Turkey Financial News

Posted by meb at October 30th, 2008

Representatives of the International Monetary Fund met with Turkey’s Mass Housing Administration, or TOKİ, for the first time Monday, to find out the challenges faced by Turkey’s housing industry.

The IMF committee, which included Rachel Van Elkan, who will become IMF chief to Turkey, and IMF representative Davide Lombardo, met withTOKİ chief Erdoğan Bayraktar and other TOKİ officers for 1.5 hours.

“Does Turkey confront problems in the financing of the houses?” asked the IMF committee during the meeting. They also wanted to know whether the provision of mass housing could provide a model for other countries.

The IMF committee was informed about the institutional structure and major activities of TOKİ, while TOKİ officers gave a visual presentation on the administration’s areas of operation. (more…)

Posted by meb at October 30th, 2008

Bacuon Yapex 2008, organized by Akdeniz Tanıtım in coordination with Messe Münih, the German Fairs Institution, is to open its doors tomorrow in the Antalya Expo Center. Faruk Nafiz Özak, minister of public works and settlement, will deliver the inaugural speech of the fair, which will remain open to the public until Nov. 2.

Generally held towards the end of the tourism season, Bacuon Yapex 2008 has some 300 firms participating from across Turkey. The fair is expected to attract some 30,000 domestic and international visitors.

Held around five main themes, which include Construction Technology, New Products in the Construction sector, Bathroom Technology, Window and Door Technology and Renovation and Restoration, Bacuon Yapex 2008 will also host many different activities such as the Turk-Romania Business Meeting, the 2nd Tourism and Architecture Symposium, the Occupational Information Application or Archipoint and Publicity Meeting for BAU 2009. (more…)

Posted by meb at October 29th, 2008

Despite the several economic crises it has encountered, the Turkish Republic’s economy has grown 46.5-fold in the 85 years since its inception.

Turkey’s gross domestic product, or GDP, was $16.8 billion, in today’s money, when the Republic was founded in 1923. By the end of this year it is expected to reach $779.4 billion.

In 1923, per capita national income was $45.3, which would amount to $1,344 today. The figure is now likely to reach $10,913, an increase in over 800 percent in 85 years.

Over the period, the country’s population rose more than five-fold, from nearly 12.5 million to more than 71.4 million people. The average growth rate over this time was 4.62 percent.

Growth scenarios (more…)

Posted by meb at October 29th, 2008

The Turkish automotive sector, which has been feeling the effects of the current crisis in global markets, is hoping to escape the turmoil with the help of a reduction in the Private Consumption Tax (ÖTV) that the government plans to institute in the near future.

The auto sector has fallen on hard times. Many car dealers have had to revise their targets for 2008. The sector longs for the kind of situation it found itself in at the end of last year, when car sales were up.

Vedat Gizer, president of Çukurova’s Authorized Car Dealers Union (YODER), said yesterday that the auto sector was struggling with stagnation and that they were looking forward to the tax reduction. “We had been seeing a boom, especially in the last four months of 2007, but now car sales are about to cease totally,” he explained. He underlined that with the recent increase in foreign exchange rates the sales of imported cars have declined dramatically and many companies will not be able meet their targets for 2008. “People will think twice before purchasing a car because of the uncertainty in the economy and the increase in interest rates,” he said, emphasizing that most consumers take out loans when buying a car. He noted that the forthcoming reduction in the ÖTV, recently announced by Finance Minister Kemal Unakıtan, would help automotive companies reach their targets. (more…)

Posted by meb at October 29th, 2008

Despite the ongoing global financial crisis, the Hilton Family hotel chain is planning to add an additional 40 hotels to its Turkish portfolio, which currently has only seven hotels in Turkey.

Citing a lack of international hotels providing world-class service in the Turkish hotel sector, senior Hilton executives unveiled the group’s plans yesterday morning during a breakfast at the Hilton İstanbul. Hilton executives, including Mike Collini, vice president of development for Northern Europe, Patrick Fitzgibbon, senior vice president of development for Europe and Africa, and Didier Martin, vice president for Eastern Europe and Turkey, drove home the message that Turkey has the brightest future for hotel growth in Europe at this time. (more…)

Posted by meb at October 29th, 2008

The crisis that started in the United States and has spread globally has started to affect Turkey as well. In these difficult times, shopkeepers and tradesmen are looking to stay afloat, which may mean letting go of some of their real estate holdings.

These conditions provide opportunities for both investors and people who need real estate, commented Retürk Real Estate Board President Aşkın Çınar. “There are a lot of people who sell during a crisis. Anyone who is about to hit bottom sells,” said Çınar.

Çınar, using the expression “crisis equals opportunity,” said now is a good investment time for people looking for real estate because the biggest opportunities take place during a crisis. Real estate prices drop when there is a crisis and there is room for prices in Istanbul to drop even lower, said Çınar. You might never find opportunities like this again. (more…)

Posted by meb at October 29th, 2008

Turkish lira currency rose against the U.S dollar and traded at 1.57 levels on Tuesday as Asian markets recovered and demand for the U.S. currency eased in Turkey.

The Turkish lira gained more than 4 percent compared to its Monday’s close at 1.65 levels.

The finalization of a foreign bank’s dollar demand helped the lira to recover against the dollar, Barbaros Ozuyilmaz, bond desk manager in Istanbul based ABank told hurriyet.com.tr.

“A foreign bank’s U.S. dollar demand, which pushed the currency up to 1.70 levels from 1.50 levels against lira, finalized on Friday. I see this as the reason for the dollar’s easing against the lira,” he said.

The 1.70 level is important and a new sell off will be seen if this level is reached again, Ozuyilmaz added. (more…)

Posted by meb at October 28th, 2008

Istanbul and Ankara have been listed among the top 50 emerging cities in a recent study by MasterCard Worldwide, making Turkey the only European country other than Russia to be represented with more than one city.

According to the Worldwide Centers of Commerce: Emerging Markets Index, which was released on Oct. 22, Istanbul’s position in 15th place suggests that Turkey’s financial capital “is a formidable center of commerce deserving of attention.” Just like Russia, the study noted, Turkey has a large population, which is growing rapidly. Turkey’s capital city of Ankara ranked 50th.

Russia, an emerging economy dependent largely on its vast energy resources, was the best represented European nation overall, with three cities in the region’s top 10 and a total of four cities in the overall index. Bolstered by positive economic readings on a city level, Moscow ranked just above Istanbul at 14th overall, while St. Petersburg was 41st, followed by 59th Yekaterinburg and 62nd Novosibirsk. (more…)