Turkey Financial News

Posted by meb at August 20th, 2008

New incentives for encouraging job creation and helping Turkey’s poorest regions could be implemented by as early as 2009.

In addition to the already announced 5 percent cut in payroll taxes, the government is also planning to cover training costs and help companies with investment and borrowing. There will also be assistance for textiles companies that want to relocate their production to Turkey’s east and southeast. (more…)

Posted by meb at July 11th, 2008

Turkey saw a 31.8 percent increase in the production of vehicles in the first six months of 2008 compared to the same period last year.

According to a statement released by the Automotive Industry Association (OSD) yesterday, 708,962 vehicles were produced between January and June, while 537,955 had been produced in the same period last year.

A total of 113,168 automobiles were produced last month, indicating a 1.6 percent decrease compared with the same month last year. Total production, however, increased by 12.9 percent in the first six months of the year over the same period last year. (more…)

Posted by meb at July 10th, 2008

Turkish Environment and Forestry Minister Veysel Eroğlu said on Wednesday that since last year the Turkish private sector had submitted applications as part of the law on water use rights agreements to construct 1,461 hydroelectric power plants to produce 65 billion kilowatt hours (kWh) of energy, which would take 50 years if the state was the sole investor. Upon completion these investments will generate an annual income of $58 billion for Turkey, the minister noted.

Speaking at a groundbreaking ceremony in Ankara for 61 hydroelectric power plants to be built by the State Waterworks Authority (DSİ) and private sector investors, Eroğlu expressed excitement at seeing such a big step toward saving Turkey’s energy future. “We will transfer the ownership of energy investments worth $25 billion from the central management budget to the private sector,” he said. “We needed at least 50-60 years to realize the production of 20,000 megawatts of energy. I’m guessing that those private companies who have applied for the construction of hydroelectric power plants can complete 80 percent of the projects in 4-5 years.” (more…)

Posted by meb at July 10th, 2008

Via/Port, boasting the title of Europe’s largest outlet center, seeks to offer its customers the ultimate outdoor shopping experience, with its grand opening set for July 29 in Kurtköy.

The center aims to allow shoppers to enjoy outdoor, outlet-style shopping, while also providing youngsters with a wealth of distractions.

Via/Port General Coordinator Muzaffer Gülöz said the project, which was carried out by the Bayraktar construction company, features a “real outlet center” as part of its shopping opportunities. Gülöz explained that the contracts signed by stores which will be opening at Via/Port specify that 75 percent of the products will be season final sale items. (more…)

Posted by meb at July 9th, 2008

The monthly Industrial Production Index increased by 2.4 percent in May of 2008 compared to the same month of 2007, according to figures released by the Turkish Statistical Institute (TURKSTAT) on Tuesday.

The 2.4 percent of year-on-year growth revealed a sharp decrease compared to the 6.3 percent growth recorded in April.

Analysts expect the slower growth trend to continue for the remainder of the year amid a general economic slowdown, but do not expect the data to change expectations of imminent interest rate hikes.

A Reuters poll of 14 economists had given a median forecast of 2.55 percent for industrial output growth, with forecasts ranging from 0.3 percent to 5 percent growth.

“More than half of this growth was thanks to the 20.7 percent year-on-year increase in automotive output which followed strong export performance in the sector,” Reuters quoted JP Morgan economist Yarkin Cebeci.

“The slowdown in growth is in line with our view that following the strong performance in the first quarter economic activity should lose speed in the remainder of the year,” he said.

I expect full-year gross domestic product growth of 3.8 percent and the central bank will raise interest rates by 50 basis points at its monthly meeting next week, Cebeci also said.

In the sub sectors level of industry, the mining sector index increased by 2.6 percent, the manufacturing industry sector index increased 1.9 percent, and the electricity, gas and water index rose 6.6 percent in May, 2008 compared with same month of the previous year.

The five-month average for 2008 saw the total industry sector index rise by 5.8 percent, the mining sector by 6.4 percent, the manufacturing industry sector increase by 5.4 percent, while the electricity, gas and water sector increased by 8.6 percent compared to the previous year.

The highest rates of change in the Manufacture Industry Production Index for May 2008 compared to May 2007 were realized in the manufacture of motor vehicles, trailers and semi-trailers with 20.7 percent, and the manufacture of electrical machinery at by 12.4 percent, and the manufacture of paper and paper products at 11.9 percent.

Economists had expected May industrial output data to show a sharp slowdown in growth due to global credit problems and domestic political uncertainty. Interest rate increases have also put the brakes on economic growth.
source: Hurriyet Daily

Posted by meb at July 2nd, 2008

The Turkish steel market is valuable for ArcelorMittal, Lakshmi Mittal, the company’s chief executive officer told business daily Referans Monday.

ArcelorMittal is aware of the Turkish steel sector’s growth potential, “therefore, we have no plans to sell the shares we own in Erdemir,” the chairman of the global steel giant told the Istanbul-based newspaper. ArcelorMittal had upped its stake in Ereğli Demir Çelik, Turkey’s biggest steelmaker also known as Erdemir, to slightly 24.9 percent from 13.62 percent in mid June. (more…)

Posted by meb at July 1st, 2008

With a revival in the agriculture sector, Turkey has achieved a spectacular growth rate of 6.6 percent in the first quarter, far greater than estimated; however, economy experts believe this figure will not suffice to become more optimistic for the remaining quarters of the year.
Economists stress that the impact of political instability and uncertainty, a US-oriented sub-prime mortgage crisis that has lasted longer than anticipated and the central bank’s increased interest rates will become more visible through the end of the year, further noting that it is too early to revise year-end expectations. (more…)

Posted by meb at June 28th, 2008

“As TPAO … we have started talks with Shell and several other oil companies for a partnership,” Reuters quoted TPAO General Manager Mehmet Uysal as saying. A Shell spokesman declined immediate comment. Officials had previously said the deals, which are aimed at lifting output at Iraq’s largest producing fields by a combined 500,000 barrels a day, would be announced on June 30.

Iraq wants to ramp up production by 500,000 barrels per day from the current average production of 2.5 million barrels per day (bpd), a level about equal to before the United States-led invasion in March 2003. (more…)