she added.

Pekcan said China could purchase specific

products, such as motor vehicles, medical

equipment, electrical machinery and agricultural

products, from Turkey for better quality

and under favorable conditions.

“We’re ready to cooperate with China in those

fields,” she added.

Turkey’s 1st domestic car plant gets environmental green light

the sedan model is expected to

launch after the SUV goes into

production.

Mehmet Soztutan

Editor-in-Chief

No deviation from sustainable

recovery and growth

As known, Turkey is one of

the economies least affected

by the pandemic. Turkey is

anticipated to come out of the

coronavirus-driven crisis with

a V-shaped recovery, and will

converge its potential growth

and export performance, according

to the Turkish officials.

Actually, despite the

unfavorable outlook stemming

from the coronavirus related

developments in the second

half of the year, preliminary

data for economic recovery

and confidence in the economy

are promising.

Besides, credit growth has

remained strong thanks to

lower borrowing costs, which

resulted from the Central

Bank’s rate cuts and cheaper

loans provided particularly by

state-owned lenders.

The size of the Economic

Stability Shield package the

government announced to

help firms and households

weather the impact from the

outbreak has exceeded 280

billion liras, excluding deferred

loan payments and interests.

Especially automotive and

textile industries, which are

considered chief players in the

Letter From

The Editor

Turkish economy, started their

production even faster than

the pre-coronavirus period as

of June 1 when the country

lifted almost all of the measures

as the spread of the virus

was declared under control

and a new phase of normalization

has begun.

We know that it is hard to

keep its competitive position

in the world market of emerging

players. Thus, manufacturers

have shifted their operations

to value-added products and

brand names more than ever.

Currently, many of Turkish

manufacturers have their own

designs and brands in international

markets.

As known, Turkey, being

the oldest of our publications,

conveys the messages of the

Turkish exporters for years

by participating in a series of

international fairs and exhibitions.

We wish Turkish business

people and their foreign counterparts

lucrative trade.

Turkey, India only G-20

countries to post growth in

Q1, OECD says

Measures to curtail the

coronavirus pandemic

caused a record drop

in the gross domestic product

(GDP) of G-20 countries in the

first three months of 2020, the

largest decline since records began

in 1998; while Turkey and

India were the only two G-20

economies to register growth

from January through March,

the Organisation for Economic

Co-operation and Development

(OECD) said.

The real GDP in the G-20 countries

dropped by 3.4% in the first

quarter, with the steepest declines

in China, where the economy

shrank 9.8% from the fourth

quarter of 2019, and in France

and Italy, down 5.3% each, the

OECD said in the report.

These were among the first countries

to impose drastic lockdowns

against the virus. “As a comparison,

the GDP fell only 1.5% in

the first quarter of 2009, at the

height of the financial crisis,” it

noted.

Turkey and India were the only

two G-20 economies that recorded

positive growth in the first

quarter, with 0.6% and 0.7% respectively,

the OECD added.

The OECD said provisional data

showed GDP declines of 2.2%

in Germany, 2.1% in Canada and

2% in the U.K.

Output shrank 1.5% in Brazil,

1.3% in the United States and

South Korea, and 1.2% in Mexico.

The contraction was less felt

in Indonesia with a drop of 0.7%,

Japan down 0.6% and Australia

0.3% lower, said the report.

The OECD said year-on-year the

GDP in the G-20 countries contracted

by 1.5% in the first quarter

of 2020, following growth

of 2.8% in the previous quarter.

Among G-20 economies, Turkey

posted the highest annual growth

with 4.4%, while China recorded

the largest annual shrinkage with

6.8%.

The Paris-based agency had already

warned that the coronavirus

crisis has triggered the worst

global recession in nearly a century

– and the threat it poses is

not over yet even if there is no

second wave of infections.

Updating its outlook, the organization

forecast that the global

economy would contract 6% this

year before bouncing back with

5.2% in growth in 2021 – providing

the outbreak is kept under

control.

However, it said an equally possible

scenario of a second wave

of the contagion this year could

see the global economy contract

7.6% before growing only 2.8%

next year.

Hundreds of millions of people

have lost their jobs, and the crisis

is hitting the poor and young

people the hardest, worsening inequality,

the organization said.

In the event of a second wave of

the contagion later in the year,

the economic output could shrink

by as much as 7.6%, it said while

warning that in both scenarios,

the recovery would be “slow and

uncertain.”

The U.S economy, the world’s

biggest, is seen contracting 7.3%

this year before growing 4.1%

next year. In the event of a second

outbreak, the U.S. recession

would reach 8.5% this year, and

the economy would grow only

1.9% in 2021, the OECD said.

Meanwhile, the euro area is heading

for a downturn of 9.1% this

year followed by 6.5% growth

next year. But the recession could

reach 11.5% this year in the event

of a second outbreak, followed by

growth of 3.5% in 2021.

The OECD said it expects the

Turkish economy to contract by

4.8% in 2020, before growing by

4.3% in 2021.

Britain is expected to see the

worst downturn among the countries

covered by the OECD, with

its economy forecast to contract

11.5% this year before recovering

9.0% next year. A second

outbreak could trigger a slump

of 14.0% this year followed by

a rebound of 5.0% next year, the

OECD said.

In the case of a second wave

of the outbreak, it forecast that

the average unemployment rate

across the 37 developed countries

that it represents would double

this year to 10% and see “little recovery”

in 2021. In a more optimistic

scenario, the figure would

be 9.2%. In poorer countries, the

numbers are often higher, and

informal workers are especially

vulnerable.

The agency urged governments to

tackle inequalities by investing in

health care systems, global cooperation

for medical supplies, vaccines

and treatments and retraining

people whose sectors have

been the hardest hit.

EconomicNewspaper

June

4 Please mention

2020


World Bank extends loans of 250

mln euros for Turkish exporters

Continued From Page 1

The project aims to improve access

to longer-term finance for export-oriented

small- and medium-sized and

mid-cap enterprises. Under the project

standards, firms with less than 250 employees

are defined as SMEs, and firms

having between 250 and 1,500 people

on the payroll are accepted as mid-cap.

At least 70 percent of the guaranteed

loan amounts will be used for sub-loans

to the SMEs, and at least 10 percent of

the guaranteed loan amounts will be

earmarked for lending for women-inclusive

firms, said the World Bank

statement.

“The partial credit guarantee will enable

Turkey’s Eximbank to raise up to

500 million euros in long-term funding

from commercial lenders, which will

allow it to provide working capital and

investment sub-loans to private exporting

enterprises,” it said.

“It will also assist Eximbank to achieve

longer maturity and lower all-in cost

than are currently achievable without

a guarantee. The market finance raised

with the support the guarantee will also

allow Eximbank to extend sub-loans to

eligible SME and mid-cap exporters,”

it added.

“In the short term, it is essential to preserve

the export capacity of Turkey as

its firms have severely been affected

by the onset of COVID-19 crisis, so

that they will be able to survive and

contribute to the future recovery,” said

Auguste Kouame, World Bank Country

Director for Turkey.

“This project will contribute to providing

uninterrupted and improved access

to finance to viable exporting firms during

these difficult times. It will therefore

help preserve Turkey’s participation

in global value chains,” he said.

Turkish firms receiving the credit from

Eximbank under the project will be the

main direct beneficiaries. Another project

beneficiary will be Eximbank itself

and the broader universe of Turkish

exporters served by it, insofar as the

project is expected to strengthen Eximbank’s

capacity to raise long-term

funding in international markets, and to

channel this funding into longer-term

loans to exporting enterprises, including

SMEs and women-inclusive firms.

Prior to COVID-19, access to long

term finance was identified as a major

constraint to Turkish firms’ export performance.

COVID-19 has intensified

this constraint.

“Access to finance is particularly constrained

for SMEs who account for 73

percent of total employment, 62 percent

of total revenue, 58.3 percent of

total investment, 55.4 percent of total

exports, and represent 99 percent of

all firms in Turkey,” remarked Alper

Oğuz, task team leader of the project.

“Financing the technology upgrading

and productivity improvement of

SMEs is vital for Turkey to reach its

ambitious export growth goals,” he

added.

IFC supports digital startups

The International Finance Corporation

(IFC), a member of the World Bank

Group, is committing 15 million euros

to Revo Capital Fund II (Revo II) to

support digital startups and ensure their

continued growth and success during

the COVID-19 pandemic. The fund

aims to support development of a more

dynamic digital economy in Turkey

and Central and Eastern Europe. Revo

Capital will use IFC’s financing to invest

in startups that provide technology-based

solutions to consumers and to

SMEs to help them increase productivity

and connectivity.

“Their support is a significant sign

of trust in both Revo Capital and the

Turkish startup ecosystem,” said Cenk

Bayrakdar, managing director of Revo

Capital.

Revo II will focus on the same geography

as the first fund, allocating 65 percent

of its commitments to Turkey, and

the remaining to other countries.

IFC is also establishing a 15-million-euro

envelope for potential co-investment

opportunities alongside funds

managed by Revo Capital.

“This funding addresses a critical gap

in access to early-stage equity, which

is scarce in Turkey and other CEE

countries,” said Arnaud Dupoizat, IFC

country manager for Turkey.

“The investment is essential to ensure

that the region’s digital startups across

various sectors - including software,

fintech, and health tech - are able to

scale up their operations and help

SMEs grow and provide more jobs.”

The IFC has supported private sector

development in Turkey for over 50

years, with a committed exposure of

over $4 billion in the country as of June

2019.

“Made in Türkiye” spreads goodness to the world

While Turkey extends its friendly hand to over 70 countries during the Covid-19 outbreak in support of the global struggle, Turkish exporters take the 'humanity' and 'goodness' movement

one step further by saying 'Made in Türkiye'. Turkish Promotion Group (TTG) carries its activities under the Turkish Exporters Assembly (TIM) in pursuit of the vision of contributing to the

worldwide branding of export sectors. By sending special design hygiene kits to the major traders in the target markets, representatives of trade associations, and the press, TTG aims to revive

the spirit of solidarity in difficult times and tell Turkey's success in production, supply, and exports.


In the framework of this project, TTG

has prepared special design kits consisting

of hygiene products with the

logo “Made in Türkiye” to symbolize

Turkey’s spirit of solidarity in this period

and to increase the country’s brand

value. DHL Express, the project’s

logistical sponsor, will deliver these

kits to major buyers, trade association

representatives, press members, and

world-famous social media phenomena

in more than 60 countries. Moreover,

it will carry the goodwill message

of Turkey and its exporters with the

#GoodnessFromTürkiye tags, which it

will add to each international shipment

for 2 months. The same message will

be placed on domestic courier vehicles.

İsmail Gülle (TIM and TTG Chairman)

and Claus Lassen (DHL Express Turkey

CEO) participated in the ceremony

held at TIM headquarters during the

shipment of kits.

İsmail Gülle: “We have delivered the

products to their destinations in time”

İsmail Gülle (Chairman of TIM and

TTG), who delivered a speech in the

ceremony, emphasized that since the

beginning of 2020, the world was giving

a unique struggle against a global

epidemic of a size unprecedented for

a century. “We are giving a good account

both as a country and as exporters

in such a hard time in world history.

The effective management of our fight

against the virus, under the strong leadership

of our President, has enabled us

to initiate normalization steps for the

Turkish economy to reach the peak of

the epidemic sooner than expected,

as data obtained from the Ministry of

Health points out. During this process,

the product donations made to more

than 70 countries with our helping hand

has both demonstrated Turkey’s production

and supply opportunities and

capabilities to the world and become

a sign of the country’s ability to show

international solidarity. As Turkey, we

are trying to extend our hand to every

needy point in the world. Even though

international conditions are difficult

from time to time, we have been working

with our utmost strength since the

first day without stepping back from

our goals. Despite many challenges in

the global supply chain, we have restored

our confidence by delivering

products in timely manner. We believe

it will give us a great advantage in the

future and help to the brand of Turkey

reach a different point in the eyes of

overseas buyers.”

China registers Turkey’s 1st national car designs

India, Japan and South Korea are still

pending approval and expected to be

finalized in 2020, according to the consortium.

Turkey’s long journey to produce a

fully Turkish-made car came to an end

on Dec. 27 last year, as the country unveiled

its prototypes at a grand ceremony

in Gebze, near Istanbul.

President Recep Tayyip Erdoğan unveiled

the prototypes of an SUV and

sedan, both fully electric, in addition to

C-segment models. Mass production of

the SUV will begin in 2022, with the

sedan to follow. TOGG will produce

five different models – an SUV, sedan,

c-hatchback, b-SUV and b-MPV – until

2030, and own the intellectual and industrial

property rights of each.

The cost of the factory to produce the

vehicles is expected to reach 22 billion

Turkish liras ($3.7 billion). It will employ

4,323 staff, including 300 qualified

personnel. The cars, indigenous to

Turkey, will also be supported by the

government with various tax discounts

and incentives.

The Automobile Joint Venture Group

(TOGG), a consortium of five major

Turkish companies working on the

manufacture of Turkey’s first national

automobile, announced that the Chinese

patent agency had accepted its design

registration application.

TOGG’s sports utility vehicle (SUV)

and sedan designs were registered by

the Chinese Patent Authority, according

to the company’s website. The decision

follows the interior and exterior

designs of TOGG’s automobiles having

been registered by the European

Union’s Intellectual Property Office

(EUIPO) in April. The industrial property

rights provided by EUIPO will

remain valid until February 2029 – 10

years after the trademark is granted –

but could be extended upon application

by TOGG. Meanwhile, TOGG’s design

registration applications in the U.S.,

ESNEK AMBALAJ SANAYİCİLERİ DERNEĞİ

Adres : Tunus Caddesi 54/8 Kavaklıdere 06680 ANKARA

Tel : 0312 466 60 23

Fax : 0312 466 60 24

easd@ambalaj.org.tr

FLEXIBLE PACKAGING MANUFACTURERS ASSOCIATION

Adres : Tunus Caddesi 54/8 Kavaklıdere 06680 ANKARA - TURKEY

Tel : +90312 466 60 23

Fax : +90312 466 60 24

easd@ambalaj.org.tr

June

Economic Newspaper

2020 Please mention

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5

IKMIB determined to increase its export

volume in line with the normalization process

Adil Pelister, the Chairman of Istanbul Chemicals and

Chemical Products Exporters’ Association (IKMIB)


The main functions of

Istanbul Chemicals and

Chemical Products Exporters’

Association are

as follows:

Providing sectoral collaboration

Improving the export volume

of the sector in line

with the benefits of our

country

Organizing training

courses, seminars and

THE ECONOMIST

What is a consultant?


Publisher: ISTMAG Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti. Adına sahibi

H. Ferruh Işık

Responsible Editor:

Editors:

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Art sdirector:

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Ömer Faruk Görün

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LIAISON OFFICES No: 4029 BURSA / TURKEY

BURSA: Tel : (90.224) 211 4450 - 51

Fax: (90.224) 211 4481

KONYA:

PRINTED BY:

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(mehmet.soztutan@img.com.tr)

Assoc. Prof. Mehmet Ali Özbudun

Ayça Sarıoğlu

Recep Arslantaş

(recep.arslantas@img.com.tr)

Tolga Çakmaklı

(tolga.cakmakli@img.com.tr)

Ismail Özçelik

(ismail.ozcelik@img.com.tr)

meetings related with its

subject matter

Supporting its members

in the national and international

level in case of

facing any problem related

with export/trade activities

Organizing trade fairs,

arranging promotional

activities, founding laboratories

The Activities of Association:

İstanbul Magazin Grubu

İHLAS MEDIA CENTER

Merkez Mahallesi 29 Ekim Caddesi

No:11 Medya Blok Kat:1

34197 Yenibosna / İstanbul / Turkey

ISTANBUL/TURKEY

Tel: +90. 212 604 51 00

Fax: +90. 212 604 51 35

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Metin Demir

H. Ulusahin Is Mrkz. C Blok

No: 603-604-605 KONYA / TURKEY

Tel : (90.332) 238 10 71

Fax: (90.332) 238 01 74

İhlas Gazetecilik A.Ş.

Merkez Mah. 29 Ekim Cad.

İhlas Plaza No: 11/41 PK: 34197

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ISTANBUL / TURKEY

Tel: (90 212) 454 30 00

Fax (90 212) 454 34 83

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Well!!!

· Organizing national/

international meeting of

our exporters.

· Organizing national/international

trade fairs.

· Organizing meetings of

our exporters with “Buying

Missions” from different

countries of the world.

· Organizing “Trade Missions”

which are composed

of Turkish exporters

to the target markets.

· Organizing seminars/

conferences/training

courses for our members.

· Following up the recent

arrangements in international

law and informing

our members about them.

· Preparing annual reports

bout the export performance

of the sector.

· Preparing reports about

“target markets” and

“target sub-sectors”.

Major products are:

· Plastics and articles,

plastic packaging materials,

plastic kitchen materials,

melamine and urea

resins, acrylic polymer,

polyvinyl chloride, polyvinyl

acetate, polyester, etc.

· Mineral fuels, mineral

oils (gasoline, fuel oil,

naphtha, C4, motor oil,

A consultant is someone who

takes the watch off your wrist

and tells you the time.

Turkish automotive

industry ready to meet

growing demand

L.P.G.)

Soap and detergents

· Inorganic chemicals

(refined borax, boric acid,

sodium sulphate, alumina,

sodium hypochlorite,

sodium metabisulphite)

· Pharmaceutical products

and medical devices

· Organic chemicals

(benzene, acrylonitrile,

ethylene glycol, glycerin,

medical raw material.

· Dyes, pigments and

other coloring chemicals,

paints and varnishes

Essential oils and resinoids,

perfumery, cosmetics

and toiletries

· Rubber and articles

· Fertilizers (diammonium

phosphate, triple super

phosphate, azote and

phosphoric composed fertilizers)

· Others (agricultural

chemicals, textile auxiliary

chemicals -finishing

materials, fatty acids, adhesives)


Most customers have now been placed on waiting lists,

which are not likely to clear until August and September,

industry representatives said.

The stock unavailability has been an issue for the car market

since the last quarter of the previous year. The situation

worsened after the pandemic forced auto factories to suspend

production worldwide, paralyzing the entire industry.

It was only possible for factories to resume production in

May at limited capacity, which fell short of resolving the

supply problems.

Automotive production in the country slipped by 22% in

March and further plunged by 91% in April, according to

the Automotive Manufacturers Association (OSD) data.

The industry saw a production loss of some 150,000 units

over the two months. Overall, 2020 production between

January and April dropped 28% year-on-year the data

showed, with some 352,309 vehicles, including automobiles

and commercial vehicles, being manufactured in the period.

Several car brands were able to import new vehicles from

Europe, which went unsold due to a collapse in demand.

However, the practice is not likely to continue as the demand

begins to pick up in the European market as well.

Industry experts expect supply shortages to be resolved

by the end of 2020 when factories resume production at

full capacity.

Meanwhile, the short supply of new vehicles has pushed

customers to the secondary market, leading to a 10% to

15% price increase in secondhand cars. Several dealers in

the used car market reported that they have sold out despite

the high prices.

Industry representatives expect between 40,000 to 50,000

total car sales in June, depending on the supply. If estimations

are correct, this year’s figures for July will surpass

sales both in 2019 and 2018.

The attractive loan opportunities announced recently by

public lenders have significantly boosted the demand in

cars, the experts also pointed out.

Ziraat Bank, VakıfBank and Halkbank introduced loan packages

for individual and corporate customers who want to

purchase new and secondhand passenger vehicles, including

motorcycles or commercial vehicles, from contracted

companies that make them domestically.

Banks offered loans with interest rates as low as 0.49% and

a grace period of up to 12 months. The loan packages also

included secondhand car purchases.

Turkish banks and firms secure over

$6.9B international financing

Turkish banks and companies have achieved

significant success by securing nearly

$6.91 billion (TL 47 billion) in international

financing during the period when the coronavirus

pandemic has halted economic activity and

severely affected the global economic system and

financial markets.

The financing enabled the institutions to easily

overcome the financial difficulties of April and

May when debt returns are the most intense.

Turkish banks, including Akbank, Ziraat Bank,

VakıfBank, QNB Finansbank, Yapı Kredi Bank,

Türk Eximbank, Garanti BBVA and I Bank, and

confectionery giant Ülker Bisküvi secured a

syndicated loan of $6.3 billion in April and May,

marked by difficult market conditions due to

the outbreak. The banks have also managed to

secure nearly $600.6 million in non-syndicated

financing from several international organizations,

including the European Bank for Reconstruction

and Development (EBRD).

The institutions in question thus achieved a 91%

syndicated loan renewal rate in the last two

months, given the $9.93 billion syndicated loan

used in 2019.

In addition, borrowing costs during this period

were also 25 basis points lower in the dollar and

40 basis points lower in the euro than last year.

The cost of syndicated loans was “Libor + 2.25%”

in dollars and “Euribor + 2%” in euro.

Private lender Akbank was first to secure a

syndicated loan renewal, having renewed 86% of

last year’s $700 million loan by securing a $605

million syndicated one-year loan on April 1-8.

The public lender Ziraat Bank managed to renew

75% of the $1.42 billion of last year’s syndicated

loan by securing $1.06 billion on April 9.

Another public lender VakıfBank renewed 88% of

last year’s $1.09 billion by securing a $950 million

syndicated loan on April 29.

QNB Finansbank, whose syndicated loan stood at

$200 million last year, on May 14 mobilized $225

million from international lenders, posting a 128%

loan renewal rate.

‹STANBUL

Also, another private lender, Yapı Kredi, reached

an 84% loan renewal rate as it secured $870

million between May 15-27 from last year’s $1.03

billion.

Having used a $407 million syndicated loan

last year, Türk Eximbank received a syndication

loan worth $723 million on May 14-29 amid

coronavirus’ economic fallout. The institution

thus managed to post a record loan renewal rate

of 178%.

Garanti BBVA on May 20 secured a $594 million

syndicated loan, renewing 79% of last year’s $755

million. Having used a $950 million loan last

year, I Bank managed to mobilize a $792 million

syndicated loan on May 21, reaching a loan

renewal rate of 83%.

The leading biscuit maker in Turkey, Ülker

Bisküvi, overcame global market turbulence by

also securing international funding to continue

smooth operations.

It secured a total of $455 million from eight

lenders on April 2 despite market volatility. The

loan consisted of a syndicated facility of $374

million and a parallel loan of 75 million euros

($81 million) provided by the EBRD. The company,

therefore, renewed 121% of the last year’s loan.

One of Turkey’s best-known confectionery, Ülker

produces biscuits, cakes, wafers, chocolate bars

and chocolate-covered biscuits. It sells products

throughout Turkey and exports to Europe, North

America, Africa, Asia and the Middle East.

The EBRD is a major investor in Turkey. Since

2009 it has invested almost 12 billion euros in

various sectors of the country’s economy, with

almost all investments in the private sector.

In the period when global economies stalled,

five Turkish banks managed to also receive nonsyndicated

financing worth $600.6 million from

various international institutions, primarily the

EBRD.

Denizbank, QNB Finansabnk, Garanti BBVA, Yapı

Kredi and Türk Eximbank received $175 million,

$136 million, $104.6 million, $100 million and $85

million, respectively, in May.

TÜYAP FUAR VE KONGRE MERKEZ‹

TÜYAP FAIR CONVENTION AND CONGRESS CENTER

Büyükçekmece, ‹stanbul / Turkey

6

Economic Newspaper

Please mention



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June

2020

Turkish auto industry ready to fill vacuum left by China after pandemic

The Turkish automotive industry’s

strong production

performance during the

coronavirus pandemic has attracted

the attention of global companies

that are seeking to shift their

production away from China and

could mean new multimillion

investments to the sector in the

upcoming period, industry representatives

told Sabah.

The Automotive Suppliers Association

of Turkey (TAYSAD)

announced that it will kick off a

promotional campaign in Europe

to strengthen Turkey’s status as a

reliable automotive producer. The

association said the $1 million

PR campaign will promote the

Turkish auto industry’s production

capabilities to the European

auto giants. TAYSAD said they

are planning to capture up to $1

billion in investment from automakers,

which have been looking

to move production away from

China.

Alper Kanca, president of TAY-

SAD, said the promotional campaign,

which has been organized

with the Automotive Exporters

Association (OIB) and supported

by the Ministry of Trade, will

target car makers in Germany,

France and the United Kingdom.

As part of the campaign, foreign

journalists and European sector

representatives will be invited to

Turkey to advertise the industry’s

production capacity. Kanca said

they are also planning to bring together

senior sector leaders from

Turkey and Europe to discuss possible

cooperation, Kanca said.

“We want to sell goods to everyone

looking for a strong alternative

to China,” Kanca noted, adding

that the industry could receive

Leader Exporter Sector was “Automotive Industry” in May

As part of the cooperation

between the Turkish

Exporters’ Assembly (TIM)

and a Turkish private-lender

Iş Bank, exporters will be

provided a credit package

of up to $500 million (TL

3.5 billion), the head of the

TIM Ismail Gülle said.

The protocol for the loan

package was signed in a

ceremony held with the

participation of Gülle and

Iş Bank General Manager

Adnan Bali.

Within the scope of the

package, a maximum of

150,000 in dollars and

euros or TL 1 million credit

will be allocated for each

company, in order to expand

the package’s capacity to

reach more exporters.

Export Exchange Credit is

set to be offered to all TIM

member exporters with

an interest rate of 2.4%

up to $1 billion in investment as a

result of the promotional efforts.

Turkey is a major auto parts supplier,

producing some of the key

Turkish exporters to receive $500M loan package

annually in dollar loans

and 1.15% annually in euro

loans.

Turkey’s exports rose

34.3% year-on-year to

reach $9.1 billion in the

first 23 days of June, Gülle

also said in the meeting.

In May, Turkey’s exports

dropped 40.9% to $10

billion on a yearly basis,

due to the COVID-19’s

effects on the economy.

In April, credits used for

exports reached TL 196

billion ($28.6 billion),

Gülle noted.

Emphasizing that

collaborating with Iş Bank

is important in providing

confidence to exporters,

Gülle said: “It is our

greatest hope that similar

collaborations will continue

increasingly. Especially

in the last two years, we

have seen both volumetric

and proportional increases

in the loans of the banking

sector for exporters and the

interest and relevance of

the sector in exports pleases

us.”

While the export loans of

components of the world’s highest

quality brands with annual exports

worth around $30 billion.

Atacan Güner, the general manager

of Assan Hanil, a leading

supplier for the automotive sector,

told Sabah that Turkish firms have

been given an important opportunity

to fill the vacuum in the global

markets left by China due to the

pandemic.

“It will be a great success for us

even if we manage to capture 10%

of Chinese share in the European

market. That is why TAYSAD’s

initiative carries crucial importance,”

Güner said.

Meanwhile, auto factories in Turkey

experienced an increase in

the number of orders from clients

in Europe and the United States

since February, said Celal Bektaş,

the general manager of Bektaş

Otomotiv.

banks were at the level

of TL 116 billion in April

2018, the value of those

loans increased by 69% and

reached TL 196 billion in

April this year.

Also speaking on the details

of the package, Bali said

that exports which have a

critical role in the growth of

the country’s economy are

also of great importance in

the way out of this difficult

pandemic period.

“We are implementing

many initiatives in order

to reduce the effects of the

Bektaş said companies that have

previously worked exclusively

with Chinese producers are turning

to Turkey as an alternative in

an attempt to secure their supply

chains.

“There are no better manufacturers

than us in the market today.

Our production capacity, fast order

fulfillment and logistic advantage

strengthen our hand against

our competitors,” he added.

Can Yücel, the chairman of Dostel

Machinery, said the industry

is expecting European markets

to stabilize and reopen after the

pandemic to increase auto part exports.

He added that only the German

market has shown signs of reopening

in the industry as of now.

“Our Expectations from Turkish Exporters are Beyond the Normal”

pandemic on employment,

production, trade and

payment systems and ensure

the continuity of economic

activity. In addition to our

ongoing support packages

for the economy, we offer

the maturity and payment

options for every need for

export financing with the

protocol we signed with

TIM ” he said, highlighting

that as part of the protocol,

the bank kept its interest

rates at the lowest possible

level to support the

country’s exporters.

“We think that the lowinterest

rates we apply in

export foreign currency

loans are critical not only

for our exporters but also

for all segments of the

economy,” the bank’s

general manager added.

İKMİB,dünyanın dört bir

yanında kozmetik

sektörünün yanında

Nearly all of Turkey’s tourism

facilities to reopen in July


“In Europe, there is no country

that better implemented this kind

of a process than Turkey,” Ersoy

said.

Foreign tourists from certain

countries, including those from

Germany, will be allowed into

the country as flights are beginning

to gradually resume. “When

foreign visitors come, they will

this process is to resume air traffic

to all countries, according to

the minister.

“We are hoping to increase air

traffic in July,” he said, adding

the process of opening air traffic

for most countries would be completed

in August.

“We have sent letters to at least

60 countries that provide the

most tourists to Turkey. We have

with their own observations.

The “healthy tourism certificate”

program launched jointly

by several ministries, including

the Culture and Tourism Ministry

and the Health Ministry, aims

to convince travelers that despite

the pandemic, Turkey’s beaches

and historic treasures will be safe

to visit this year, with rigorous

checks on airlines, local trans-

COSMOPROF ASIA

11-13 Kasım 2020

Hong Kong / Ç.H.C.

BEAUTY WORLD ME

23-25 Kasım 2020

Dubai / B.A.E.

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2021

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Dış Ticaret Kompleksi, A Blok Çobançeşme Mevkii, Sanayi Cad. 34197

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be health-checked, and body temperatures

will be measured at the

airports. If there is an unusual situation,

tourists will be taken for a

PCR (polymerase chain reaction)

test,” Ersoy said.

These measurements will start in

some of Turkey’s leading areas in

terms of touristic attractions, including

in the southern resort city

of Antalya and the resort towns

of Bodrum and Dalaman, as well

as western Izmir province and the

airports in Istanbul.

The country’s main priority in

informed them of Turkey’s tourism

certification program and

our enhanced hospital infrastructure,”

he added.

The minister noted that they have

invited the ambassadors of those

60 countries to Antalya on June

19, along with media representatives

who are currently in Turkey.

“We want to show how the program

works in place starting from

the airports to the facilities, shopping

malls and our hospital infrastructure,”

Ersoy said, adding

that they will report accordingly

port and hotels and utmost safety

guidelines for places of accommodation.

The program has 132 criteria,

including ensuring that hygiene

regulations are followed and social

distancing is practiced. Staff

members are also to be trained in

measures to prevent the spread of

infection.

The government has also published

an overview of the hospitals

available in areas popular

among tourists and lists their capacities.

June

2020


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Economic Newspaper

Please mention


7

Turkey’s central bank pledges measures

to support post-pandemic recovery


“Thus, we aimed to minimize the longterm

effects of the temporary pandemic on

production and employment,” Uysal noted.

“(With steps taken) we aimed to support

financial stability and the post-pandemic

recovery process by providing the financial

system and the real sector with the liquidity

they need under appropriate conditions,” he

added.

The governor noted that the measures

aimed at overcoming this period with

minimal damage by supporting production

and financial stability in the economy

have supported the liquidity and credit

conditions of the financial sector, and the

money transfer mechanism has maintained

its effectiveness.

“In the coming period, we will continue to

take rapidly the decisions that our country

and our economy will need and implement

the decisions that are taken effectively,”

Uysal said. To limit the negative effects

of coronavirus-related developments, it is

important that the financial markets, credit

channels and cash flow of firms continue

to operate in an uninterrupted and healthy

manner, Uysal said.

Measures to backstop economy

The bank has taken multiple measures to

stimulate and backstop the economy and

government finances in the face of the

coronavirus pandemic.

Uysal said they have taken action to support

the liquidity in the Government Domestic

Debt Securities (GDDS) market. He stressed

the aim was to deepen the capital markets

by incorporating asset- and mortgagebacked

securities into the collateral pool to

preserve the market depth of capital markets

and to diversify the liquidity opportunities

available to financial institutions.

Among others, the bank earlier this month

announced it would reallocate TL 20 billion

($2.93 billion) of the limit of Turkish lira

rediscount credit facility as advance loans

against investment commitment for more

effective utilization to support investments

in select critical sectors, in line with

government efforts to reduce the country’s

dependence on imports.

Uysal said that the aim of this step was

to encourage investments that increase

productivity, reduce imports and support

exports, reduce external dependence and

the problem of the current account deficit

and support sustainable growth.

Murat Uysal Central Bank of the

Republic of Turkey

The financial support under the relief

package the government announced in

March to cushion the economic fallout from

the outbreak has exceeded TL 280 billion

(nearly $41 billion), Treasury and Finance

Minister Berat Albayrak recently said. With

the multiplier effect, the size of the bailout

package has hit over TL 600 billion, he said.

Broad, powerful set of tools

The central bank has a broad and powerful

set of tools to minimize the negative effects

of the pandemic, the governor said.

“In this period, we will continue to

determine our monetary stance to ensure

the continuity of the decline in inflation and

use all the tools we have with a data-driven

approach for price stability and financial

stability purposes,” Uysal said.

“As we have always stressed, price stability

contributes to sustainable growth by

reducing uncertainties and supporting the

growth potential of the economy, while

healthy and inclusive growth strengthens

the sustainability of price stability.”

The bank last month delivered the ninth

consecutive rate cut to counter the economic

downturn brought on by the outbreak. It cut

its benchmark one-week repo rate to 8.25%

from 8.75%. Thus, the bank has cut its key

policy rate by 1,575 basis points since July

last year in a muscular bid to stimulate the

economy. On the inflation side, it climbed

more than expected to 11.39% year-on-year

in May, according to the Turkish Statistical

Institute (TurkStat) data. May’s annual

inflation was up from 10.94% in April.

Month-on-month, consumer prices rose

1.36% in May.

The bank has also executed a record bondbuying

stimulus as part of quantitativeeasing

measures. It has bought more than

TL 50 billion of bonds since the end of

March, shortly after the first coronavirus

case in the country was announced. Those

purchases include some TL 23 billion from

the Unemployment Insurance Fund.

The share of government debt among its

assets exceeded 10% last week, according

to official data. The bank holds some TL

75.6 billion of government debt as of June

8, up from TL 19 billion at the end of 2019.

The bank has set the bond purchase limit at

10% of its assets, up from 5%, but the debt

from the Unemployment Insurance Fund is

not included in that quota.

The government has tapped the insurance

fund to provide support for citizens who

have lost work hours or were laid off,

through methods such as unemployment

and short-labor pay.

President Recep Tayyip Erdoğan last week

said that since March, more than 3 million

people had benefited from the short-labor

pay, which provides additional wages

to employees whose work hours are cut

short. He said around TL 5 billion had been

disbursed.

At the end of February, the Unemployment

Fund had TL 131.6 billion, a large part of

which consisted of Treasury bonds.

Turkey’s textile, automotive businesses

expect quick start and recovery

Following a mandatory yet brief break due to the

coronavirus outbreak, Turkish factories in western

Kocaeli and Sakarya provinces – leading industrial

cities of the country, started operating at full speed,

with new investments and factory openings on the

way thanks to increasing orders.

Especially automotive and textile industries, which

are considered chief players in the Turkish economy,

started their production even faster than the

pre-coronavirus period as of June 1 when the country

lifted almost all of the measures as the spread

of the virus was declared under control and a new

phase of normalization has begun.

Mustafa Gültepe, CEO of the Talu Tekstil located

in the first Organized Industrial Zone (OIZ) in

Sakarya, who is also the chairman of the Istanbul

Textile and Apparel Exporters Association (ITKIB)

said that they started June fast, as the company is

receiving high numbers of orders from Europe.

Textile and apparel were one of the sectors most

affected by the pandemic that hammered businesses

worldwide. Hitting Europe and the U.S. hard after

emerging in China, the outbreak shuttered nearly all

stores and eventually caused a difficult process for

Turkish textile manufacturers and exporters.

However, the textile manufacturers underwent a

quick revival and now foresee an even quicker recovery

after the shock they experienced, sector representatives

said.

Talu Tekstil is currently working again at full production

after its factories produced nothing but

medical masks during the month of April.

“The demands have increased significantly with the

opening of stores in Europe. Our capacities are also

increasing rapidly,” Gültepe said.

The company opened its third factory in Adapazarı

last year to keep up with increasing orders and is

now planning to move its factory to a newly established

giant factory with a closed area of 20,000

square meters (65,617 square feet) in central Turkey

at the end of the month. Its production capacity

is planned to increase by 30% after moving to the

new factory.

“Our investments will continue to increase,”

Gültepe said.

The company, which strictly follows all the rules set

out by the Ministry of Health, has already changed

the working order and reorganized its dining halls

accordingly with social distancing rules while every

staff member is required to wear face masks and

have their temperatures taken regularly.

Produce to export The company sells its entire production

abroad and were sending products to 155

countries before the outbreak. Talu Tekstil, which

was manufacturing approximately 1 million products

a day for global companies before the virus, is

working with the target of producing at these levels

again in August.

Stating that they provide employment for 2,500

people, Gültepe noted, “As industrialists, we are

ready to do whatever we can with the support of

the state.”

He added that Turkey stands out as one the most

powerful alternatives to supply chains and with this

challenging process it has even “strengthened its

solid supplier position.”

Capacity high in automotive

Assan Hanil Automotive Industry and Trade Inc.,

established with the partnership of Kibar Holding

and South Korean Seoyon E-Hwa that resumed production

on April 20, is also continuing to produce

at high levels and increased its capacity utilization

rates up to 70% in a short time.

Atacan Güner, the company’s general manager, said

that the capacity utilization rates are increasing daily,

and “the sector is expecting 90-95% levels in

September.”

The company operates five plants; three of which

are located in Kocaeli, one in northwestern Bursa

and the other in central Aksaray; and produces for

brands including Hyundai, Ford, Mercedes, Toyota,

Karsan, Isuzu and Honda.

The companies that receive products from Assan

Hanil which has an annual 190 million euro ($214.2

million) turnover, are also among the largest exporters

and have large markets in Europe. Thus,

90% of the company’s turnover comes from indirect

exports. Saying that the main acceleration in

the sector will be achieved with the opening of the

European market, Güner said: “We expect the market

to return to 70-75% sales pace in June and its

pre-coronavirus levels in three to four months.”

Güner also said that the company’s initiatives for

investment abroad also continue uninterrupted despite

the virus and having its main target in western

Europe.

“Our search for investments continues regarding

Germany, Czechia and Poland,” he said, noting that

“they plan to buy at least 50% shares of a company

with an investment of 40 million euros.”

Stating that they are recovering rapidly although

the sector is the most affected by this crisis after the

textile and aviation industries, Güner explained that

the credit support given by the public banks to the

automotive sector is also very important.

Predicting that this step will be reflected in the sector

very quickly, Güner said: “The automotive (sector)

is the locomotive of the exports. All kinds of

support to be given here are also very important for

the protection of employment. We expect the sales

to double with the support in question.”

Turkey’s three largest state Lenders announced that

they will extend a new loan incentive scheme with

reduced rates to invigorate the transition to normalization

and revive social life, as economic activity

steps up following a slowdown due to the coronavirus

pandemic.

Ziraat Bank, VakıfBank and Halkbank are beginning

to offer four new loan packages, including

mortgages for new houses, loans for vehicle purchases,

locally manufactured goods and holiday expenses

at annual interest rates running below inflation.

The move was later joined by the state lenders’

participation banks.

Turkey only market in Europe to record

rise in car sales in first 5 months

Turkey surpassed European countries and became

the only market that has managed to increase auto

sales from January through May.

The automotive sector stands among the industries

hit the hardest by the coronavirus pandemic as lockdowns

closed car dealerships and brought a halt to

manufacturing and sales.

The outbreak has brought major losses in the European

market, while it also impacted Turkey’s auto

sales. However, since Turkey reported its first coronavirus

case later compared to Europe and due to

steps taken to counter the outbreak, Turkey’s car

sales were less affected.

According to European Auto Industry Association

(ACEA) data, car sales in the European Union, Britain

and European Free Trade Association (EFTA)

countries slumped by 42.8% from January to May

this year and stood at nearly 3.97 million units following

three months of unprecedented falls across

the region, with most markets seeing double-digit

declines. Some 6.94 million units were sold in the

same period of last year.

As for Turkey, sales jumped 20% year-on-year in

January-May, according to Automotive Distributors

Association data (ODD).

Croatia led the way, reporting the biggest drop in

the said period with 55.8%, followed by a 54.2%

drop in Spain and a 51.4% decline in the U.K., the

data showed.

The contraction of the German market was slightly

less severe, with registrations down 35% over the

first five months. So far this year, car registrations

decreased by 50.4% in Italy, 48.5% in France and

35.7% in Belgium.

Sharpest drop in U.K.

As for May, European passenger car sales slumped

by 56.8% year-on-year to 623,812 units but the

drop, although still very severe, was not as sharp

as in the previous month because of an easing of

restrictions imposed to contain the pandemic. The

same month in 2019 saw 1.44 million vehicles being

sold.

The drop was less pronounced than a 78.3% plunge

in April.

Sales of new cars in Britain tumbled 89% from last

year in May, only slightly less negative than April’s

record 97% collapse, as car dealerships remained

shuttered by the government’s COVID-19 lockdown.

The U.K. registered only 20,247 new units, representing

the weakest May for sales since 1952,

the Society of Motor Manufacturers and Traders

(SMMT) said.

The possibility that Britain’s transition out of the

EU ends in December with no new trade deal is also

likely to weigh on carmakers, some of whom have

highly integrated supply chains with the continent.

Sales recorded double-digit declines in all EU markets,

with Croatia, Portugal and Spain reporting the

biggest drops of 76.2%, 74.7% and 72.7%, respectively.

In Germany, just over 168,000 cars were registered

last month, according to the country’s Federal Motor

Transport Authority, down 49.5% compared

with May 2019 and following a 37.7% drop in

March and 61.1% in April.

The decline in Italy, France and Belgium stood at

49.6%, 50.3% and 32%, respectively.

Among carmakers, Volkswagen led the way as it

sold 145,195 units in May, followed by PSA Group

with 91,146 units and Renault Group with 62,230

units.

Sales in Turkey up 20%

Turkey’s passenger car and light commercial vehicle

sales jumped 20% year-on-year in January-May

and totaled 183,095 units, the ODD data showed.

While passenger-car sales surged 21.7% on an annual

basis to 146,528 in the January-May period,

the country saw 36,567 light commercial vehicle

sales, rising 13.9% during the same period.

Turkey ranked seventh in Europe in terms of passenger

car sales, leaving behind 24 European countries.

Demand had a serious drop in the second half of

March when the outbreak started affecting social

life and the commercial environment after the country

reported its first coronavirus case on March 11.

Automakers started gradually shutting down factories

and halting production on March 20 in a move

that was first planned to last two weeks but ended

up lasting through most of April.

Top international automakers – including Ford,

Honda, Hyundai, Mercedes, Renault and Toyota

– have factories in Turkey. The facilities started

gradually resuming operations on April 13, with all

having reopened by May 11.

In May, the automotive market narrowed 2.4%

compared to the same month last year due to the

coronavirus pandemic, hitting 32,235 vehicles.

Passenger car sales fell 7.6% to 25,073, and LCV

sales soared 21.6% year-on-year to 7,162 in May.

Passenger car sales enabled Turkey to rank sixth in

Europe.

Demand for automobiles in Turkey has steadily

risen since early June after three public lenders,

namely Ziraat Bank, VakıfBank and Halkbank, introduced

low-interest loan packages for individual

and corporate customers who want to purchase new

and secondhand passenger vehicles and following

the easing of strict lockdown measures, but supply

shortages are forcing potential buyers to walk away

empty-handed.

Car dealerships across the country have reported

that domestic demand, which has been deferred

since the last quarter of 2019, began to revive after

the country started to reopen, but car stocks are still

limited due to the global supply chain disruptions

caused by the coronavirus pandemic.

EconomicNewspaper

June

8 Please mention

2020


Turkey may be New Leader of Supply Chain in Trade for Libya and Africa

Murtaza Karanfil, Head of Foreign Economic Relations Board (DEIK) Turkey-Libya Business Council, underlined that countries that restarted production swiftly by combatting

the COVID-19 outbreak will play a key role post-pandemic. Karanfil suggested that Turkey should improve its ability to respond quickly to demand and be ready for post-pandemic

trade. Praising Turkey’s steps to mitigate economic fallout and to stem the spread of the coronavirus. If we add the production strategy aiming to respond quickly to orders, to

those accurate steps, we can further expand our market share and we form the supply chain in our favor. Turkey’s market share in Libya can reach 30%, up from its current level

of 13%, Karanfil stressed, adding that Turkey should also utilize its geopolitic position. The new normal will significantly change the supply chain and Turkey can grab the 25%

market share of China and Italy in Libya. Thus, Turkey can increase its exports to Libya to $10 billion in medium-term while enhancing its influence in African market.

2 nd Exhibition for Cosmetics, Beauty, Hair

Home Care, Private Label, Packaging, Ingredients

ICC - Istanbul Congress Center - Taksim, Istanbul - Turkey

www.beauty-istanbul.com

Tel: +90 212 2229060 | +90 533 4843030 | info@beauty-istanbul.com

Organizer

June

EconomicNewspaper

2020 Please mention

ww.img.com.tr



9

Nobel Ilac Has Been the only

Pharmaceutical Company Among

Turkey’s 100 Most Valuable Brands

Brand Finance, an international

and independent brand valuation

and strategy consulting company,

has completed its report titled

“Turkey’s Most Valuable Brands –

Turkey 100” for the year 2020.

The list included eight new brands

from different businesses this year,

with Nobel İlaç was listed as the

only company selected within the

healthcare industry.

Hakan Sahin, the General Manager

of Nobel İlaç, commented on the

company’s success as follows:

“Being listed as the only pharmaceutical

company in Turkey’s 100

most valuable brands has been a

great honor to the entire Nobel

family. Nobel, a global player with

an experience of more than half a

century, was founded in 1964 as

a fully domestic capital company.

Since the very first day of our

business operations, we have been

confidently proceeding on our path

with the vision of providing reliable

and accessible products in

every corner of the world for human

health. Nobel İlaç, a Turkish

brand, has gained a considerable

position on the international platform

over the years with the potential

derived from this vision. So

much so that, our sales force transformation

is being taught in classes

as a case study in the Harvard

Business School MBA program

today.

We are adding new assets to our

repertoire of international achievements

on a daily basis with the goal

of improving the quality of life

with the belief that “health is worth

everything”. As an international

pharmaceutical company with 100

percent domestic capital, we bring

insignificant export figures every

year. Today Nobel operates with

a total of five manufacturing facilities,

including three in Turkey

and one in each of Kazakhstan and

Uzbekistan. We export qualified

products manufactured in line with

international standards to approximately

50 countries. Together with

our Swiss organization, which we

established within the last year, we

have been performing promotion

and sales activities in 20 countries

with our own organizations and

brands. As Turkey’s top pharma

export company, we are proud to

create resources that benefit our

country’s net foreign exchange

deficit.”

Adil Pelister, the Chairman

of Istanbul Chemicals and

Chemical Products Exporters’

Association (IKMIB)

10

Economic Newspaper

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June

2020

A COMPANY WHICH CROWNED ITS SUCCESS WITH MANY REWARDS: CIFTSAN ETIKET

Hakan Yolgun, General Manager of

Çiftsan Etiket (Çiftsan Label), underlines

the value of the sector by

stating: “Properly Chosen Packaging,

Labels Produced with a Beautiful

and Impressive Design, are the

Leading Reasons of Product Preference”.

We listened the strong steps of

Çiftsan Etiket for our readers, which

has kept the unique secret of success

and difference, without compromising

corporate culture since its establishment.

Could you inform us about your

company?

Our company, which adopts the highest

level of customer satisfaction and service

quality as a principle, is a family

company founded in 2007 to produce

self-adhesive and non-adhesive labels

and packaging at European standards.

Our facility, which has a closed area

of 4,000 m2, is capable of producing

approximately 6,000,000 m2 of labels

per year by using high-tech machinery

and trained expert staff on all kinds of

compact and laminated materials such

as screen printing, letterpress, flexo,

digital, embossing, hot-gilding and

cold-gilding. Our company also produces

films, clichés, digital clichés, HD

stereotype, cold gilding and silkscreen

silk.

What about your service areas?

Label and Packaging is the identity of a

product. We are a team that is aware of

the importance of 3-5 seconds that the

product needs to affect the consumer on

the shelf and we work for it. The role

of label and packaging is indisputable

in the success story of a product. Properly

chosen packaging, labels produced

with a beautiful and impressive design

are the main reasons for choosing the

product. With this awareness, we support

our customers in many sectors,

from design to production of labels

and packaging. With the investments

we made at the beginning of the year,

we had the opportunity to produce very

low numbers of opp and body sleeve

productions at very affordable costs. I

think this situation has serious advantages

for companies using these materials.

Now our customers can buy either

1 kg or tons of material from us.

We already had a production park that

can make many printing techniques to

all kinds of materials with our existing

machinery. We have expanded this

range with the latest investments.

It is known that you follow technological

innovations in packaging and

labels closely. Could you give us a little

more detailed information about

your service quality technically?

With our existing machinery, we have

the capacity to produce very high-quality

products at reasonable costs, regardless

of number. We have 2 digital

printing machines which are the latest

technology printing machines in the

world. Machines with the necessary

equipment to produce very high-quality

labels at low costs, especially for the

cosmetics industry. The main reason

we prefer these machines is that labels

and packaging of trending brands in the

world can be produced on these machines.

Together with this and our flexo

machines, we have 7 printing machines

in total. Apart from this, we carry out

almost all pre-press preparations in our

own structure in order to keep our costs

to a minimum. In short, I can say that

we produce quality not inexpensively

but in accordance with it.

You are praised about your services

in both national and international

competitions and in this context, you

are deemed worthy of many awards.

Can you tell us about the awards you

have received so far?

Since 2013, we have been participating

in competitions with the labels and

packages we produce at national and

international organizations every year.

Our 5 labels were awarded at the latest

World Label Awards. In addition, we

have a total of 94 awards in 7 years, including

national and international.

Do you design labels? Design and

pre-printing preparation, printing

and post-printing, equipment and

team are undoubtedly an integral

part of a process in the production of

quality labels. What is the difference

of Çiftsan Etiket in this regard?

We have a very strong design and prepress

preparation team. The most critical

part of the process is to make the

right designs in accordance with the

specified printing techniques in the projects

created, to make the pre-printing

preparations meticulously and deliver

them to the production. Of course, the

necessary technological investment and

technical infrastructure are required to

ensure that this process is carried out

correctly. Since our establishment, we

have gathered the pre-press preparation

unit under the roof of Çiftsan Etiket.

With the investment of ctp and automation

software, we have increased the

efficiency of the personnel and kept the

quality and the correct operation of the

process under control.

We work with the industry’s leading

suppliers of printing and post-printing

equipment and products. It is inevitable

to work with companies that have

standards in order to carry out the quality

in determined standards. I think that

one of the most important features that

takes us to a different point is that we

do not compromise on our solution

partners, our service, principles, and

quality policies.

It must be very proud of your company

to have registered your success

with numerous awards in its service

area. Your reputation and brand value

in the industry increases day by

day. What is the big secret behind

this success?

We are a young team with big goals

and walking towards these goals. I can

say that doing our job with passion on

the first day and working hard to show

continuous development has an important

share in this success. Of course,

we should not forget our friends that

we are solution partners. They give us

important chances to succeed in many

award-winning projects. I would like to

thank them from here through you.

The Covid-19 epidemic has affected

your service as well as any other

industry. In this sense, what kind of

strategy did you develop as Çiftsan

Etiket? Will there be changes or extra

precautions in your plan for the

upcoming period?

I think we witnessed a history. We owe

gratitude to our heroic healthcare professionals

working devotedly in this

challenging process of national struggle.

We extend our condolences to, and

condole with their relatives. I extend

the deep sympathy of our citizens who

lost their lives and to their family.

Unfortunately, the epidemic process

brought along many negativities all

over the world. Although we are among

the countries that are least affected by

this, serious disturbance has occurred

to us and our staff like everyone else.

The proliferation of international trade

and transportation accelerates this process,

of course. However, we think

that it is possible to reverse the current

situation at the same speed. Many restrictions

have been introduced to stop

spreading, but continuing production

is inevitable. They should not stop the

production of the general and personal

hygiene, health, food, pharmaceutical

industry and the supply chain serving

these sectors. At this point, we gave our

employees the necessary briefings. We

increased internal hygiene and disinfection

procedures. While some of our

staff continue to work in their homes

with remote access, we have provided

the staff working in the production department

with our own means, without

using public transport. We reduced the

contact within the company to a minimum.

No Covid-19 case has been detected

in any of our staff so far.

Of course, in this epidemic process,

there was a serious demand increase in

production due to the needs. Although

it is thought that some of our staff

working from home may cause a disruption

in the business process, I can

say that we have successfully managed

this process with the technological and

automation software we made in the

past so far.

How do you predict your industry

will be affected by the epidemic process?

What are your suggestions for

the sector in this regard?

In the first place, as in many sectors, I

cannot say that there was no uneasiness

in us. However, I can say that we were

affected from this process at the minimum

level with the measures we took

as a result of the predictions we made.

By making our necessary raw material

stocks, we have taken this process

under control with the measures we

have taken in the factory. I am one of

the optimistic ones who think that the

label and packaging industry will get

stronger from this process. The important

thing here is to respond to the demands

coming with the right planning

and strong production in the fastest

and highest quality way. Procurement

of raw materials and stock required for

this is done immediately when the pandemic

process has just started, all the

measures we have taken in the factory

have caused us to respond quickly to

the demands of our solution partners.

We have provided important support

in this regard, especially to the leading

brands of the country producing

hygiene products and cologne. Thus,

we have acted as quickly as possible

without any negative returns to the

incoming requests and continued our

production 24/7 without disrupting the

deadlines. I think that all of us should

act together in coordination to make

this situation stable in the sector. As

Çiftsan Etiket, I can say that we are always

ready for this.

Finally, what advantages and differences

does Çiftsan Etiket offer to its

customers? How would you summarize

the most important features that

distinguish you from your competitors?

We are a reliable, innovative and devotedly

hard-working company. With

all the printing techniques we have

done today and the success awards

these prints have in front of global

brands in the world, I think that our

company shows where it stands in the

sector. Çiftsan Etiket is the pioneer of

many innovations from labels with the

‘Braille’ alphabet for visually impaired

people, to special visible security inks

with thermochromic and UV and Multi-Color

Screen Printing. It contains

many success stories within 14 years.

Our company culture is at the beginning

of these stories being born on this

roof. I think our most important feature

that distinguishes us is that we have a

culture. I really care about this situation.

What would you like to add?

First of all, I would like to thank you

for reserving us in your magazine and

valuing our success. I hope our country

will get stronger from this difficult process.

I declare that we are ready to do

whatever task we have on this matter

and wish you a healthy life.

June

2020


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Economic Newspaper

Please mention


11

Turkey estimated to play greater role in post-pandemic global economy

Turkey’s role in the economy

is set to grow in the wake of the

coronavirus pandemic, said a key

EU lawmaker.

“The proven track record of Turkey

in this process will allow the

country to play a much greater

role in the coming post-pandemic

economy,” Ryszard Czarnecki,

member of the European Parliament

and founding chair of the

EU-Turkey Friendship Group,

told Anadolu Agency (AA) in an

exclusive interview.

Czarnecki said relations between

the EU and Turkey date back

decades to the country’s application

for an association with the

then-European Economic Community

(EEC) in 1959, followed

by the Association Agreement

in 1963. He cited the words of

then-European Commission President

Walter Hallstein calling the

agreement “an event of great political

significance” and calling

“Turkey is part of Europe.”

“Despite being one of the first

countries to produce an association

with the European Community,

Turkey was unable to move

swiftly in the direction of further

integration” in the half-century

since, said Czarnecki, a member

of Poland’s ruling Law and Justice

Party (PiS).

“Numerous complex political developments

on the side of Turkey

as well as the EU” were responsible

for this, he explained.

‘EU, Turkey should reassess

interests’ Czarnecki said geopolitical

developments in 2020

have shifted the interests of both

Turkey and the EU, and those

interests should be reassessed

and reworked by both sides. The

EU-Turkey Friendship Group

chair said the main topics of discussion

between Turkey and the

EU will be visa liberalization and

modernizing the customs union.

Turkey has pressed EU officials

on the visa issue especially since

March 2016, saying it was promised

this under a deal to stem the

flow of irregular migrants in the

face of a crisis.

Turkish officials and business

leaders have also long argued that

updating the outdated 1995 customs

union with the EU would

benefit the economies of both

The Turkish private sector’s

outstanding loans from abroad

fell further in April compared to

the end of last year, the Central

Bank of the Republic of Turkey

(CBRT) announced.

Long-term debt hit $173.6 billion

as of April, falling $7.4 billion

from end-2019, with 41.9%

held by financial institutions.

Some 62% of Turkish private

sector long-term debt was in

U.S. dollars, 33.5% in euros,

2.8% in Turkish liras and 1.7%

in other currencies.

The private sector’s short-term

sides.

Post-pandemic economy

Czarnecki stressed many things

will be redefined and reevaluated

when humanity wins the fight

against COVID-19.

“It is clear that governments, corporations

and citizens will factor

in health concerns and trade interruptions

in a variety of ways,” he

added. Czarnecki said Turkey can

benefit from an EU-led European

recovery program, focusing on rebuilding

economies to make them

more resilient.

“This includes rethinking economic,

political and social proximity

politics,” he added.

Pointing to the importance of

Turkey’s geopolitical advantage,

Czarnecki said: “Such geographical

proximity gives Turkey the

ability to deliver to Europe much

faster compared to East Asian

economies. Plus, by allowing

their manufacturing to take place

in Turkey, European producers

can enjoy low-cost site visits.”

“Although Turkey’s production

costs are higher compared to

some Far Eastern countries, it offers

a favorable exchange rate,”

he added.

“With its proximity to the world’s

most sophisticated single market,

its high-level caliber workforce

and business-savvy entrepreneurs,

this is Turkey’s big chance,”

loans – debt that must be paid

in the next 12 months – also fell

$895 million to $8.1 billion in

the same period.

Financial institutions held 76%

of the short-term loans, while

24% consisted of liabilities of

non-financial institutions.

he said. EU-Turkey Friendship

Group Czarnecki said friendly

relations between his home country,

Poland, and Turkey date back

to Ottoman times. “We in Poland

never forget that after the (1795)

division of Poland, the Ottoman

Empire always recognized the existence

of Poland and kept a seat

for the ambassador of Poland at

the Sublime Porte,” he said.

“I also would like to underline

that our former Prime Minister

Jaroslaw Kaczynski, the current

president of our ruling party, always

supported the accession of

Turkey to the European Union,”

he added.

He said as the new chairman

of the European Parliament’s

EU-Turkey Friendship Group, he

will be looking for ways to rekindle

exchanges between Turkey

and the EU under these new circumstances.

“It will be in our mutual interest

to try to bridge differences, learn

from each other and look on what

we can agree about,” he added.

Czarnecki said: “The friendship

group will try to deal with these

issues by bringing together civil

society from all sides, focusing on

culture and sports,” adding: “We

hope that we can contribute to improving

the future relations of the

EU and Turkey.”

Foreign loan burden on Turkish private sector decreases

“Regarding the currency composition

of the total short-term

loans, 38.8% consists of U.S.

dollars, 34.3% consists of euros,

25.6% consists of Turkish liras,

and 1.3% consists of other currencies,”

the CBRT said.

DOES, THE FIRST AND ONLY ANTIMICROBIAL

HOSPITAL, YEDITEPE UNIVERSITY KOŞUYOLU

HOSPITAL, WHICH WAS CONSTRUCTED

WITH A SPECIAL MOLECULE, WHICH WAS

COMPLETELY DEVELOPED LOCALLY, WAS

APPLIED TO ALL MATERIALS, FINISH “THE

FATAL NOSOCOMIAL INFECTION”?

Yeditepe University Koşuyolu Hospital has the feature of Turkey’s

first antimicrobial hospital. Thanks to the patented special

molecule developed at Yeditepe University Laboratories, zero

hospital infections are targeted.

Bedrettin Dalan, Founder and Honorary President of Yeditepe

University, said, “Research shows that approximately fifty percent

of deaths after surgery are caused by hospital germ. We focused

on solving this problem. We’ve completely developed a local

and nationally produced molecule. We applied this harmless

germ-killing boron based molecule from door handles to floor

coverings, from electrical outlets to wall paints, and to our furniture

and equipment”, and he announced the war against the Fatal

Nosocomial Infection at the opening ceremony of the hospital.

Stating that Yeditepe University Koşuyolu Hospital is a guide

hospital in the international arena as well, Dalan said, “We have

applied the boron-based molecule, which we have developed in

Yeditepe University Laboratories, which is the first in the world,

that kills microbes and does not harm any human cells, to our

furniture and equipment from door handles to flooring, electrical

sockets and wall paints. Pointing out that hospitals should have

minimum furniture and decoration to reduce the microbe to zero,

Dalan said, “In none of our hospitals you can see details such as

flashy waiting rooms, carved armchairs, carpet upholstery and

velvet curtains. Because these details contain the germ in the

hospital and trigger the infection. Since we do not want the microbe

in our hospitals, you cannot see anything unnecessary in

our hospital. I know that all hospitals will guide our hospitals in

the future.”

Declaring that they designed all corners of the hospital as concave

or concave for free of germs and easy cleaning, Dalan said,

“In Turkey, however, it has a washable beds in each hospital’s

first Yeditepe University. After the patient leaves the room, the

bed is washed with water at high temperature, disinfected with

a special substance, and the new patient comes to his clean bed.

We have invested 30 Million TL for this disinfection and microbe

breaking process only. In addition, both hospitals have antimicrobial

filters for ventilation.”

Made in Turkey June 2020

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