Turkish Business News Roundup: Key Events from Last Week

From ECB Interest Rate Decision to World Bank Financing: A Recap of Last Week’s Top Business News

Here’s a roundup of the major events that shaped the global and domestic markets last week:

  1. Minister Simsek’s Announcement: No Tax Advantages for Companies in July for KKM
  2. Finance Minister Mehmet Simsek announced that in July, companies will not renew tax advantages for the Kur Korumali Mevduat (KKM). The Central Bank of the Republic of Turkiye (CBRT) will reduce the obligation rates for the sale of export proceeds and foreign exchange-generating service revenues to the CBRT from 40% to 30% as part of normalization steps.
  3. End of an Era in the Eurozone
  4. The European Central Bank (ECB) lowered interest rates by 25 basis points, bringing the deposit rate to 3.75%, in line with expectations. The decision emphasized the commitment to keep interest rates sufficiently restrictive, with no predetermined commitment to a specific rate.
  5. Putin’s Warning: Western Financing to Turkiye Could Pose Threats
  6. Russian President Vladimir Putin expressed concerns that recent reliance on grants from Western financial institutions by the Turkish government could potentially threaten trade and economic relations with Russia, leading to losses for the Turkish economy.
  7. Additional $18 Billion Financing from the World Bank to Turkiye
  8. Humberto Lopez, the World Bank Country Director for Turkiye, announced an additional $18 billion in financing for Turkiye, in addition to ongoing funds.
  9. Erdogan: Pensioners’ Holiday Bonuses to Be Deposited June 10-14
  10. President Recep Tayyip Erdogan assured pensioners and workers that their holiday bonuses would be deposited between June 10th and 14th, as promised. He also extended the holiday to nine days, with the last two days being administrative leave.
  11. TL’s Real Value Reaches Highest Level Since 2021
  12. The Consumer Price Index-based real effective exchange rate reached 61.46 in May, the highest level since September 2021.
  13. Treasury’s Efforts on Taxation of Stock and Crypto Gains
  14. The Ministry of Treasury and Finance is continuing its work on the taxation of financial activities, including investments in the stock market and crypto assets.

Stay tuned for more updates and analysis on these developments shaping the financial landscape.

Source: Bloomberght / Prepared by Irem Yildiz

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