Erdogan Dismisses two Deputy FinMins, Senior Treasury Officials

LOCAL NEWS

• Erdogan dismisses two deputy finance ministers (Sakir Ercan Gul & Mehmet Hamdi Yildirim) and two treasury senior officials ( Abdullah Bayazit who was in charge of public financing and Ahmet Yalcin Yalcinkaya who was in charge of economic programs and research) overnight ahead of today’s CBRT meeting.
  • Mahmut Gurcan & Yunis Elitas were appointed as the new Deputin FinMins
• Turkey extends tax advantage on lira deposit accounts until end of March 2022, according to decree in Official Gazette.
  • Decree extends tax relief on income gained from lira-denominated investment funds, bonds and Islamic debt issued by banks for another 3 months
• EU says Turkey’s accession talks remain frozen following the council of Europe meeting yesterday. Notes Turkey’s foreign policy colliding with EU security policy RE Libya.
  • Turkey was commended for its role harbouring refugees and the CoE welcomed de-escalations in the East Med but warned Turkey must stop all threats towards Greece & Cyprus, including the reopening of Varosha
• Turkish Construction firms have postponed many major projects and slowed others due to the lira’s rapid depreciation which has sent construction costs soaring.
  • The industry accounts for 5% of Turkey’s economic output and may cut jobs and shrink this quarter as costs jump over 42%. Industry chair notes three main risks: Rising costs, deteriorating balance sheets and delays in projects

Data:

• 1100GMT: one week Repo exp at 14.00% vs 15.00% prior
• 1130GMT: House price index y/y oct, 35.51% prior
• 1130GMT: House price index m/m oct, 3.17% prior