25.02.2015 İstanbul
TOBB President M. Rifat Hisarcıklıoğlu, emphasizing that Central Bank lowering loan rate cap also decreases the funding costs for banks, said, “Banks should reflect this decrease with all due haste, if they don’t, the Central Bank lowering the cap will have no meaning.”
Speaking at the 2nd Urban Transformation in All Aspects
Congress held by the Construction Engineers Confederation in İstanbul, TOBB
President Hisarcıklıoğlu gave an interview to Kanal 24.
Stating that, as businessmen, it is difficult to be very excited by the
loan rates, TOBB President M. Rifat Hisarcıklıoğlu said, “The Central Bank
lowering loan rate cap also decreases the funding costs for banks. Our
expectation as the private sector, the construction sector, consumers and
citizens, is that banks should reflect this decrease with all due haste, if
they don’t, the Central Bank lowering the cap will have no meaning. Since the
funding costs of banks have decreased, this should be reflected with all due
haste. We are waiting for a decrease in loan rates because high loan rates
automatically decrease domestic consumption, impacting the manufacturing,
construction and industry sectors.”
Hisarcıklıoğlu drawing attention to the fact that the most important
component of manufacturing is the demand for resources, stated that prohibitive
price is detrimental to Turkey’s growth rate.
Reminding that growth in Turkey is ensured by the domestic market and
consumption, Hisarcıklıoğlu said, “It would be impossible for the market to
keep turning over with these rates. Add to this the pressure of job creation,
the issue of unemployment. What can be done to lower it? We must revitalize the
domestic market. To this end, the mechanism has presented banks with an
opportunity to address this matter. I urge banks to lower their loan rates with
all due haste.”
- “Turkey’s locomotive main
sector is construction”
Assessing the urban transformation congress, Hisarcıklıoğlu stated that Turkey’s
locomotive main sector is construction, saying, “To give an example, consider
Turkey’s growth rate and the growth in the construction sector, it is greater
than Turkey’s growth rate. This means Turkey’s locomotive main sector is
construction. 60 years ago, the percentage of our population living in cities
was 15%, today it has increased to 75%. Cities need structuring as long as
they’re drawing in population from elsewhere. That is where our construction
sector comes in. This is the way it is throughout the world. Urbanization, prosperity
increases bringing about the increase of population in cities, requiring that
correct structural progress is made in regards to urban development in regards
to plans, projects and construction quality. I hope that this summit will
contribute to the Turkish contracting and construction sectors.”
- 15% price advantage in national
bids for domestic companies
Touching on the matter of 15% price advantage in national bids for
domestic companies, the TOBB President stated that this was a legislation
already present but unused in Turkey, “Passing this legislation provides great
opportunity for all of our industrialists. You can manufacture everything that
Turkey imports or buys in Turkey. We don’t need to be saying a product is made
in some other country. The government has provided us with a great opportunity.
If an imported product is sold for 100 TRY, a domestic product will have
preference up to 115 TRY. This is a great opportunity, we must make good use of
it.”
Stressing the need for entrepreneurship, Hisarcıklıoğlu stated that
Turkey’s prosperity is dependent on entrepreneurship.
Stating that they’ve neglected youth and women entrepreneurs,
Hisarcıklıoğlu spoke about the various advantages state has given women in
other countries to this end, such as additional price advantages and quotas for
women entrepreneurs which should also be implemented in Turkey in order to
support entrepreneurship.
- B20 Chair
Hisarcıklıoğlu also provided information on their B20 efforts.
Emphasizing that Turkey will host the G20 summit every 20 years,
Hisarcıklıoğlu said, “This is the first time we are hosting. This is the only
chance we will have in this generation. This chance has come to our doorstep. This
is the first time in the history of the Republic of Turkey will be hosting such
an important summit.”
Pointing out that there are two opportunities in this regard, the TOBB
President said, “The first is that Turkish companies will have an important
opportunity for entering the international arena and becoming global players
during the B20 process. There are many companies with potential for this. It is
difficult to facilitate bilateral trade relations when the legislation for each
country differs greatly. Where are those rules determined? At international
forums like this one. Now it’s at our doorstep, Turkish companies need to be
more active.”
Hisarcıklıoğlu reminded that attending the G20 summit would be 19
countries, EU countries and the representatives of 85% of the world’s economy in
Turkey.
With regards to inclusivity, Hisarcıklıoğlu stated that in order to
relay the problems of B20 and G20 non-members, they’ve held a meeting in
Jeddah.
“An attendance which exceeded our expectation by 100% took place. The
business communities of Saudi Arabia and Gulf countries were there. They all
voiced their problems. We noted them. We will hopefully be acting as their
voice.”