Büyükekşi, Chairman of TIM: Reduction of the interest rates should reduce the costs of credit

Mehmet Büyükekşi, the Chairman of the Turkish Exporters' Assembly (TIM), stated that the decision on the reduction of the interest rates taken by the Central Bank cheered the exporters.

Büyükekşi remarked: “We expect that the period of the reduction in the interest rates envisaged lately by the Central Bank will continue in the future. We wish that this reduction will revive the investments having a static course recently within the borders of our country and that it will enhance our exportation”.   

Mehmet Büyükekşi, the Chairman of the Turkish Exporters' Assembly (TIM), made a statement to the press regarding the decision on the reduction of the interest rates taken by the Central Bank today. Büyükekşi expressed in his statement that the period of the reduction in the interest rates cheered the exporters, but that the costs of commercial credits still continued to be at high levels.

Büyükekşi, the Chairman of TIM, made following statements:

•          We expect that the period of the reduction in the interest rates envisaged lately by the Central Bank of the Republic of Turkey (CBRT) will continue in the future.

•           We wish that the reduction of the interest rates will revive the investments having a static course recently within the borders of our country and that it will enhance our exportation.

•           Although the interest rates have been reduced in the recent period, the interest rates of the commercial credits continue to be at high levels. As exporters, we expect that these rates will decrease to reasonable levels.

The Central Bank of the Republic of Turkey trimmed the upper band of the interest rate corridor at each meeting held since March. At the meeting held today, the upper band was trimmed by 50 basis points.

On June 4, we conveyed our demands consisting of 10 items to our Government in the 23rd Ordinary General Assembly Meeting held with the participation of our Honorable President of the Republic. We also mentioned these items during our visit to our Prime Minister last week. 'Cost-effective financing' is the main item in the agenda. In this sense, we think that the reduction of the interest rates in such a period when the financing costs are at high levels is quite significant for the revival of the investments having a static course recently. We anticipate that the production and the exportation will gain momentum together with the revival of the investments in our country and that the growth will possess a healthier structure by this means”.

Büyükekşi remarked that the reduction of the interest rates was pleasing for the exporters, and he said: “Together with the reduction of the upper band of the interest rate corridor, we also observe a limited decrease in the weighted average costs of funding applied by the CBRT. However, the financing costs of the producers and the exporters do not regress at desirable rates. As exporters, we pay great attention to the regression of the interest rates of the commercial credits, which have recently been at the level of 15%, to more reasonable levels. In an environment shaped by lower interest rates, our companies will give impetus to R&D expenses, and our exporters will make more active and brave investments. It is quite important for our companies to have favorable financing conditions for the permanent and continuous increase of our exportation. 
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