İKMİB Statement on Financial Alternatives and Economic Measures

İKMİB Chairman Adil Pelister, in a statement on financial alternatives and economic measures, said "I believe we will be able to see the impact on inflation and its reflection in prices only at the end of the next three-month period, depending on exchange rate stability. Of course, our expectation is that prices will be brought to reasonable levels where they should be and will continue stably."

ISTANBUL (AA)

Adil Pelister, Chairman of the Board of Directors of the Istanbul Chemical Substances and Products Exporters Association (İKMİB), commented on the financial alternatives and economic measures announced by President Recep Tayyip Erdoğan, stating: "I believe we will be able to see the impact on inflation and its reflection in prices only at the end of the next three-month period, depending on exchange rate stability. Of course, our expectation is that prices will be brought to reasonable levels where they should be and will continue stably." In his assessment following President Erdoğan's announcement on financial alternatives and economic measures, Pelister noted that there were important messages regarding measures for the economy, a support package for the TL, a new arrangement for TL deposits, a support package for exporters, and an increase in state contribution to BES to 30 percent. Underlining that Erdoğan stated that exporters would be given forward exchange rates through the Central Bank, Pelister said this is expected to be a solution to the issue of pricing difficulties caused by exchange rate fluctuations. Noting that the exchange rate difference would be paid to exporting companies in TL, Pelister stated: "Especially considering that our chemical sector is dependent on imports in terms of raw materials, stable and predictable exchange rates are important for us. Moreover, a 1-point reduction in corporate tax is planned for export and industrial companies, value-added tax will be reorganized, and withholding tax on dividend payments made by companies will be reduced to 10 percent. We also find it important that investment and fund gains as well as other fund profit shares are exempted from corporate tax, and that operating loans will be provided through credit guarantee fund support to protect and support long-term employment, in terms of our exporters' access to financing to strengthen their capital. I believe we will be able to see the impact on inflation and its reflection in prices only at the end of the next three-month period, depending on exchange rate stability. Of course, our expectation is that prices will be brought to reasonable levels where they should be and will continue stably."