Published On: Tue, Oct 9th, 2018

Treasury and Finance Minister introduces program for “Fight against Inflation”

Treasury and Finance Minister introduces program for “Fight against Inflation"

The decisions taken by the government within the scope of “Total Fight Program with the Inflation” were shared by the public. “Program for the Total Fight against Inflation” was explained by Berat ALBAYRAK, the Minister of Treasury and Finance at the Istanbul Convention Center in presence of important figures in the business world, as well.

The Minister speaking before the representatives of the business world and other ministers during his presentation at the gathering, made following statements:

“With the program that we will explain today, we will carry the investor’s trust much further. Speculative attacks were repelled in August and September.

Thanks to the effective monetary policy implemented together with our measures, comprehensive New Economic Program has met the expectations of the market to a great extent. Thus we have not allowed the atmosphere of concern to be created. We will carry investor confidence much further.

The balancing process which is the first phase of the main process in front of us has started.

Speculative attacks are over. The volatility in the exchange has been gradually left behind, now is the time to ensure balancing in pricing.

The uncertainty and fluctuations have been brought under control thanks to the measures taken against volatility caused by such onslaught in exchange rates and speculative attacks have been repelled.

September inflation figures were surprisingly over expectations for the market, no one expected, we were faced with the result of concerned movement. We are now entering a period in which prices will be normalized.

We have “human” (individual) and “total gain of the whole nation” as the basics of our “understanding of economics”. Today, this “picture of prices” shaped by speculative onslaught is not in the interest of anyone.

Today, every attempt to increase profits in this environment will be short-lived and bring along much greater losses in the near future.

All partners we have contacted over the past week have considered it a national duty to take on responsibility.

The Minister went on to share following as well:

“Participation in the campaign is not mandatory. We are going to form a picture where all colleagues will win together.

Fight with inflation, price stabilization is not a challenge which the state the bodies or the ministries can cope with alone.  If our whole nation does not extend its support one leg will always be incomplete or missing.

We have worked on how to ensure this program does not have a negative impact on our companies and unemployment. We have worked on all aspects regarding what to do, as the administration.

As a whole team, we interviewed our companies in all production, service, supply and retail chains, and observed great support in said meetings.

We have agreed with all our companies for them to make a minimum of 10% discount and continue it until the end of the year. We are happy with the ones to join in and we cannot say anything to those who will not participate, there is no obligation. All companies to become part of this campaign have committed to applying a minimum of 10 percent discount with the specified logo. Here, all brands of products in inflation basket are in question. Support this challenge give us a hand. We have established a website, in regards.

No price hikes in electricity and natural gas.

We have established a strong coordination with all institutions and partners. We will not raise electricity and natural gas prices  until the end of the year unless there is a major change, globally.

We are committing to accelerating the process for pending VAT return payment and finalize it until the year end. We will initiate a process that will pay 50 percent of the refund requests for VAT within 10 days from the beginning of 2019.

Based on this normalization process, our banks also declared that they would support the fight against inflation. To be effective as of August 1, our banks have stated they would  lower interest rates by 10 percent for credits with high rates.

On the other hand some other minister also provided information regarding decisions taken  on their part.

Decisions taken for agricultural products

Explaining that the Cheap Meat Project would continue, Agriculture Minister Bekir Pakdemirli announced the decisions taken in the context of the fight against inflation today as follows;

“In fertilizers a discount of 10 percent will be applied to 35 products. Çaykur will not make price hikes. Watering products will see a 10 percent reduction. Meat and Milk Institution has made a 10 percent discount in prices of 10 products, Ataturk Forest Farm made 10 percent discount in 14 products. TMO will continue to sell rice with 20-40 percent discount. Carrefour, BIM, Shock, Migros and Metro supermarkets will have a 50 percent discount on 50 products for two months.”

New financing support to businesses

Mustafa VARANK, Minister of Industry on the other hand shared following:

First of all, we are implementing the financing support program. We will provide up to 14 percent financing support for TL denominated loans. We offer new support dor SMEs that will export up to 200 thousand dollars with a rate of 180 days term libor. Thus, access to financing of 3 billion liras will be provided. KOSGEB debts will be postponed for 1 year. We will provide up to 25 percent additional support for a total of 1 billion pounds of machinery and equipment. In our second call for nationalization of products causing account deficit we will provide support for new investments of at least 1.5 billion TL.

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