CHP Leader Proposes Reforms If It Assumed Power; CBRT Incentivises New Deposit Scheme

LOCAL NEWS

• CHP leader Kilicdaroglu announces 7-article economic reform package that would be introduced if his party came to power – urging support for early elections.
  • 1) establishing trust in the economy 2) establish regulatory & supervisory institution to protect citizens’ interests 3) price stabilization committee to be abolished
  • 4) fight mismanagement of public finance 5) greater govt transparency 6) reform govt tenders offering passenger guarantees at airport/bridge projects paid in USD
  • 7) establish strategic planning organization to make 100-year plans with qualified staff
• Turkey’s central bank says in written statement that it will provide support to incentivize conversion of FX deposits into FX-linked lira accounts encouraged by government to bolster TRY.
  • CBRT says it will make up for losses incurred by holders of those lira deposits if the lira’s decline against hard currencies exceed interest rates promised by banks
• CHP’s Kilicdaroglu criticizes Erdogan’s new measures to halt dollarization, calling it a “hidden interest rate hike” as the Treasury will cover any depreciation of TRY deposits with tax collections.
• Says the AKP has provided guarantees with cash that does not exist in the Treasury.
  • Deva’s Babacan (Erdogan’s former FinMin) also criticized the move as a stealth rate hike – saying this management (the AKP) cannot survive