Erdogan Joins the Fight on Inflation, Calls for Teamwork

LOCAL NEWS

• Overnight Erdogan said: he sees FY GDP at >8% 2: will cut corporate tax to 20% in 2023 from 25% 3) fight against high inflation requires team play 4) real sector is reducing FX short positions 5) govt is developing policies to make TRY more attractive 6) financing activities that widen the CA deficit should be trimmed
• Official Gazette says Banks will be required to specify criteria for classification of non-performing loans in new revision of loan classification rules.
  • Lenders need to evaluate payback capacity of debtor before restructuring loans. Decree specifies some accounting rules for properties, commodities and securities taken over by lenders in exchange for receivables
• 60% of Turkish voters believe the AKP govt & presidential system is unsuccessful in new poll. 20.7% voted in favour of the AKP, while 47.9% said the economy and unemployment were the biggest current issues.
  • 61.4% were in favour of early elections while 22.4% were not. 49.7% said Erdogan would not win a round of presidential elections, 24.9% said he would remain president
• Economist warns that delivery of $3.5bn German-designed Reis-class submarines to Turkey may boost instability in the East Med, with Greece showing concern over the acquisition that could give Turkey is substantial military edge.
  • Continued German-Turkish cooperation on the matter has also been a sticking point for NATO