Mahmut Asmalı, President of the Independent Industrialists’ and Businessmen’s Association (MUSIAD), made a statement regarding the economic policies of the government.
Speaking to Dünya newspaper, Asmalı said that industrialists are tired of talking about interest rates and used the following statements:
“Therefore, our esteemed President said in a TV program the other day, ‘We need to reduce the interest rate to a single digit’. Let it go down to 9 percent in October and November. Producers do not like an environment of uncertainty. We say, “Let’s get stability, let’s continue with that stability.” When we asked about the accelerated brain drain from Turkey, especially software developers, Asmalı said, “Due to the decrease in the value of money in high inflation, the workforce goes abroad not only in software but also in many sectors. For example, I am a construction worker. Mold makers in the sector say, ‘Let me go abroad, I will earn the money I earn there in Turkey in a shorter time.’ Many sectors are transferring workforce.”
“CREDIT TAPES ARE COMPLETELY CLOSED”
Stating that the Central Bank kept the rate of credit growth under control within the scope of macroprudential measures taken within the scope of the fight against inflation, Asmalı stated that this situation restrained the appetite of private banks to lend. Asmalı said:
“Although banks have slightly lowered commercial loan rates within the scope of macro-prudential measures, this time they have completely turned off the credit taps. They make loans available much lower than customers demand. Of course, this sluggish economic activity in the credit markets is also curbing.”
President of the AKP, Recep Tayyip Erdogan, in his last speech on his party’s interest policy, said, “As long as this brother of yours is in this post, interest will continue to decrease with each passing day, each passing week, each month. No one should advise us on this matter.”
Expressing that access to long-term credit is also a problem, Asmalı continued:
“The Central Bank finances commercial banks on a weekly basis. Because the Central Bank is doing this with such short-term funding, the real sector cannot access long-term financing and does not want to engage in long-term projects. Long-term financing opportunities are more needed. Unfortunately, Turkey “The economy has to experience system bottlenecks based on credit/interest at regular intervals. This shows how much Turkey needs a partnership-based financial system.”
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