FinMin Nebati Says March Burden on FX-Linked Deposit Scheme is Limited

LOCAL NEWS

• FinMin Nebati says FX-linked lira deposits burden on budget is expected to be limited. Total cost of the program is seen at about 12.5b liras, ($850m) on 250bn liras of total deposits with the first maturity period coming on 21 March.
  • This is due to the exchange rate increase at the end of the term being 5 points above the interest rate paid by banks on the deposit. Considering the positive impact of the CPC implementation on exchange rate volatility and other macroeconomic indicators, it can be stated that the burden of the CPC on the budget will be quite limited.
  • Also said necessary steps will continue to be taken on VAT reductions in line with the needs that will be formed by taking into account the economic priorities of our country – Yeni Safak
• Food crisis also spreads to sugar: Prices in privatized sugar factories went to 700 liras from 430 liras in a month. Turkseker does not sell sugar to anyone except the markets.
  • Dessert manufacturers increased their prices by 20%. Food exporters also said they couldn’t collect the $81 million income for their fruit and vegetable sales to Russia and Ukraine. Coupled with the products manufactured for the two countries, the cost of the war to these sectors rose to $233 million – Hurriyet
• Turkey’s PPI in agriculture rises to a new 11-year high in Feb at 68.49% y/y. Fibre plants rose +196.22%, vegetables, melons & root plants: +112.5%, cereals: +92% & Citrus: +20.86%. Independent research group ENAG places headline inflation at 123.80% vs the govt figure of 54.44% y/y – Duvar