Turkish business world Reacts Positively to Stimulus Package
Sunday, June 28, 2009
The Turkish business world welcomed the new incentive package, which was announced by the Prime Minister, with excitement as it has raised hopes that the markets will take a deep breath amid the uncertain atmosphere caused by the ongoing global financial turbulence.
Nihat Ergün, Minister of Trade and Industry Speaking to reporters in Ankara said that the government will address investments that are currently under way in a new stimulus package. The minister added that a number of investment projects had been started prior to the announcement of a recent incentive package and were still in progress. Entrepreneurs said that Turkey, which has been indirectly affected by the crisis as the consequence of a spillover effect, should manage to free itself from the grip of the global economic meltdown.
A previous stimulus package that took effect in March saw many consumers reach for their savings rather than bank loans, which remain costly despite huge rate cuts and now the government recently embarked upon another stimulus package, this time focusing on boosting investment. With the new package, entrepreneurs will have a corporate tax rate of between 2 and 10 percent, depending on the region they invest in. The government recently divided regions into four categories, based on their current economic development level and possible investment opportunities.
With regard to reactions from the business communities concerning the new package, Mr. Nihat Ergün said many welcomed the plan, calling it satisfactory. “There are some remaining details we have to iron out, but work is under way to this end,” he said.
Leading figures from the Turkish business world said they welcomed this package. The president of the Istanbul Chamber of Commerce, Murat Yalçintas, described the package as “extremely coherent and inspiring.” He added that the government was taking the right step against the crisis and that small businesses will be relieved by the incentives introduced in the package and also the new package will inspire confidence and improve morale in the domestic markets., Hazim Sesli, The president of the Young Businessmen's Association of Turkey assessed the package is very positive and also “encouraging” for the future of the markets
Banu Kıvcı Tokatlı, Finans Yatırım chief economist, said the new incentives will provide support for the real estate, auto and home appliances sectors, which were battered by the crisis more than any other sector, preventing the recession from becoming deeper.
Social BookmarkingNihat Ergün, Minister of Trade and Industry Speaking to reporters in Ankara said that the government will address investments that are currently under way in a new stimulus package. The minister added that a number of investment projects had been started prior to the announcement of a recent incentive package and were still in progress. Entrepreneurs said that Turkey, which has been indirectly affected by the crisis as the consequence of a spillover effect, should manage to free itself from the grip of the global economic meltdown.
A previous stimulus package that took effect in March saw many consumers reach for their savings rather than bank loans, which remain costly despite huge rate cuts and now the government recently embarked upon another stimulus package, this time focusing on boosting investment. With the new package, entrepreneurs will have a corporate tax rate of between 2 and 10 percent, depending on the region they invest in. The government recently divided regions into four categories, based on their current economic development level and possible investment opportunities.
With regard to reactions from the business communities concerning the new package, Mr. Nihat Ergün said many welcomed the plan, calling it satisfactory. “There are some remaining details we have to iron out, but work is under way to this end,” he said.
Leading figures from the Turkish business world said they welcomed this package. The president of the Istanbul Chamber of Commerce, Murat Yalçintas, described the package as “extremely coherent and inspiring.” He added that the government was taking the right step against the crisis and that small businesses will be relieved by the incentives introduced in the package and also the new package will inspire confidence and improve morale in the domestic markets., Hazim Sesli, The president of the Young Businessmen's Association of Turkey assessed the package is very positive and also “encouraging” for the future of the markets
Banu Kıvcı Tokatlı, Finans Yatırım chief economist, said the new incentives will provide support for the real estate, auto and home appliances sectors, which were battered by the crisis more than any other sector, preventing the recession from becoming deeper.
Labels: Economy
