While the past week witnessed developments in the US debt limit crisis and interest rates for global markets, the statements of President Erdoğan, who was re-elected in Turkey, the sharp decline in consumer loans, the first quarter growth and the abolition of the prepaid premium in currency-protected deposits came to the fore.

Here are 7 titles last week…

1- Erdogan: Eliminating the problems caused by inflation is the top priority

President Recep Tayyip Erdoğan also gave messages about the economy in his balcony speech. “Removing the hardships caused by price increases caused by inflation and compensating for welfare losses is the most urgent topic of the coming days,” Erdogan said.

2- Prepaid premium in KKM has been removed

The Central Bank of the Republic of Turkey (CBRT) has taken a new decision for the application of currency protected deposits.

Premium payments can be made at the end of the maturity date for KKM accounts that will be opened or renewed as of June 1st. Premium payments will be made in TL.

3- In the USA, the “debt limit” bill passed the Senate

The U.S. Senate has approved a bill that will prevent the country from defaulting by increasing the debt limit.

The US Senate also voted on the Financial Responsibility Bill, which was agreed upon after long negotiations in the midst of the White House and the Republicans, and was accepted by the House of Representatives with 314 votes to 117.

4- Turkish economy grew by 4 percent in the first quarter

With the effect of the increase in public investments before the earthquake and the election and the consumer’s demand in the inflation environment, the growth in the first quarter was above the expectations with 4 percent. While the contraction in exports drew attention in the first quarter, the decline in agriculture and industry also came to the fore. The construction sector, on the other hand, displayed the most appropriate performance in 5 years with a growth of 5.1 percent.

5- Hard brake on consumer loans

According to the calculation made on the basis of the information published by the Banking Regulation and Supervision Agency (BDDK), the 13-week, annualized and exchange-adjusted growth in consumer loans declined to 77.8 percent in the week of May 26. The growth in consumer loans had reached 100.47 percent in the previous week.

6- Net reserve of the CBRT was minus 4.4 billion dollars

The net reserve of the Central Bank of the Republic of Turkey decreased to minus 4.4 billion dollars in the week before the election. Thus, a historically low level was recorded in net reserves.

7- The record in automotive sales continued in May as well.

The car and light commercial vehicle market in May is 70.9 percent compared to the previous year.
increased to 111 thousand 356 units. Thus, while the record number was reached on the basis of May, in the January-May period, it increased by 60.5 percent compared to the same period of the previous year and amounted to 445 thousand 006.

Source: Bloomberg HT

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