Dec 18 2017

Erdoğan to personally approve new investment incentives – minister

Turkish President Recep Tayyip Erdoğan will approve 70 billion liras ($18 billion) of new investment incentives to industry, Economy Minister Nihat Zeybekçi said.

The project-based incentives, in areas such as energy, pharmaceuticals and petrochemicals, will be presented to the cabinet and then granted by presidential decree, Zeybekçi said, according to Hürriyet newspaper.

The government is trying to find new ways to stimulate the economy after the conclusion of a 250 billion lira credit guarantee scheme. Other proposed measures include freeing up bank lending by reducing the reserves banks need to set aside for troubled loans. Economic growth slowed to 1.2 percent quarter-on-quarter in the three months to September from 2.2 percent in the previous three months, the statistics office said last week.

The government will complete groundwork for the incentives system by the end of the month, Zeybekçi said. Around 12-13 applications have already been received, he added.

The value of investment incentives increased by 80 percent in 2017 compared with the previous year. The government expects most of them to be implemented in 2018, boosting economic growth, he said.