In his statement on his social media account, Nebati stated that it should never be forgotten that there is a strong will and a national strategic mind behind the fact that they have been able to realize the centuries-old works and services they have brought to the Turkish nation.
Stating that the strong economic infrastructure, which has reached the maturity of rapid recovery and proactive solutions, which they built step by step during the AK Party governments in the face of global and local economic shocks, is the result of the climate of political stability, Nebati said that this “fused like steel” is what marked the century and formed the vision of Turkey. “He pointed out that there was integrity.
Pointing out that the AK Party governments under the leadership of President Recep Tayyip Erdoğan, without compromising the budget discipline, have reduced the share of interest expenditures in the budget from 43.2 percent in 2002 to 10.6 percent today, thanks to this financial area created. He emphasized that centuries-old works and services have been brought to the country and that innovative instruments such as KKM make positive contributions to the economy.
Reminding that the KKM application in Turkey was put into use at the end of 2021 as a result of the panic atmosphere and high volatility created in the foreign exchange markets, Nebati stated that this panic atmosphere was eliminated, the share of foreign currency deposit accounts in total deposits was significantly reduced and a contribution was made to the stability in exchange rates. .
“Maturity mismatch in the banking sector has been reduced”
In addition, Nebati stated that the maturity mismatch in the banking sector was reduced as KKM contributed to the prolongation of the average maturity of TL deposits.
“Today, the cost of the KKM implementation, which has reached a total of 2.3 trillion liras, to the budget has continued to decrease, reaching a total of 95.3 billion liras. With the removal of the upper limit of interest, it is not expected to create a serious cost on the budget in the upcoming period. On the other hand, If the KKM application had not been implemented and the increase and fluctuation in the exchange rate had continued, the negative effect on our country’s external debt stock would have been high and the development of the real markets would have been significantly interrupted.
Moreover, this would have coincided with a period of sharp increases in commodity prices triggered by the Russia-Ukraine War and the tightening of global financial conditions. Under those conditions, in energy and all other imported inputs, the costs of the real sector in our country would increase much more, and in the current global financial environment, our real sector would be faced with the problem of borrowing more with high costs for the additional foreign exchange need.