Turkey Financial News

Posted by meb at September 14th, 2009

Following the end of extended tax reductions for motor vehicles on Sept. 30, the government is expecting to keep the lights on at the Turkish automotive industry with a different version of incentives.

Speaking to the Anatolia news agency, officials from the Finance Ministry said the government could introduce incentives for the replacement of old vehicles with new ones. Having initially introduced tax cuts on motor vehicles on March 16 for a period of three months, the government decided to extend the terms for another three months on June 15. The private consumption tax (ÖTV) on motor vehicles with engines of up to 1,600 cubic centimeters was set at 27 percent, while the tax on commercial vehicles was changed to 3 percent. Extended for a second time, the tax incentives are due to expire at the end of September.

Noting that they have studied examples of incentives for old vehicles in foreign markets, the Finance Ministry officials said the government could consider introducing such incentives in the coming months, expecting to keep the recovery going in the auto industry. Encouraged by recent tax cuts, the Turkish auto sector has enjoyed a remarkable increase in sales. (more…)

Posted by meb at September 14th, 2009

“The latest indices also suggest that the end of crisis is not far away for Turkey,” he said. Underlining the importance of structural reforms in the Turkish economy, de Geus asserted that the country will achieve swift growth if the necessary reforms are implemented on time.

“I believe that Turkey will resume a fast track of economic growth next year if it keeps up with structural reforms,” he stated.

Pointing out that the financial sector in Turkey is in a far better position than that of many other developed markets amidst problems due to the crisis, de Geus said the country’s banking industry owes this success to measures implemented seven years ago, noting, “While the world’s giant banks have sustained heavy losses and some have even collapsed, Turkish banks have managed to keep troubles at bay.” He said the Turkish state did not face extra expenditures thanks to (more…)

Posted by meb at September 14th, 2009

US President Barack Obama’s administration has notified Congress of a possible $7.8 billion sale of Patriot PAC-3 antimissile batteries and related equipment to Turkey, the only NATO ally bordering Iran.

The sale would include 13 Patriot “fire units,” 72 Patriot Advanced Capability-3 missiles and a range of associated hardware for ground-based air defense, the Pentagon’s Defense Security Cooperation Agency said in a notice made public on Friday, reported the Reuters news agency.

It estimated the cost at $7.8 billion, which would be one of the biggest US government-to-government arms sales in years and would mark the return of Turkey as a major US arms buyer.

Turkey would use the PAC-3 guided missiles to boost its missile defense capability, strengthen its homeland defense and deter regional threats, the defense agency said. (more…)

Posted by meb at September 10th, 2009

Turkey has been the most affected by the economic crisis, according to Germany-based Dekabank, which investigated the performances of 31 countries during the global financial crisis.

According to the report released earlier this week, China, India and Poland were the only ones that managed to turn the crisis into an opportunity. The remaining 28 economies contracted significantly.

Turkey has been affected by the crisis the most, according to the research. The country experienced the biggest decline in gross national product, or GNP, with 14.2 percent. Russia followed Turkey to rank second, with an 11 percent contraction in its GNP.

The impact of the global turmoil was also undeniable among the European Union countries. Among the EU members, Germany ranked at the top in economic contractions, followed by Hungary. (more…)

Posted by meb at September 10th, 2009

Explaining the main points of the record-breaking tax fines against Doğan Media Group, Soner Gedik, the group’s chief financial officer, says the levy has no legal basis. The levy rests upon the claim that share transfers are not exempt from value added tax, but the law clearly states the opposite, Gedik says. Meanwhile, a brokerage says the tax decision has hit investor confidence in Turkey

Evaluating the record 3.755 billion Turkish Liras ($2.5 billion) tax levy imposed on Doğan Media Group, Chief Financial Officer Soner Gedik said the decision has no legal ground. Gedik’s arguments against the fine, the second against the group this year, were also supported by a prominent tax expert.

Speaking to daily Vatan, Gedik answered questions about the fine, emphasizing that transfer of shares is a practice exempt from value added tax, or VAT, and the share transfer between Doğan Media Group, or DMG, companies, created no extra revenue for the group. Gedik also estimated that in the past four years, share transfers surpassing $128 billion have been conducted in Turkey. “Nearly three-fourths of this amount was conducted as common stock transfer [as was the case in DMG],” he said. “After this [practice] against us, I guess all such sales will be regarded as cloudy. If the interpretation of the Finance Ministry official is correct, all these sales will be inspected.” (more…)

Posted by meb at September 10th, 2009

Turkish economy shrank by 7 pc in second quarter of 2009 in constant prices, showed figures by Turkey’s statistic agency TÜİK.

TÜİK made public on Thursday the gross domestic product figures for Q2 of 2009.

Turkey’s Q2 GDP was realised as 23,513 million Turkish liras (1 USD equals 1.49 TL) in constant prices, marking a 7 pc a year-on-year decline. (more…)

Posted by meb at September 10th, 2009

Shares in Doğan Yayın Holding, the media subsidiary of the Doğan Group, fell 10 percent on Wednesday in the first trading session of the İstanbul Stock Exchange (İMKB), following Tuesday’s 20 percent decline on news of a $2.53 billion fine.
Investors are now jumping ship from the media mogul for a second straight day after it was hit with a record fine for unpaid taxes. Doğan Yayın traded down 10.7 percent at TL 1.17. Hürriyet Gazetecilik shares tumbled 10.4 percent while Doğan Holding shares plummeted by 8.3 percent. The main share index was off 1 percent.

Doğan Yayın Holding, the Doğan Group’s publication wing, which runs newspapers such as Hürriyet and Milliyet, numerous magazines and TV stations, was hit by a TL 3.76 billion ($2.53 billion) fine on Tuesday. The Finance Ministry said they levied the fine on the company for evading taxes during a time period covering 2005, 2006 and 2007. (more…)

Posted by meb at September 8th, 2009

The industrial production will show signs of significant recovery in the final quarter of the year, according to Industry and Trade Minister Nihat Ergün. ‘But no one should expect a rapid and speculative rally. What’s important is to take healthy steps and enable a stable growth.’ DHA photo.

The pace of decline in Turkish industrial output slowed in July for the fifth consecutive month as the deepest contraction on record eased.

Industrial output fell 9.2 percent from a year ago, following a decline of 10.3 percent in June, the Ankara-based Turkish Statistical Institute, or TurkStat, said on its Web site Tuesday. Output was expected to decrease 9 percent, according to the median estimate of 12 economists polled by Bloomberg.

“It’s clear that the contraction will continue in the third quarter of the year,” said Özgur Altuğ, an economist at BGC Partners in Istanbul. (more…)