An intense agenda was followed in the country last week. The interim hike in the minimum wage during the week was the most followed news on the agenda. Furthermore, the repercussions of the regulation passed by the BRSA on TL commercial loans continued this week as well. Bidding for platforms with unfair trading practices in e-commerce has passed the commission. In overseas markets, Russia’s default for the first time since 1918 and recession concerns were high on the agenda.
Here are 7 highlights from last week …
1. The new minimum wage is 5,000 500 TL
President Recep Tayyip Erdoğan announced that the net minimum wage has been increased by 30 percent from TL 4,253 to TL 5,500. Speaking at the press conference held in Istanbul, Erdogan said: “Our state will support employers with 100 lire per worker”.
2. The repercussions of the discipline introduced by the BRSA on TL’s commercial loans continue
Regarding the loan disbursement decision announced on Friday, the Banking Regulatory and Supervision Agency (BDDK) said: “Being an independent company, having a TL equivalent of the company’s foreign currency (FX) cash assets over 15 million. of TL and being a company subject to foreign currency (FX) cash, the TL equivalent of the company’s liquid foreign currency assets is calculated from total assets or the greater of last year’s net sales revenue exceeds 10 percent … For any company to fall within the scope of the decision, all three conditions must be met. ” made the statement.
3. The e-commerce invoice has exceeded the commission
The bill amending the e-commerce regulation law was accepted by the parliamentary committee on industry, trade, energy, natural resources, information and technology. With the proposal, the e-commerce intermediary service provider, who practices unfair commercial practices in e-commerce, will be sanctioned from 10 thousand to 100 thousand lire for each e-commerce service provider with improper practice.
4. “The poverty line has exceeded 20 thousand lire”
According to the results of the Türk-İş Borders of Hunger and Poverty Survey in June 2022; food inflation exceeded 117%. The monthly food expenditure of a family of four, that is the hunger limit, has risen to 6 thousand 319 lire and the poverty line to 20 thousand 818 lire. The ‘cost of living’ of a single employee rose to 8,000 313 lire a month.
5. Russia defaults for the first time since 1918
While the 1-month grace period on Russia’s two Eurobond coupons expired on Sunday, the country has defaulted on these payments. Russian Finance Minister Anton Siluanov said the default notice was a “comedy”. Kremlin spokesman Dmitry Peskov denied that the country was in default.
6. The SCT discount on electric vehicles is upon us
In order to encourage the Turkish national car Togg, which is expected to be introduced to the market in 2023, the proposal to reduce the SCT tariff in electric vehicles from 60% to 10% has been brought to the agenda in the competent committee of the Grand National Assembly of Turkey. The offer will also reduce the prices of other electric vehicles in Turkey.
7. BofA / Hartnett: Prepare for recession shock
Michael Hartnett, Bank of America’s Chief Investment Strategist, stressed that rising interest rates did not reduce inflation, adding that you need to be prepared for a recession shock and that the bank’s market indicators have indicated a bear market for three weeks.