ETO President Metin Güler emphasized that traders' need for financing continues, noting that despite low interest policies, banks remain reluctant to lend. He called for easier conditions in the recently announced housing campaign so that small-scale construction firms can participate.
Eskişehir Chamber of Commerce (ETO) President Metin Güler commented on traders' financing needs and the recent housing campaign. Güler mentioned that although the policy interest rate has dropped to 9%, members still report difficulties accessing loans, with banks being cautious about lending, creating challenges for traders. He stressed the need for rapid action to address liquidity issues for traders, adding that both public and private banks have roles to play in bridging the financing gap.
Traders Should Access Loans on Favorable Terms
Güler pointed out that global recession concerns, the war between Ukraine and Russia, and regional developments continue to pose economic threats for 2023. Additionally, high inflation in Turkey has increased capital and credit needs for businesses. He emphasized that easy and favorable access to financing is essential for a sustainable economy, noting that loan accessibility is crucial for businesses to survive and grow.
Lack of Inflation Accounting Challenges Construction Firms
Regarding the recent housing package targeting middle-income citizens, Güler highlighted that construction is one of Turkey’s key sectors. However, he noted that certain conditions, such as 0.69% credit, are difficult for small-scale construction firms to meet. He explained that construction costs have risen by 400% in the past two years, yet smaller firms cannot reflect these increases on their invoices due to the lack of inflation accounting. This situation limits small firms’ ability to benefit from the new housing campaign.
Small-Scale Construction Firms Should Also Be Included
Güler pointed out that to qualify for the 0.69% loan, contractors are required to deposit 5% of the appraised value of their apartments with the bank and enter into contracts. He proposed reducing the contribution share to the amount of the loan instead of the full property value. He argued that small-scale construction firms cannot meet the campaign's requirements and suggested revising the "New Home" housing campaign to include smaller firms. Güler expressed that such adjustments would help the campaign achieve its goals and boost activity in the housing sector.