Simsek Says Turkey to Mull Lifting FX-Linked Account Tax Incentives

With the normalisation in monetary policy, the exit from FX-protected lira deposits will be completed without need for any incentives, Finance Minister Mehmet Simsek said in an interview with Bloomberg.

• “Biggest incentive for these accounts is the tax exemption. We will make an assessment on that next year. Therefore, the exit process from KKM continues successfully”
• “The most important variable here is the normalization of monetary policy, rationalization of banks’ deposit and loan pricing. If the accumulation of FX reserves continues, there may be an evaluation to accelerate the process.”
• “If we implement inflation accounting in financial institutions, a big additional budget deficit will emerge,” he also mentioned.