Union of Chambers and Commodity Exchanges of Turkey

In his speech, Hisarcıklıoğlu stated that the world is undergoing a major transformation, that the era of free trade has effectively come to an end, and that everyone is now protecting their own industries and producers.

Noting that trade has become not only an economic issue but also a matter of power and security, Hisarcıklıoğlu explained that in such a period, a country’s production capacity is its most valuable asset.

Hisarcıklıoğlu, drawing attention to the fact that companies are part of the national wealth and must be protected during difficult times, stated, “In a world like this, no country that suffocates its companies can protect its industry.”

Emphasizing that Türkiye is an industrial powerhouse in the region, Hisarcıklıoğlu continued: “We are the industrial powerhouse in the region between Italy and China. But recently, we’ve been rapidly losing ground in industry. If a country loses its industry, it takes generations to regain it. In this context, on behalf of myself and the business community, I would like to express my gratitude for the new 1 trillion lira manufacturing industry investment package announced by our President. This package is the most concrete indication that our government is listening to the real sector.”

- “Banks must also do their part”

Hisarcıklıoğlu stated that the business community supports the program to combat inflation, noting that inflation is everyone’s common enemy.

Hisarcıklıoğlu, noting that there can be no predictability regarding investment and that sustainable growth cannot be achieved unless inflation falls, stated that they sincerely hope the program will be successful.

Hisarcıklıoğlu noted that the biggest challenge he sees in the sector in this regard is access to financing, pointing out that credit interest rates have remained high for a long time, and said: “Moreover, it’s not just about interest rates. When you factor in commissions, fees, and processing charges, the costs our companies bear exceed even the announced interest rate. My furniture manufacturer in Kayseri and my textile manufacturer in Denizli are telling me this. The segment experiencing this hardship most acutely is our SMEs. If their access to financing is blocked, it’s not just a single balance sheet item that suffers. The neighborhood store closes, the workshop in the district shuts down, and our young people become unemployed. Banks are solving the problems of the big players, but no one is paying attention to the small ones. I’m saying this to all the banks.”

TOBB President Hisarcıklıoğlu noted that it is possible to simultaneously demand that growth limits on commercial loans be relaxed and that such limits be completely removed for SME loans.

Noting that inflation has finally begun to decline and that geopolitical risks are also starting to subside, Hisarcıklıoğlu made the following assessment: “This situation creates a favorable environment for a cut in the policy rate. We expect our Central Bank to take steps in this direction. As the policy rate falls, banks must also do their part. We also expect the spread between the policy rate and lending rates - which currently stands at approximately 20 basis points - to narrow. To provide relief to our exporters, discount credit facilities need to be significantly expanded. We expect positive discrimination in credit allocation for our SMEs. If resources are scarce, let’s give priority to those who need it most.”

Citing the “Breath Credit” program as an example, Hisarcıklıoğlu noted that over the past 20 years, they have successfully completed 12 Breath Credit programs in collaboration with the Credit Guarantee Fund and banks.

Hisarcıklıoğlu noted that with the Breath Credit program, which was relaunched in the past year, they have extended over 100 billion lira in loans to 73,000 firms, adding, “But the demand is at least 10 times that amount. The need for financing on the ground is much greater than it appears. However, when we work together, we can produce quick and effective solutions. We can transform the ‘Breath Credit’ from a lifeline that is applied for once or twice a year into a regularly operating, institutionalized SME financing channel. We can increase the limits, extend the terms, and make it available to more of our companies under more favorable conditions.”

- Recep Süleyman Özdil, General Manager of Halkbank

Recep Süleyman Özdil, General Manager of Halkbank, stated that the economy is not merely a field governed by numbers, but that its true strength comes from the people who produce, invest, create jobs, and take risks.

Noting that the financial sector is an integral and complementary part of this effort, Özdil emphasized that strengthening the ties between the financial sector and the real sector is necessary to enhance economic resilience.

Özdil explained that the current situation imposes significant responsibilities on the financial sector, saying, “The Turkish financial sector has the capacity, capability, and strength to shoulder this burden. “We do not view banks merely as institutions that provide loans; we see them as business partners that facilitate investment and generate solutions to the real sector’s needs. The Turkish banking sector has a very robust structure compared to many other countries,” he said. Emphasizing that this robust structure serves as a key source of confidence for the real sector, Özdil noted that they are among the institutions providing the highest level of support to SMEs.

Özdil stated that they support SMEs, industrialists, young entrepreneurs, and women entrepreneurs, and will continue to do so, adding: “Halkbank had been burdened by the legal proceedings in the U.S. Now that we have been relieved of that burden, our access to foreign funding will increase, and we will make those resources available to you, our valued businesspeople. Allah willing, we are working to secure $4-5 billion in funding from abroad starting in September or October of this year. We will make these resources entirely available to you. We promise to mobilize all our strength and resources for your benefit.”

- “Inflation will definitely be brought down”

Alpaslan Çakar, General Manager of Ziraat Bank, also noted that the world is being reshaped politically and economically, and that we are experiencing one of the periods of greatest uncertainty. Stating that this situation brings both new opportunities and new challenges for everyone, Çakar emphasized that Türkiye has an open economy and is directly affected by all global developments.

In this context, Çakar emphasized that Türkiye is implementing an economic program and that the primary goal is price stability, stating, “Because without price stability, it is impossible for us to ensure financial, economic, and political stability. These are all elements that feed into and complement one another. Without price stability, we cannot reduce inflation, and as long as inflation does not decline, we cannot achieve sustainable economic growth and predictability.”

Noting that the impact of current geopolitical tensions is directly visible in prices, Çakar underscored that energy prices have risen significantly above the levels projected in the Medium-Term Program (MTP).

Noting that these prices are a key determinant, particularly for energy-importing countries, and that they trigger inflation, Çakar continued: “However, despite all this, the inflation trend is truly heading downward. Provided that the general inflation trend remains downward and, in particular, the ongoing war in our immediate region and cyclical developments do not escalate into a more negative situation, the path ahead is clear for us. This is an achievable process, and inflation will certainly be brought down. We are moving in that direction.”

- “We will eliminate the problem of access to financing”

VakıfBank CEO Osman Arslan also said that the goal of the ongoing economic program is to establish a predictable, sound economic infrastructure.

Noting that the Turkish economy will emerge strong from this process despite the war and adverse conditions in the region, Arslan said, “We will get through this period together.”

Arslan emphasized the importance of the problem of access to financing, noting that they would carefully take note of the real sector’s issues and recommendations.

Highlighting the significance of the 1 trillion lira credit package with favorable terms announced yesterday by President Recep Tayyip Erdoğan, Arslan stated, “I believe that once the details of this package are announced, all public banks will be able to provide these funds to our industrialists and the business community under the most favorable terms and as quickly as possible, thereby largely eliminating the problem of access to financing.”

Arslan, emphasizing that the Turkish banking sector is well-suited to provide greater support to the business world and the real economy due to both its capital and funding structure, noted the following: “As public banks, we will be able to overcome problems and difficulties more easily through more direct communication moving forward. In fact, I would like to take this opportunity to make a suggestion: let’s establish a ‘financial hotline’ at public banks. Let’s staff this with expert teams, and I believe we will be able to provide faster solutions by receiving requests directly. Just as public banks have always stepped up to the plate—whether during the pandemic, economic crises, or earthquakes—believe in us and trust us: we will continue to demonstrate the same sensitivity and determination moving forward.”

(A.A.)