Merve YİĞİTCAN – ISTANBUL
The erosion in working capitals and the bottleneck in access to finance continue to disrupt investments. In the January-July period of this year, the ratio of canceled investments to total investments reached the highest level of the last 5 years. According to the investment incentive certificate statistics announced by the Ministry of Industry and Technology, a total of 1507 investment certificates were canceled in the 7 months of 2022, while the ratio of cancellations to the total investment incentive certificates announced in the said period increased to 23.4 percent. It is feared that the further increase in the bottleneck in financing will lead to a decrease in new investments and an increase in cancellations of incentive certificates.
Amount of cancellations in 7 months 14.5 billion TL
While the Ministry of Industry and Technology publishes the investment incentive certificate statistics monthly, it also shares the list of canceled investment incentive certificates with the public. In case the investment has not been started using the investment incentive certificate or the state support has not been utilized using the certificate, the investment incentive certificate of the investors is cancelled. When we look at the 7-month period of 2022, it is seen that the cancellation investment incentive certificates have reached the highest level of the last 5 years on the basis of number and rate. In this respect, statistics reveal the weakening of the investment muscles of the industry.
According to the information WORLD compiled from the data of the Ministry of Industry and Technology, the total number of investment incentive certificates canceled in the January-July 2022 period was 1507. While the total investment amount of the canceled investments in 7 months was 14 billion 575 million TL, the employment promise of the related investments was 59 thousand 671. While the total number of investment incentive certificates announced in the mentioned 7-month period was 6 thousand 439, the total fixed investment amount was 257.1 billion TL and the employment promise was 184 thousand 159. In the relevant period, the ratio of canceled investments to total investment incentive certificates was calculated as 23.4 percent.
In the pandemic year, the rate was 18 percent
So, what kind of performance was observed in the canceled investment incentive certificates in the 5-year period covering the years 2017-2021? Looking at the statistics, when the ratio of the cancellations of investment incentive certificates to the total investment incentive certificates is examined, the highest rate closest to the January-July 2022 period was found in 2020, which is known as the pandemic year, with 18 percent. Looking back over the years, a total of 12,665 investment incentive certificates were issued in 2021, while only 748 investment incentive certificates were cancelled. The ratio of cancellations to total investment incentive certificates was 5 percent. Looking at 2020, an intensification is seen in cancellations. While 10,384 investment incentive certificates were issued in the said year, 1915 investment incentive certificates were also cancelled. The cancellation rate was calculated as 18 percent in 2020.
Before the pandemic hurricane, a total of 5,598 investment incentive certificates were issued in 2019, while the number of canceled investment incentive certificates was 429. The rate of cancellations showed a balanced outlook with 7 percent. Despite the total investment incentive certificates of 5,700 in 2018, it was decided to cancel 576 investment incentive certificates. The ratio of cancellations to total investments was 10 percent. When we look at the year 2017, when we finally started to analyze the data, the total number of investment incentive certificates was 7 thousand 196, and the number of canceled investment incentive certificates was recorded as 429. In this period, the rate of cancellations was calculated as 7 percent.
Sanko and Nursan Denizcilik are among those whose investment incentive certificates were revoked.
When we look at the statistics of investment incentive certificates, which were canceled in the 7-month period of this year, we also focused on the cancellations with the highest investment amount. Accordingly, a cancellation arrangement was made for the incentive certificate with a fixed investment amount of 972.5 million TL, dated January 21, 2022, regarding cotton yarn production to be realized by Sanko Tekstil in Gaziantep. Again, Nursan Denizcilik’s incentive certificate with a fixed investment amount of 406.19 million TL, document dated August 21, 2015, was canceled in this period. Among the canceled is the document issued for the 423.7 million TL investment of Akmercan Adıyaman Natural Gas Distribution with the document dated 12 June 2021. While the investment incentive certificate issued for the fixed investment amount of 213.5 million TL, dated January 23, 2013, of the foreign capital Solarvan Solar Energy and Equipment company, was canceled in the said period, SESA Ambalaj’s fixed investment amount of 177.6 million TL in İzmir was realized. The investment incentive certificate issued for investment is also noteworthy among those that have been cancelled. Çakan RR İnşaat, document dated 5 June 2016 Tourism While the investment incentive certificate, which was also issued for the hotel investment, which Sanayi ve Ticaret LTD had committed to implement in Aydın with an investment incentive of 174.5 million TL, was cancelled, while the investment incentive certificate of 155 million TL belonging to Blue World Transport, dated 18 June 2015, and 18 August 2015. Incentive certificates for investments worth 155 million TL belonging to Green World Transport, with the certificate dated, are among those that have been cancelled.