Exporters Required to Convert 25% of Revenues Into TRY, State Banks Cut Lending Costs

LOCAL NEWS

• Ankara issues decree requiring exporters to convert 25% of their revenues into lira in a bid to help boost FX reserves.
  • The CBRT will buy 25% of all income from export goods so long as exporters receive payments in USD, EUR or GBP, according to the decree
• Turkish state lender Halkbank to provide loans to artisans, shopkeepers, trademen with 50% discount on interest rates, according to presidential decree published in official gazette. The Treasury will compensate Halkbank’s losses from these loans
• Civil servants union say the minimum wage hike is not enough: “With the additional hike made by the government, there will be a 30.5% increase in salaries and wages for the first six months, said Ali Yalcin, Chairman of civil servants’ labor union Memur-Sen.
  • “The 30.5% increase takes some of the fire away, but not enough to put it out,”
• CHP & IYI leaders reiterate calls for snap elections at a joint rally in Southern Mersin following yesterday’s CPI print at 36.08% y/y (8th highest globally).
  • Opposition leaders both said the people are calling for political change as the ailing economy puts pressure on businesses
• Metropoll survey shows AKP has lost support of 10% of religious voters in the past year, while the HDP & IYI parties gained support in this bloc.
  • 39.8% of religious voters affirmed support for the AKP vs 49.9% prior, alongside MHP support at 3.1% vs 5.9% prior – Duvar

Data/Events:

• 1100GMT: Erdogan speaks in Ankara