Financing issues and rising costs continue to challenge Turkish industry. Manufacturers are struggling to access financing sources necessary to realize projects, while consumers face difficulties in obtaining credit to purchase products. PLASFED President Ömer Karadeniz stated that there has been no relief in recent times regarding the biggest problem faced by the Turkish business world, which is access to financing. He pointed out that amidst financing, inflation, cash flow, and changing regulations, Turkish industrialists are losing energy. Karadeniz reported that manufacturers are finding it challenging to receive adequate support for accessing financing, leading companies to reduce production.
In Turkey, accessing financing is becoming increasingly difficult with each passing day, and the rising costs of financing are monitored with concern by companies. This situation is particularly intense in the industrial sector. Manufacturers are searching for ways to cope with the challenges of accessing financing due to rising raw material and energy costs.
PLASFED Chairman Ömer Karadeniz emphasized that Turkish manufacturers are struggling to find adequate support regarding access to financing. He indicated that the capital-strapped Turkish industrialists have come to a point where they need to reduce production and warned that if the difficulties persist, the risk to production in the industry will increase. Karadeniz stressed that businesses, whose profit margins are rapidly eroding, are awaiting credit support to meet their capital needs and continue production, stating, “Our industry, particularly the plastics sector, which is dependent on foreign raw materials and wants to maintain production and employment, is looking for support for access to financing. Many of our manufacturers today say they are experiencing difficulties in accessing financing and that they have become unable to produce.”
Difficulties in Accessing Financing Cause Sector Contractions
PLASFED President, highlighting that companies are struggling to sustain their assets in an environment of high inflation and interest rates, emphasized that the inability for manufacturers and consumers to access financing is leading to contractions in many sectors. Karadeniz noted that companies are trying to survive by sacrificing profitability and investments, and he stated that the bill that has formed for manufacturers so far is quite heavy.
Growth and Investment Plans Are Postponed
Karadeniz pointed out that companies struggling to access financing have been forced to postpone their growth and investment plans for some time, saying, “Companies are shelving their investment and growth plans to preserve existing resources and minimize costs. Unfortunately, companies are experiencing one of their least profitable periods. In all the meetings I attend, the first sentence everyone mentions is access to financing. The most significant issue for companies during this period is to manage cash flow and fund working capital. If we fail to do these, we can put companies in a difficult position.”
Karadeniz noted that while the business world is distracted by access to financing, inflation, cash flow, and changing regulations, it is crucial to highlight how critical the financing issue is for our companies in this time when the Turkish economy and global trade are being reshaped.
Translated by Artificial Intelligence
