SAWT BEIRUT INTERNATIONAL

| 23 February 2024, Friday |

Türkiye anticipates surge in foreign investments post-election

Türkiye expects a substantial increase in international investments, notably in mergers and acquisitions, after the upcoming March 31 elections.

Turkish Treasury and Finance Minister Mehmet Simsek has anticipated a substantial surge in foreign investments and capital flow into the country in the aftermath of the upcoming local elections, slated for March 31.

Asserting that Türkiye currently stands near the lowest volatility range of exchange rates among developing nations, Simsek underscored on Saturday in statements to the press the importance of maintaining macroeconomic stability, particularly price stability, as a key strategy to bolster long-term growth potential.

Between June and September, Türkiye witnessed a favorable shift in capital flows, recording an inflow of $4.9 billion, a stark contrast to the flow of $2.9 billion during the initial five months of the year.

The public and private sectors have remarkably enhanced access to global market financing.

Furthermore, the Turkish bond index has exhibited a robust performance compared to other developing nations.

Simsek also brought to light that Türkiye’s foreign currency reserve accumulation peaked at $98.5 billion in May, marking an increase of approximately $36 billion.

This signifies the highest reserve level since 2014, which stood at $134.5 billion. The demand for Turkish Lira loans continues to be high, despite the limited requests for foreign currency loans.

Simsek expressed his belief that the demand for Turkish assets will notably grow in the upcoming months, especially post-election.

In addition to this, the minister unveiled plans to partially finance reconstruction efforts in regions impacted by the February 6 earthquake. This will be achieved through the issuance of long-term special bonds with a 10-year maturity, priced within standard market rates.

Simsek rounded off the discussion by addressing the reevaluation of tax exemptions for corporate deposits protected from exchange rate fluctuations, which are set to expire on June 30, 2024.

He also touched upon the ongoing normalization of monetary policy, which could potentially eliminate the need for such incentives.

 

    Source:
  • Asharq Al-Awsat