ITO President Avdagiç calls for 'capital support' for SMEs

Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç made evaluations regarding the business world's agenda and economic expectations for 2024 at the December Assembly meeting.

Addressing ITO's more than 740 thousand members, Avdagiç called on businesses to turn more towards exports and focus on value-added production in the coming period. Avdagiç noted that this would provide an important breakthrough in advancing the current situation or solving potential problems. Avdagiç emphasized the importance of continuing and increasing government support and incentives for this purpose.

Stating that they value Treasury and Finance Minister Mehmet Şimşek's remark, "We support the real sector for sustainable growth focused on production and exports," Avdagiç said, "We expect support for our real sector and exporters to be strengthened in 2024, when the world economy will be weaker."

Avdagiç said, "A 'selective credit' policy has been adopted using the right method. While doing this, in addition to prioritizing exports and value-added production, it is extremely important that small-scale businesses remain afloat and do not disconnect from production."

Avdagiç stated that the monetary transmission mechanism, which had deteriorated in the recent period, has entered a path of rebalancing, and while the cost of financing has increased nearly fourfold, credit taps have begun to open again.

"INCREASING CREDIT REPAYMENT CAPACITIES WOULD BE AN IMPORTANT SUPPORT"
Emphasizing that compared to large companies, the capital need of small and medium-sized enterprises is much greater for them, Avdagiç used the expression, "A lower amount of resources in terms of volume could be a lifeline for many of our small-scale businesses."

Şekib Avdagiç shared his views on the financing needs of SMEs as follows: "In meeting the financing needs of SMEs, strengthening KGF-backed collateral on one hand and increasing credit repayment capacities on the other would be an important support. We would like to state that the upfront cost of rediscount credits is still at high levels. Reducing both the cost of resources, including letters of guarantee on the rediscount side, and credit waiting periods will provide significant relief."

Regarding the minimum wage to be determined for 2024, ITO President Avdagiç said, "Minimum wage negotiations are ongoing. We are in favor of giving our workers the minimum wage they deserve and with which they can provide for a humane living. At the same time, as ITO, the 'updating of tax brackets and regulating them in a way that compensates for the losses experienced in the last 10-15 years,' which we have also brought to the agenda, is a necessity. For this reason, we would like to draw attention once again to the fact that in the regulations to be made at the beginning of 2024, updating the 'income tax brackets' and the 'SSI upper limit,' which affect all wage groups, should be an important item."

"WE WISH FOR PEACE TO BE ESTABLISHED IN THE MIDDLE EAST AS SOON AS POSSIBLE"

In his speech, he drew attention to the humanitarian tragedy Israel is causing in Gaza. Noting that Western governments are in 'silence,' Şekib Avdagiç said, "Israeli administrators, who have made brutality a policy, have become a common danger for all humanity. We once again raise our voice in favor of an independent and free Palestinian state and wish for peace to be established as soon as possible."