A "Monetary Policy and Macroeconomic Outlook Meeting" was held in Gaziantep with the participation of Central Bank Governor Dr. Fatih Karahan.

Gaziantep Chamber of Industry (GSO) Chairman Adnan Ünverdi stated that the Central Bank's ongoing interest rate reduction decisions were pleasing, adding that for the sustainability of production and trade and for macroeconomic balance, the policy interest rate reductions should continue and the banking sector should quickly implement the reductions.

The "Monetary Policy and Macroeconomic Outlook Meeting" was held in Gaziantep in cooperation with the Gaziantep Governorship, the Central Bank of the Republic of Turkey, and the Gaziantep Chamber of Industry (GSO).

At the meeting held at the Şehitkamil Art Center, current developments in the Turkish economy, monetary policy applications, and the macroeconomic outlook were discussed comprehensively, while Central Bank Governor Dr. Fatih Karahan answered questions from the business community.

GAZIANTEP GOVERNOR KEMAL ÇEBER: GAZIANTEP, WITH ITS DEEP-ROOTED INDUSTRIAL CULTURE, STRONG PRODUCTION INFRASTRUCTURE, AND HIGH EXPORT POTENTIAL, IS ONE OF THE LOCOMOTIVE CITIES OF OUR COUNTRY

Gaziantep Governor Kemal Çeber, who delivered the opening speech at the meeting where current developments in the Turkish economy, monetary policy applications, and the macroeconomic outlook were comprehensively discussed, stated that Gaziantep makes significant contributions to the national economy with its industrial infrastructure, production capacity, and export power, saying, “We are very pleased to host the Governor of the Central Bank of the Republic of Turkey, Mr. Fatih Karahan, in our city. Addressing monetary policies and economic developments directly from an authoritative source is extremely valuable for our business world. This meeting held here today will make significant contributions to our industrialists and traders moving forward with stronger steps towards the future. Gaziantep, with its deep-rooted industrial culture, strong production infrastructure, and high export potential, is one of the locomotive cities of our country.” "I believe that the data to be announced here today, along with the consultations to be held, and the messages to be given will have very valuable results for our country's economy and business world," he said.

GSO BOARD CHAIRMAN ADNAN ÜNVERDİ: WE EXPECT NEW STEPS TO DEVELOP INDUSTRY FOR NATIONAL DEVELOPMENT AND MACROECONOMIC BALANCE

GSO Board Chairman Adnan Ünverdi also pointed to the improvement process in monetary policies in his speech, saying, "We are going through difficult times in the economy due to increasing global risks and domestic market conditions. Our city, which has the largest organized industrial zone in Turkey and is the backbone of our country's economy with its annual exports of 10 billion dollars, is also making an extraordinary effort to overcome this process with its industrialists, producers, and exporters. In this regard; especially in such critical periods, the decisions of central banks, which are market regulators, are of great importance in ensuring financial stability and determine the future vision. As the business world, we expect new steps to be taken by the Central Bank under the leadership of our President to develop the industry." "We find the monetary policy and efforts satisfactory despite all our difficulties in terms of the development of our country's economy, credibility in the domestic and global markets, and macroeconomic balances," he said.

Ünverdi continued, "Following a period of economic instability, significant progress has been made in combating inflation and achieving price stability, which had become the biggest problem, thanks to the policies implemented by our Central Bank Governor and the economic administration, and the disinflation process continues. As the real sector, we are making every effort to ensure the success of the inflation fight and monetary tightening policies, and we find the Central Bank's interest rate cuts in recent months very positive and appropriate. I would also like to state here that the continuation of these cuts in the coming months is the primary expectation of everyone who produces and trades. For the sustainability of our businesses and investments, financing costs need to reach reasonable levels as soon as possible. We underline that the banking sector should also quickly reflect this in loan interest rates along with the continuation of the policy interest rate cuts."

Adnan Ünverdi emphasized the need to take steps to develop industry for the country's development and macroeconomic balance, saying, "Our country..." "We must escape the grip of high interest rates, and making money from money must cease to be attractive. The real sector has been the most negatively affected by tightening policies. Access to finance, increasing costs, and unfavorable conditions in domestic and foreign markets have increased pressure on our industrialists and caused a major contraction," he said.

Ünverdi also expressed the expectations and suggestions of industrialists and the Gaziantep business community to the Central Bank, which would help overcome the bottleneck in production and trade and thus contribute to the country's economy. He listed the demands and suggestions from the business world as follows:

“1- We regret to see that the growth restrictions on SME loans are harming the economic program and creating inflationary pressure by leading to supply contraction.

The use of commercial loans under favorable conditions should be increased so that our firms can continue their production and commercial activities. For this reason, the growth restrictions on SME loans and commercial credit cards should be removed urgently.

2- We are grateful for the significant increases in the volume of rediscount loans in recent times, but this should continue and be increased to the level of 65-70 billion dollars, equivalent to 3 months of exports.

The requirement for letters of guarantee in rediscount loans should be removed.

3- The Central Bank's Foreign Exchange Conversion Support is both insufficient and its conditions are very stringent. This application should be simplified, and its amount and duration should be increased.

4- The gap between inflation and the exchange rate has widened, and achieving balance has become a necessity. Therefore, exchange rate support for exporters should be increased.

5- We want the obligation for exporters to convert their foreign currency earnings to Turkish Lira to be completely removed.

6- 2025 year-end inflation While the target range for the forecast was 25-29 percent, it was realized at 30.89 percent. We hope that this process will not negatively affect the downward trend in the policy interest rate.

7- In the November inflation report presentation, it was stated that the government gave weight to the expectations of the real sector regarding inflation. However, our input costs are very high, and we need new support mechanisms from the government to both allow our producers to breathe and contribute to disinflation by subsidizing our costs.

8- While the real sector and the business community continue their struggle with great patience, we expect the government to manage the process more effectively in terms of fiscal discipline and savings in the government.”

Following the opening speeches, the Governor of the Central Bank of Turkey, Fatih Karahan, gave a presentation titled “Monetary Policy and Macroeconomic Outlook” to the participants, which included monetary policy, the macroeconomic outlook, current interest rates, and economic developments.

The meeting concluded after a question-and-answer session where participants shared their views and suggestions.

WHO ATTENDED THE MEETING

The meeting was attended by: Gaziantep Governor Kemal Çeber, Central Bank Governor Dr. Fatih Karahan, Deputy Governors Bülent Uygur and Hüseyin Kaptan, Gaziantep Metropolitan Municipality Deputy Mayor Halil Uğur, Gaziantep University Rector Prof. Dr. Sait Mesut Doğan, SANKO University Rector Prof. Dr. Güner Dağlı, Gaziantep Chamber of Commerce and Industry (GSO) Honorary President Abdülkadir Konukoğlu, GSO Assembly President Adil Sani Konukoğlu, GSO Board of Directors President Adnan Ünverdi, Gaziantep Chamber of Commerce (GTO) Assembly President Hilmi Teymur, GTO Board of Directors President Mehmet Tuncay Yıldırım, Southeastern Anatolia Exporters' Associations Coordinator President Ahmet Fikret Kileci, Nizip Chamber of Commerce Board of Directors President Mehmet Özyurt, Gaziantep Provincial Police Chief Celal Özcan, Gaziantep Provincial Gendarmerie Commander Major General Halil Şen, GSO Board of Directors Members, officials from chambers of commerce, stock exchanges, institutions and organizations, and business representatives attended the event.