Turkish economy is least affected in the world by the pandemic

Turkish economy is least affected in the world by the pandemic

Oguzhan Ozbas, the representative of the Central Bank of the Republic of Turkey, said that the country's economy had suffered slightly compared to other countries. As the pandemic ends, the economic situation will stabilize quickly.

WHAT MEASURES ARE TAKEN

In order to stimulate the economy, to soften the damage caused by the crisis and the financial problems that people faced due to the coronavirus pandemic, the government developed a plan called the "Shield of Economic Stability".

It consists of 20 articles:

  1. The minimum pension will increase by $ 230.
  2. VAT for domestic flights from 18% is reduced to 1%. The condition is valid for three months.
  3. Hotels will not be charged with resort fees until November.
  4. Over the course of 6 months, companies working in such areas as logistics, metallurgy, automotive, infrastructure, food, retail, entertainment are free of paying debt formed from April to June.
  5. Businesses affected by COVID-19 are granted a credit extension of at least three months. At the same time, a small amount will be paid by the government.
  6. The State Bank provides deferrals for repaying mortgages and loans for at least three months for all those affected by the pandemic.
  7. Exporters will have financial assistance from the government.
  8. Small and medium-sized businesses will receive loans from the Credit Guarantee Fund, the size of which is increasing from $ 3,800,000 to $ 7,700,000.
  9. Citizens affected by the pandemic will receive special conditions for obtaining loans.
  10. People who were forced to leave their jobs in April will receive a bonus.
  11. A part-time payout system has been developed. It simplifies payroll for employees who have to work part-time or on a flexible schedule because of COVID-19.
  12. Low-income families receive assistance.
  13. All people who have lost working time due to quarantine will receive compensation increased from 2 to 4 months.
  14. Auxiliary programs for health and social security will be launched for senior citizens under quarantine.
  15. Investments are planned to support the national airline Turkish Airlines. But the amount of support has not yet been established.
  16. Citizens of the age group over 70 in April will receive a double pension.
  17. The insolvency of enterprises declared in April, May and June is equal to force majeure. The situation should be recorded in official documentation.
  18. In the central bank, the interest rate is reduced from 10.75% to 9.75%.
  19. Banks will receive investments from foreign exchange reserves in the amount of $ 5,100,000.
  20. Three months delayed repayment of loans with rediscounting is estimated to be of $ 7.6 million.

SITUATION AND PROSPECTS

The Statistical Institute of Turkey reports on the growth of the country's economy by 6% for the fourth quarter of 2019 and by 1%. GDP(Gross domestic product) in 2019 has increased by 14.9% and exceeded the amount of $ 656,000,000.

Bankers note the impact of coronavirus on tourism, trade and domestic demand and continue to monitor the situation in financial markets and jobs. To stabilize the situation and the easing of the exchange rate amid falling energy prices are expected.

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