Automotive Exports November 2021

Turkey to allocate $500M restructuring
credit to Northern Cyprus
A$500 million (TL 4.32 billion) line of credit
to the Turkish Republic of Northern Cyprus
(TRNC) was approved by Turkey according
to a decree published in the Official
Gazette.
The funds will be used in the restructuring
of the public and financial sectors in the
TRNC, as well as other fields included
within the scope of the deal.
The TRNC will make interest payments for
the provided credit per the six-month U.S.
dollar LIBOR (London Interbank Offered
Rate) published on Reuters’ LIBOR page.
The interest payments will begin six
months after the signing of the credit and
payments will be made every six-month
basis.
The capital payment, meanwhile, will begin
36 months after the signing of the credit
and will be paid back every six months in
14 installments.
The two countries in March signed an
“investment-oriented” agreement for
financial cooperation.
“Our main goal in this agreement is
investments. Our aim is to contribute to
the formation of a self-sufficient TRNC
economy by strengthening the areas
with a high multiplier effect in the TRNC.
With this agreement, we allocated TL 2.5
billion ($336.83 million) of new resources
to the TRNC this year. We anticipate total
support of TL 3.25 billion with the amount
transferred from last year,” Turkish Vice
President Fuat Oktay said during a joint
press conference with TRNC Prime Minister
Ersan Saner. The agreement covers
investments in important infrastructures,
including the health system, main road
projects and the establishment of a new
industrial zone in the TRNC, to which
Turkey will provide support.
Confidence in
Turkey’s key
sectors improves
Turkey’s sectoral confidence index improved on a monthly basis in June, according to data
the country’s statistical authority, Turkish Statistical Institute (TurkStat), showed.
Among all sub-indices, the services sector index posted the largest rise with 6.2% to 108.5
this month thanks to the easing of lockdown restrictions after mid-May as coronavirus cases
and fatalities continue to ebb nationwide.
The retail trade confidence index climbed 4.8% month-on-month to 105.7, mainly driven by
business activity-sales expectation over the next three months.
Calculated from the monthly survey, results are evaluated within the range of 0-200, with
sectoral confidence indices signaling an optimistic outlook when the value is above 100,
and a pessimistic outlook when it is below 100.
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