'Turkey's credit risk is below 400 basis points!'

Minister of Labor and Social Services Vedat Ishykhan said the committee will meet in early December to determine the minimum wage for 2024. This was announced during the discussion of the 2024 budget in the GTSDK Planning Committee and Budget Committees at today's meeting.

In his budget presentation, Labor and Social Services Minister Vedat Ishihan said the following:

• The commission will meet in early December to determine the minimum wage for 2024. We look forward to agreement on the amount we all accept. Each increase in the minimum wage provides additional revenue in the amount of the increase in the tax credit balance for all employees. In this context''A tax exemption of 595.1 billion liras is envisaged for 2024.
• 51.1% of the persons included in the category 'persons who have reached retirement age but continue to work' receive pensions under the 'early retirement provision' regime. The number of people in the EYT category who have taken advantage of the relevant regulation is around 2 million to date.
• We will increase the basis of the insurance payment by increasing data analysis and risk-directed control measures to combat informalized employment and payment of informalized wages. We will conduct 17 different insurance incentives, support and rebates to increase the number of registered insurance employees. We will expand flexible forms''work.

Economy Central Bank Governor Erkan announces fourth inflation report

In a discussion on the fourth inflation report of the Central Bank of the Republic of Turkey (CBR), Bank Governor Hafize Gaye Erkan announces the fourth inflation report. It was announced at 4 o'clock today.

CB Governor Erkan stated the following: "Our objective is to ensure the disinflation process and the reduction of inflation to single-digit percent as soon as possible in order to ensure price stability. We continue to work with this persistence and determination. We continue to fight inflation with our strong monetary policy initiated in June. We will continue to use all tools until we achieve''significant progress on inflation. Our objective is to bring inflation down to single-digit levels. Some precursors of a decline in domestic demand are already visible.

Central Bank President, Hafizeh Hafizeh Erkan, answers questions, click to view.

Central Bank prepares signal on 'squeeze policy'

The Turkish Central Bank (TCMB) continues its determined focus on increasing the share of lira deposits in the banking system of the Republic of Turkey. In the meantime, a resolution on 'Amendments to the Required Reserves Requirements' of the TCMB has been published here.''Accordingly, the mandatory reserve rate for the resort deposit (KKM) was increased and an additional mandatory reserve rate in lira was introduced for foreign exchange. Thus, the surplus money supply in the system will continue to be reduced by increasing the mandatory reserve rate. With regard to KKM, the mandatory reserve rate for maturities up to 6 months, where the focus is on, was increased by 5 points to 30%. The mandatory reserve rate for maturities of 1 year to 1 year or more was increased from 5% to 10%. In September, the Central Bank raised the mandatory reserve rate for KKM in the active use area within 6 months from 15% to 25% and set the mandatory reserve rate for maturities of 1 year and longer at 5%. The rates''mandatory reserve for foreign currency was raised by 1 point for all maturities. The regulation imposes an additional mandatory reserve of 4% on foreign currency deposits to support the withdrawal of excess liquidity in TL and the shift to deposits in TL. The exemption rate of the mandatory reserve from sources aimed at promoting foreign investment was extended from December 31, 2023 to the end of 2024.Under the mitigating measures, the 20% mandatory reserve rate for commercial loans provided by financial companies was included as part of the facilitation of financing accompanying the facilitation of the repayment process. TCMB shared with the public that it will continue''strengthening the transmission of monetary policy through additional steps to increase the share of local deposits and credit and quantitative contractionary decisions that will support the tightening process. The TCMB has since taken steps to increase the local currency market share in the banking system under the simplification program, providing conclusions on export credit and concessions in access to credit by businesses. The TL share target for individuals, previously raised from 2% to 2.5% per month, has been raised to 3.5%. In order to increase the share of local deposits, the share of standard local deposits was excluded from the application of the rate.