Şimşek: The bottleneck in foreign financing is being solved

Minister of Treasury and Finance Mehmet Şimşek stated that Turkey overcame the problems in accessing external financing following the  normalization steps in economy initiated by his team; adding, “Since June, our banking sector has borrowed 6 billion 767 million dollars from abroad, our non-bank financial institutions have received 367 million dollars and our real sector has received 3 billion 266 million dollars.”  “We  secured foreign financing totaling 10.4 billion dollars,” he said.

Minister of Treasury and Finance Mehmet Şimşek said that confidence in the country is gradually increasing thanks to the rational program implemented in economic policies.

Drawing attention to the financing obtained by banks in the last month, Şimşek said in his assessment to the AA correspondent, “The problems experienced in foreign financing are being solved by strengthening the trust in the government. VakıfBank, Yapı ve Kredi Bankası, Eximbank, Türkiye Sınai ve Geliştirme Bankası, Denizbank and İş Bankası, all received syndicated loans August and September. While the issuances attracted a high interest, a total of 2 billion 57 million dollars of financing was provided to our country in the last month. The deals of these banks attracted interest from a wide geography such as the UK, the Middle East, Europe, America and Asia-Pacific countries. Leading fund managers have put Turkey on their radar for investment. Since June, a total of 10.4 billion dollars of external financing has been received from abroad, including 6 billion 767 million dollars for our banking sector, 367 million dollars for our non-bank financial institutions and 3 billion 266 million dollars for our real sector. “This is the clearest indicator of confidence in the country’s economy,” he said.

“We have set realistic targets to ensure price stability”

Şimşek pointed out that his government received positive results from the contacts they made in the Gulf region after the environment of trust created; and the bilateral talks initiated under the leadership of President Recep Tayyip Erdoğan, and added, “Türk Eximbank, with the participation of 8 financial institutions from the Gulf region, under the coordination of ITFC, the trade financing institution of the Islamic Development Bank, with the aim of supporting Turkish exports borrowed 277 million dollars with a 1-year maturity,” he said.


Expressing that investor interest in the real sector has increased, Şimşek stated that household appliance manufacturer Arçelik also attracted financing of 400 million dollars in the first corporate bond issue of the year. Şimşek pointed out that Rönesans Holding also received a loan of 781 million euros (approximately 834.4 million dollars) under the guarantee of UK Export Finance (UKEF) in July.

Stating that the Medium Term Program (MTP) also gives confidence to international markets, Şimşek said that the MTP has three basic components: fight against inflation, financial discipline and structural reform, and the fourth element of the program is  increasing external financing.


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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.