“Rising CDSs hinder access to finance”

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Cemre Nur Karaca

Evaluating the industrial production data, Turkish Plastics Industrialists Research, Development and Education Foundation (PAGEV) President Yavuz Eroğlu pointed out that there are serious problems in the industrial sector’s access to affordable space and finance. pulled. Eroğlu stated that Canadian Exim Bank did not provide funds to the Turkish industrial sector due to high CDSs.

“Industry cannot find financing from other countries due to high CDSs”

PAGEV President Yavuz Eroğlu stated that the production of the industrial sector is growing rapidly and that the production and capacity power will grow rapidly in the coming period. He said he will continue. Eroğlu stated that the Capacities of the sector exceeded 80 percent and this ratio created the need for new investments;

“Capacity utilization rate is very important for the sustainability of industrial production. The capacities have exceeded 80 percent, which creates the need for new investments. We have two issues in this regard. The most important of course is easy access to finance, and the second is the affordable location problem of the industry. The overreactions of some countries in the Russia-Ukraine crisis and Turkey’s rising CDS negatively affect us industrialists in finding financing.”

“Our companies investing in Turkey use Exim Banks of other countries. Canada in the past days We learned that our companies, which are in the process of investing with Exim Bank, received a response such as “Turkey’s risk has increased, we will no longer make this funding.” We need to support these investments with our own resources and our financing system. The KGF deadlock of the future

Pointing out that with the circular issued by the Presidency on March 18, Yavuz Eroğlu said that there are problems in companies’ benefiting from KGF, “KGF is a very important instrument, but we see that the last announced KGF package is insufficient and needs to be increased. The previously announced KGF package is still in deficit, and the manufacturing-based import substitution program is a package that will cover the growth in the recently announced current account deficit. However, with the circular issued by the Presidency on March 18, SMEs fell into a difficult situation. The regulation in the circular was issued in a positive way to increase the number of SMEs, but it seems to be misinterpreted”

“With the last decree, the investments of companies that will reduce the current account deficit in Turkey have been blocked. While there is a guarantee limit of up to 250 thousand liras for non-SME companies, 25 thousand liras are available for SMEs. “Million lira. In other words, companies that have been prepared for investment and submitted their files inside are called SMEs by the regulation. Therefore, they issue an appropriation of 35 million TL to the company that will invest 250 thousand TL. This situation needs to be corrected because our country needs sustainable investments, and with this circular, investments were cut off.” said

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