Just when we were talking about terrorism, the Russian crisis, the Syrian problem, fluctuations in the exchange rate and changes in the check law, other difficulties have made their presence felt. Disruptions in the payment of receivables have created a d
L C Waikiki Board Chair Vahap Küçük was the first to indicate what is happening, noting: “Retailing has been losing blood this year. On the second day of the terrorist attacks in Istanbul sales fell by 40 per cent.” Retailing is a critical sector which has its finger on the pulse of domestic demand. For this reason, Küçük’s statements are important. When we read this statement together with the data from the Banking Regulation and Supervision Agency (BRSA), the situation becomes clearer. Alarm bells are beginning to ring in both consumer and commercial loans. In the three months between the end of 2015 and March 2016, the volume of nonperforming commercial loans rose from TL 14 billion to TL 17 billion. As of March 2016, the ratio of non-performing consumer loans stood at 4.38 per cent. This is the highest rate since 2009. As well as the signals from consumption, things are also not going well in industry. There is a particularly dramatic 7 per cent contraction in the domestic automotive market. In addition, the signs of “difficulties”
in a large number of sectors, from health to steel, textiles, clothing, logistics, precious stones and foodstuffs, have reached danger levels.
FALLING SHORT OF TARGETS
In any case, the business community had not entered 2016 with great expectations. Collezione Board Chair Ekrem Akyiğit says that they started the year well and achieved their goals for January and February but that in March and April they were only able to realize 90 per cent of their targeted turnover. Tourism is facing massive problems when it comes to meeting targets. Dedeman Turizm General Manager Emrullah Akçakaya says that terrorist attacks in the first four months of 2016 have meant that hotels in Istanbul in particular have failed either to match their results for the same period in 2015 or to realize their targets for 2016.
THERE IS A CONTRACTION IN EVERY FIELD
The consumer confidence index, which has remained low for a long time, stood at 68.75 in May. Experts says that low consumer confidence shows that many sectors face postponed demand and a contraction in the market. For example, according to data from IDC, there has been a 20 per cent contraction in the computer market in the first quarter of 2016. HP Türkiye General Manager Filiz Akdede says that the contraction of the market beings medium and long- term risks. “The postponement of investments in both the public and the private sector has led to a slowdown in IT purchases. The fluctuations in the exchange rate in particular have also had a negative impact,” says Akdede. Disruptions in the payment of receivables have created a domino effect. Sarkuysan Board Chair Hayrettin Çaycı says that sometimes checks and sometimes promissory notes cannot be paid. Orka Group Board Chair Süleyman Orakçıoğlu says that the problem is present in every sector and adds: “The market is trying to find financing solutions by itself. At the moment, people are trying to find long-term solutions to the problems in the economy and other areas.”