Turkey's wealth amnesty program enhance market liquidity
Friday, April 10, 2009
Turkey now expects a swift recovery and increase market liquidity, after attracting TL 13.5 bn as part of a wealth amnesty program which was launched to attract an infusion of cash into the country's sagging financial system.
Since the introduction of the program till the 2nd of March, Turkey managed to draw in total fund of around TL 5 billion from Turkish expatriates who live abroad to bring in money held outside the Turkish banking system without being probed concerning the source of the funds.
Officials from the Revenue Administration (GİB) had announced recently that the money attracted by the program had reached TL 5 bn just prior to the final date and they revealed that another TL 8 bn was added before the end of the last day. Thus, the total amount of money drawn in to the country as part of the amnesty program is around TL 13.5 bn. Officials from GİB told Today's Zaman that the program is a great success, attracting than TL 10 bn to the Turkish market in such a volatile atmosphere. This clearly indicates investors have confidence in the Turkish economy's future.
Analysts suggest that the wealth amnesty program will play a decisive role in boosting the country's economy and will provide extra liquidity to the market as well as help ease the burden of the economic crisis. Parliament recently adopted a bill that offers incentives and tax cuts in the hope of attracting more funds from Turkish citizens living in Turkey and abroad to the country's financial system. The bill allows Turks to put their cash holdings in the Turkish banking system with a 2 percent tax on those who live abroad and a 5 percent tax for those who reside in Turkey.
Thanks to the program's success, banks in Turkey will have a chance to extend loans to the non-financial sector. Turkish Central Bank vice Governor Mehmet Yorukoglu recently stated, the Turkish banking system is in extremely good condition now, thanks largely to the "successful regulations adopted after the economic crisis." Overseas Investors are advised to look at property for sale in Turkey because of the country's strong economy. Economists stressed that the Turkish economy is "thriving" because people have the confidence to spend money.
Banking Regulation and Supervision Agency (BDDK) President Tevfik Bilgin had recently said that Turks should not hesitate to take advantage of incentives and contribute to the country's economy. "Turkish expatriates have USD 60 bn in Switzerland alone," he said.
Social BookmarkingSince the introduction of the program till the 2nd of March, Turkey managed to draw in total fund of around TL 5 billion from Turkish expatriates who live abroad to bring in money held outside the Turkish banking system without being probed concerning the source of the funds.
Officials from the Revenue Administration (GİB) had announced recently that the money attracted by the program had reached TL 5 bn just prior to the final date and they revealed that another TL 8 bn was added before the end of the last day. Thus, the total amount of money drawn in to the country as part of the amnesty program is around TL 13.5 bn. Officials from GİB told Today's Zaman that the program is a great success, attracting than TL 10 bn to the Turkish market in such a volatile atmosphere. This clearly indicates investors have confidence in the Turkish economy's future.
Analysts suggest that the wealth amnesty program will play a decisive role in boosting the country's economy and will provide extra liquidity to the market as well as help ease the burden of the economic crisis. Parliament recently adopted a bill that offers incentives and tax cuts in the hope of attracting more funds from Turkish citizens living in Turkey and abroad to the country's financial system. The bill allows Turks to put their cash holdings in the Turkish banking system with a 2 percent tax on those who live abroad and a 5 percent tax for those who reside in Turkey.
Thanks to the program's success, banks in Turkey will have a chance to extend loans to the non-financial sector. Turkish Central Bank vice Governor Mehmet Yorukoglu recently stated, the Turkish banking system is in extremely good condition now, thanks largely to the "successful regulations adopted after the economic crisis." Overseas Investors are advised to look at property for sale in Turkey because of the country's strong economy. Economists stressed that the Turkish economy is "thriving" because people have the confidence to spend money.
Banking Regulation and Supervision Agency (BDDK) President Tevfik Bilgin had recently said that Turks should not hesitate to take advantage of incentives and contribute to the country's economy. "Turkish expatriates have USD 60 bn in Switzerland alone," he said.
Labels: Market-Trends
