C.Bank releases financial stability report on Turkey

Turkish Central Bank said that the bank expected recovery tendency in sales revenue of the companies to continue in 2010.

C.Bank releases financial stability report on Turkey

Turkish Central Bank said on Wednesday that the bank expected recovery tendency in sales revenue of the companies, in parallel to recovery tendency in economic activities starting as of the last quarter of 2009, to continue in 2010.

According to the "Financial Stability Report" of the Central Bank, "although sales revenue and operating profit reduce with the impact of shrinkage in total demand, financial
losses stemming from exchange difference decreased and profitability performance of the companies in 2009 increased."

The report said, "with the impact of the positive developments in economic activities, company credits started to rise starting as of the third quarter of 2009. This rise was
explicit in Small and Medium Scale Enterprises (SMSEs)."

"It is observed that the companies decreased the amount of loans they procured from abroad and headed towards local sources. The rise in credit volume in the banking sector is expected to continue in case normalisation in global financial markets continues besides the recovery in industrial activity," the report said.

The report said, "impacts of the financial problems experienced in Europe on Turkey have been limited so far. Nevertheless, failure to take the problems in question under control would constitute the most important risk in terms of global financial stability."

In case this risk takes place, it may cause both loss of confidence in financial markets and interruption in recovery process and thus it may have a negative impact on Turkey, the report said.


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Last Mod: 26 Mayıs 2010, 13:51
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