Stock Index dropped by %13.7, Euro
exceeded 2.00 YTL
The
sales reaction initiated by foreigners last week due to reduction of fund flow
to developing markets caused a sharp increase in F/X prices.
Sales by foreigners exiting YTL based investment instruments such as shares and
bonds and heading towards the purchase of dollar amounted to 5.5 billion dollars
in just one week. Stock index devalued by %13.7
in a month and declined to its lowest level since November 2005. Dollar
quotations in Interbank market rose to 1.58
YTL and reached its highest level since May 2003. Dollar/YTL rate fell down
later to 1.56 level. Euro rate increased to 2.0360 YTL and experienced its
historical peak. The interest rates also reached the top level of the year with
17.15%. (Dünya 16./23.5./1.6.2006)
Banks
are resistant against fluctuations
The President of BDDK Tevfik
Bilgin said “Our banks are more efficient than never before and resistant
against fluctuations. Therefore we are very confident”. Bilgin also stated
that the open position fell to 7 billion from 9 billion dollars the previous
week. (Dünya 27.05.2006)
The Central Bank emphasized
its sovereignty and raised interest rates by 1.75 %
The
appointment of Durmus Yilmaz as the Chairman of the Central Bank pleased the
business world. The business world made very positive comments about the
appointment pointing out that Yilmaz has been working for 26 years at the
Central Bank and that an ambiguity has disappeared with this appointment. The
Chairman of the Central Bank Para Durmus Yilmaz in his one
sentence statement about the fluctuations in money markets at the end of May
said, “exchange regime is determined with the government however its execution
is directly under our bank’s authority and responsibility”. The Central Bank
opted to intervene in the rapid increase in dollar rate by stopping foreign
exchange purchase tenders instead of directly entering the market. The experts
and business world supported the decision of the Central Bank by stating that
the mobility in the market will soon come to an end. However, the Central Bank
reacted to the movements in the exchange rate and increase in inflation by
increasing the interest rates by 1.75 points i.e. from 13.25% to 15% on June 8. (Dünya
20.4./16./25.05./8.6.2006)
IMF pointed to the increase in
expenditures, foreign trade deficit and the most expensive gas in the world;
growth is expected to be 6%
In
the World Economic Outlook report published by the IMF,
Turkey
’s current high deficit was indicated as the main risk for the economy. It was
also stated that the most expensive gas in the world is sold in
Turkey
and the highest fuel tax is being levied in
Turkey
as well. The IMF also commented on the increase in budgetary expenditures in
May and asked for a precautionary package amounting to 4.5 billion YTL.
Accordingly, the health expenditures will be curtailed and the unspent items in
the budget will be transferred to the deficit. It is expected that the growth
figure for 2006 of 5% will be 6% by a one point increase and the ratio of
current deficit to GDP determined as 5.8% will reach 7%. (Dünya
20.4./23.05.2006)
Confidence
for
Turkey
increased
“We
are now ranking 13th in the world investment map by jumping 16 places”
In the “Foreign Investor
Confidence Index”, carried out by
US
investment consultancy firm AT Kearney which reveals the country choices of
investors,
Turkey
at 29th rank last year ascended 16 ranks and is now at 13.
Turkey
, ranking 7th among the most trusted countries of European investors, did not
enter the confidence ranking of US investors. The investors stated that Turkish
market became 19% more optimistic in the last year. (Dünya
09.05.2006)
38.7 billion YTL tax evasion has
occurred in 2005
The
tax examinations of inspection units of Ministry of Finance in 2005 revealed
that for each 100 YTL earning being taxed in the country 119 YTL has not been
paid, meaning 54.23% of real earnings have been not been declared. The warnings
of tax offices from 2005 onwards did also not work and there was an increase of
8.5% in tax loss and evasion. (Dünya
2.5.06)
The increase in unemployed figures
continues
The
unemployment rate as of January was 11.8%. The number of employed in January
increased by 19,000 whereas the number of unemployed increased by 102,000.
Official figure of unemployed increased from 2,697,000 to 2,799,000. The number
of people employed in agriculture decreased by 1,085,000 where the number of
people employed in other sectors increased by 1,104,000.
(Dünya
26.4.06)
The
board of a JSC can be comprised of a single member
According to the draft of
Turkish Commercial Code discussed at TBMM Justice Sub-Committee the board of
joint stock companies can be comprised of a single member. According to the
adopted articles of the draft, the existing provision stating that the board
should comprise of at least 3 members will be abandoned and through
harmonization with EU legislation, boards with just 1 member will be enabled.
