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Companies Struggle to Access Finance; Trading Concludes Early Ahead of Eid Holiday

TURKEY
  • Dunya report that companies are finding it increasingly difficult to access credit, with sector representatives warning that if liquidity problems are not resolved, bankruptcies and employment losses will increase. Some private banks have reduced loan maturities from 12 months to 3-6 months, as they do not want to take risks in lending loans to SMEs due to the uncertainty surrounding the elections.
  • Meanwhile, Ekonomi write that the deterioration in the loan deposit yield spread due to regulations and decreasing yields of CPI-indexed bonds has adversely affected the net profit of the banking sector in Q1-2023. According to reports from brokerage houses, the net profit of the banking sector may decrease by 40% compared to Q4-2022, they say.
  • Note the Borsa Istanbul exchange closes early today ahead of the Eid holiday on Friday. Markets will remain shut tomorrow.

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