Speeches

12/2/2016

YİK Meeting of TÜSİAD Was Held in Ankara

Prime Minister Binali Yıldırım: "This fluctuation in the economy will perhaps continue for another 1.5 month. Things will get better once the new president of the US has assumed the office. No need to worry; we will overcome this too."

Özilhan, the Chairman of TÜSİAD YİK: "We are bothered by the loss of value in TL. Responding the current attitude of the EU with fury would have undesirable consequences."

Symes, the President of TÜSİAD: "We demand that the state of emergency be ended. Turkey needs normalization."

Convening in Ankara at the end of every year, the Higher Advisory Council (YİK) of the Association of Turkish Industrialists and Businesspeople (TÜSİAD) convened in Ankara in the presence of Prime Minister Binali Yıldırım and Minister of Development Lütfi Elvan, Minister of Finance Naci Ağbal, and Minister of Economy Nihat Zeybekçi.

It was seen that in addition to Government members, many businesspeople and bureucrats participated in TÜSİAD YİK meeting. YİK Chairman Tuncay Özilhan, TÜSİAD President Cansen Başaran-Symes and Honorary President Rahmi Koç, in addition to business world representatives such as Ömer and Ali Koç, Güler Sabancı, Ümit Boyner, Arzuhan Doğan Yalçındağ and Bülent Eczacıbaşı, attended the meeting where the financial crisis faced by Turkey was thorougly discussed.

It was noted in the conversations between businesspeople that 2017 would be a difficult year, and USD might appreciate even more against Turkish Lira. It was further stated that the current economic outlook is much different from the situation in early 2000s in that now the private sector is in debt as opposed to the public sector in early 2000s. The participants made the warning that domestic companies might have great difficulty in 2017 due to their debts in foreign currency, and this may result in transferring the domestic capital to foreign companies, which would lead to dominance of foreign capital in Turkish market.

Prime Minister Yıldırım, “Do not worry, things will settle down”

Commenting on the fluctuation in Turkish economy, Binali Yıldırım instilled hope in the business world by saying "Do not worry, things will settle down". Claiming that things would settle down once the United States President Donald Trump assumes the office, Prime Minister Yıldırım called the business world to continue making investments. Implying that the government would not break its ties with the EU, Yıldırım argued that similar things have occurred 4 times during the rule of AK Parti with the following statement:

"We experienced a similar fluctuation in 2006. There was a massive cash outflow. We managed to get over. We also experienced a similar thing during the crisis in 2008-2009, and we overcame that too. We also overcame a similar thing in the Gezi period. I am pretty sure that there is nothing to worry about. I do not say this just to please you. We will get over this too. You know it very well. Do not get confused. Continue to make investments. 2017 will be better. We have taken every short-term measure".

The first measure involves Eximbank. When exporters take out loans in foreign currency, repayment will be made in Turkish Liras. The second measure is the assets disposed by TMSF. They will also be received in Turkish Liras. Thus, the foreign currency needed by the market will remain in the market. We have short-term agreements. We have decided to pay them in Turkish Liras as well. We have issued a notice stating that certain agreements shall be made in Turkish Liras.

The private sector does not have the problem of circulating its debts. The Central Bank Reserve has not decreased by a penny."

TÜSİAD YİK Chairman Özilhan: "Investments in infrastructure are very important but we also need products and factories"

In the opening speech of the meeting, Tuncay Özilhan, the Chairman of TÜSİAD YİK mentioned the trouble in the economy, saying "we are bothered by the loss of value in Turkish Liras". Stating that the problems in the country are not merely caused by the global system, Özilhan said there are also many internal problems ranging from economic stability to the loss of confidence in democratic institutions. Claiming that the unemployment is on the rise, export is in decline, petroleum prices are increasing and capital outflow has started, Özilhan said that the loss of value in TL would increase the inflation, and that investment decisions would not be made due to the unclarity and risks in the economy.

TÜSİAD Chairman Symes: “Turkey needs normalization”

Speaking in TÜSİAD meeting, TÜSİAD President Cansen Başaran Symes emphasized tthat certain practices in the state of emergency has caused loss of confidence in the economy, and said "The state of emergency should be abolished immediately. We expect the government by statutory decrees to end".

Pointing out that Turkey needs normalization, Symes stated that it would not be possible to run an efficient market economy without a strong and fair justice system and a fair order of taxation.