ICI Chairman Erdal Bahçıvan pointed out that many regulatory steps regarding the credit mechanism were put into effect in 2022, and that the growth momentum of commercial loans remained low, and said, “Unfortunately, our monetary policy’s dual outlook in 2022 reduced predictability and increased uncertainty.”
The regular meeting of the Istanbul Chamber of Industry (ICI) Assembly in December was held at the Odakule Fazıl Zobu Assembly Hall with the main agenda “Economic Outlook in the World and Turkey as We Leave 2022 Behind, Expectations from 2023 for Our Industry”.
Speaking at the meeting where the 2023 budget was presented to the parliament, ICI Chairman Erdal Bahçıvan stated that 2022, a chaotic year, was a period in which countries accelerated their review processes regarding both their supply chains and industrial and trade policies, together with the lessons learned from the pandemic and the war, and also mentioned many risk topics. He said he transferred it to 2023.
Explaining the developments in the global economy in 2022, which we are about to leave behind, Bahçıvan said that the decline in inflation, which is the most important problem of the Turkish economy in 2022, supported by the base effect and the retreat in commodity prices, is expected to accelerate in December and January and to last until at least the middle of 2023.
“Our monetary policy presented a dual view”
Noting that within the framework of the Turkish Economy Model, the policy rate completed the year at a single-digit level with 9 percent, and that many regulatory steps towards the credit mechanism were put into use, Bahçıvan said: “As ISO, we aim to use loans in vital areas for sustainable growth such as production, investment, employment and exports. we support
On the other hand, the same measures made it difficult for our industrialists to access financing, and the financing problem in the real sector in general continued to increase in 2022. As a matter of fact, although the share of our SMEs in all loans extended, the very low growth momentum of commercial loans, especially by Eximbank and private banks, clearly shows that our industrialists have great difficulty in accessing loans.
In summary, our monetary policy in 2022 presented a dual outlook, ‘loose’ in terms of reducing the cost of financing, but ‘tight’ in limiting credit flow. Unfortunately, this situation has reduced predictability and increased uncertainty.”
“We hope that the financing packages supported by the Credit Guarantee Fund, which will be announced in the near future, will significantly relieve our SMEs and provide a solution to the problem of financing,” Bahçıvan said, emphasizing that the permanent solution to this issue for the real sector will be to eliminate uncertainties and establish predictability. .
“Cautious optimism will be the right attitude”
Pointing out that the rate of increase in the minimum wage has reached 100 percent in the last year, Bahçıvan said, “Once again, the minimum wage increase; I wish it to contribute to sustainable production and labor peace for all segments, especially our employees.”
In the same way, Bahçıvan underlined that the regulation on retirement age is eagerly awaited by all segments, and said:
“I believe that an optimal solution formula will be shared with the public as soon as possible, while meeting the expectations of our non-retired employees, which will ensure that employment and production are not damaged, and that takes into account the sensitivities of our business world, the future of young generations and the healthy long-term sustainable functioning of the SSI. Cautious optimism will be the right attitude for us in 2023.
Our dreams, investment and growth appetite must be kept dynamism, but we must not lose control.”
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