Minister of Finance Mehmet Şimşek was speaking at the Dunya Newspaper Climate and Economy Summit held at the Istanbul Financial Center. During his speech, Minister Şimşek also touched on Turkey’s latest economic data, the forecast for lower inflation, and the withdrawal of the KKM.
“We do not have a replacement guarantee and will not have a replacement guarantee in the future.”
Şimşek said, “Today, I am telling my friends who are talking about swaps and short-term funds from abroad that from the beginning we have never relied on hot money and will not rely on it in the future. But maybe, if the programs work, they will not go, because they will extend their maturity. But even if they do go, it is fine, we will use the programs. We will create an environment in which the real sector and our banks will attract resources such as long-term capital from the world, and thanks to that, permanent foreign exchange reserves will accumulate in Turkey with the reduction of current account deposits. Don’t worry. We have never had and will not have implicit or explicit exchange rate guarantees. What is important for us is that this program works. If it did not work, I think it would be difficult for it to be adopted.” he said.
“We will not renew corporate tax incentives in July.”
Simsek said, “Exiting KKM was an important priority for us, but we have said from the beginning that we would exit without disrupting the market or causing problems in the market, and we have actually exited. We have already put an end to the termination of KKM.” KKM in Turkish lira. We will inform you in advance regarding foreign currencies. In July, “We will not renew the tax incentives for companies. In addition, we currently impose limited taxes on deposit interest income. Therefore, we believe that Turkish lira deposits will become more attractive.”
