Turkey Financial News

Posted by meb at February 9th, 2009

Number of house loans used has increased 50 percent in the past two months, according to Garanti Mortgage Vice President Burak Ali Göçer.

With interest and price down, credit up 50 pct Although the Turkish real estate sector was hit by stagnation in the global economic crisis, some activity has started. The drop in house prices reached 30 percent and shock reductions in loan interest rates occurred in January. These two factors have apparently activated the potential buyer who was waiting for such an opportunity. The number of housing credits used has risen 50 percent when compared to the last two months of 2008. (more…)

Posted by meb at February 9th, 2009

Turkey’s banking regulator said bank owners with businesses in other industries hurt by the global financial crisis should decide whether to sell their stakes in the lenders.

The businessmen should study the profitability of their companies and settle on a plan to maximize revenues “as soon as possible,” Tevfik Bilgin, chief of the Banking Regulation and Supervision Agency, or BDDK, said Thursday.

“They should dismiss the idea that they can wait, thinking that the value of their banks may increase,” he said.

“Business plans should be implemented right away. If they dither, then their situation could get worse.” (more…)

Posted by meb at January 8th, 2009

Turkey’s Eximbank will deliver $12.9 billion in financial support to exporters in 2009: $6.9 billion in cash loans and $6 billion as insurance for other transactions, said Kürşad Tüzmen, minister of state for foreign trade.

At a news conference in Ankara yesterday with Turk Eximbank General Manager Ahmet Kılıçoğlu and Turkish Exporters’ Assembly (TİM) President Mehmet Büyükekşi, the minister disclosed details about Eximbank’s projected activities for the new year. He said Eximbank planned to increase its total support by 37 percent in 2009 over that of the previous year. If Turkey reaches its export target of $109 billion by the end of 2009, Eximbank’s financial backing would account for only 11.5 percent of total exports. (more…)

Posted by meb at January 7th, 2009

2008 Annual interest rates USD – EUR
January 7,2 – 6,3
February 7,1 – 6,3
March 7,0 – 6,5
April 7,0 – 6,6
May 7,1 – 6,7
June 7,3 – 6,8
July 7,5 – 7,1
August 7,5 – 7,1
September 9,4 – 7,3
October 11,3 – 8,7
November 11,5 – 9,5

source: Central Bank of Turkey

Posted by meb at January 2nd, 2009

IMF delegation to begin talks in Ankara on Jan. 8- Turkish ecomin
The IMF delegation will start official talks with Turkish government on Jan. 8 in Ankara, Economy Minister Mehmet Simsek said Friday.

An International Monetary Fund (IMF) delegation will visit Turkey next week to lay the groundwork for a new stand-by arrangement, the Anatolian Agency reported earlier on Friday citing officials.

The delegation headed by Turkey Mission Chief Rachel van Elkan is expected to prepare a report on Turkey’s financial need and present it to the board of executives, AA said. (more…)

Posted by meb at December 23rd, 2008

Islamic banking in Turkey dates back to 1985, when the government, led by the late Turgut Özal, passed legislation for interest-free banking. The first “participation bank” was Albaraka Türk, established in February 1985, followed by Faisal Finans two months later.

Islamic banks offer customers profit-sharing proceeds instead of interest, and charge borrowers participation-sharing, instead of loan interest.

They operate two types of accounts to collect funds from depositors. One is a “current account” that does not provide any type of return, but offers conventional services such as cheque books, money transfers and documentary collection. (more…)

Posted by meb at December 4th, 2008

Turkish lender Finansbank has secured a $470 million syndicated loan from international markets for use in export financing, the bank said on Thursday.

Finansbank, whose parent company is National Bank of Greece, said 20 banks from 12 countries were participating in the syndication.

The bank said the syndication, which was the first the bank has coordinated itself, consisted of two tranches – 226 million euros ($285 million) and $182.5 million.

The cost of the one-year loan was LIBOR plus 2 percent.

Shares in Finansbank were up 1.4 percent at 4.46 lira after the announcement, underperforming the main share index which was 2 percent higher. (more…)

Posted by meb at November 29th, 2008

The French Development Agency (AFD) signed an agreement with Denizbank yesterday in İstanbul to provide 80 million euros in long-term credit to support municipal projects around the country.

Under the structure of the agreement, Denizbank will have to repay the credit within 12 years, and disbursements to various municipal governments need to be made over a four-year period. The financing is to go towards water, waste transportation and sanitation projects. The criteria on which financing will be provided will have a heavy focus on ecological components.

Significantly, the project specifies that a minimum of 60 percent of the 80 million euro credit will be allocated to smaller municipalities, which are often overlooked by financing projects. The agreement further stipulates that the maximum amount that is to be spent per project is 5 million euros, so as to maximize the number of projects that are to benefit. (more…)