PLASFED President Ömer Karadeniz, drawing attention to the increase in concordat applications as a clear indicator of financial distress in the business world, said, “Paving the way for industrialists is paving the way for the economy. To enable companies to survive without needing a concordat, financing costs must be lowered, and production-stimulating policies need to be urgently implemented”.
One of the most talked-about topics in the Turkish economy recently has been the increase in concordat applications. High interest rates, high inflation, and difficulties in accessing finance continue to put serious pressure on industrialists. Ömer Karadeniz, President of the Plastics Manufacturers Federation (PLASFED), stated in his assessment that there is an urgent need for “policies that will clear the way” for industrialists to maintain their production power.
Karadeniz, drawing attention to the increase in concordat requests in recent months, emphasized that the signals should be read correctly. Defining concordat as an effort for companies to survive by restructuring their debts, Karadeniz said, “However, the frequent discussion of this mechanism clearly indicates the financial contraction that the business world is experiencing. Our wish is for companies to be able to continue their activities without needing a concordat. For this, financing costs must be lowered, and the investment environment needs to be improved”.
“Interest and inflation are challenging industrialists”
Stating that investment decisions are being postponed due to high interest rates, and increasing inflation is multiplying production costs, Karadeniz noted that high interest rates make it difficult to meet working capital needs. Karadeniz also recorded that inflation constantly pushes up energy and raw material costs, emphasizing that this situation both shrinks demand in the domestic market and weakens our competitiveness in exports.
“Paving the way for industrialists means growing the economy”
Karadeniz, pointing out that an industrial policy that protects production power is crucial for the future of the Turkish economy, said, “Paving the way for industrialists is actually paving the way for the economy. The survival of our businesses that can export, produce added value, and provide employment is directly linked to the country's growth. Our expectation is for policies that instill confidence in investors, facilitate access to finance, and encourage production to be implemented as soon as possible”.
“Industrialists continue to produce”
Karadeniz noted that despite the difficulties, industrialists continue to produce for Turkey, stating that they create employment, export, and provide added value to the country's economy despite all hardships. Listing their demands as an economic environment where industrialists can see ahead and do not have to postpone investment decisions, Karadeniz said, "With the right policies, the Turkish economy can re-enter a strong growth process."
This content has been translated using artificial intelligence technology.