Turkish business leaders urge banks to cut lending rates

interest rate cuts Turkish economy commercial loans industrial growth financing costs

Business leaders in Türkiye are calling on banks to rapidly lower lending rates following a 300-basis-point interest rate cut by the Central Bank of the Republic of Türkiye. Şekib Avdagiç, President of the Istanbul Chamber of Commerce (ITO), emphasized that cheaper financing is essential to sustain economic growth, support investment, and boost employment.

Economic data for the second quarter shows Türkiye's economy grew by 2.3% year-on-year. Notably, the industrial sector returned to growth with a 2.4% expansion after contracting in the first quarter. While foreign trade outlooks are improving and agricultural output rose by 13.3%, the construction sector saw a 1.9% contraction, and overall investment growth remained weak at 0.6%.

Kadir Sayın, President of the AFSİAD Federation, welcomed the planned 2 to 3 percentage point interest rate reductions by public banks but urged private banks to follow suit. He noted that for financing improvements to be effective, they must extend beyond interest rates to include better credit limits, terms, and collateral requirements to truly support the real sector.

Entities

AFSİAD · Central Bank of the Republic of Türkiye · Istanbul Chamber of Commerce · Kadir Sayın · Şekib Avdagiç

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The Turkish economy grew by 2.3% year-on-year in the second quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] The industrial sector expanded by 2.4% in the second quarter after contracting 0.8% in the first quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] Imports fell by 6.4% in the second quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] Exports of goods and services contracted by 3.4% in the second quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] Investments grew by only 0.6% in the second quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] The construction sector contracted by 1.9% in the second quarter. bazaartimes.com · finans.mynet.com
[● 3 SOURCES] Agricultural output increased by 13.3%. bazaartimes.com · finans.mynet.com
[DISPUTED] Şekib Avdagiç called on banks to lower lending rates following the Central Bank of the Republic of Türkiye's 300-basis-point cut. bazaartimes.com · finans.mynet.com