Bankruptcy proceedings at Turkey's IS Gida have resulted in the closure of 537 restaurants and the loss of 7,000 jobs IS Gida, the former operator of the KFC and Pizza Hut franchises in Turkey, has filed for bankruptcy after debt reached TR7.7 billion ($214 million), AGBI.com reported. The filing comes a month after the US-based owner of KFC and Pizza Hut terminated its franchise agreements with the Turkish company, state-run Anadolu Agency (AA) reported.
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Turkish inflation eased again at the start of the year, offering succor to the country’s central bank as it lowers interest rates from their current heights, the Wall Street Journal reported. Consumer prices were 42% higher on year in January, easing from 44% in December, figures from Turkey’s statistics authority showed Monday. That was a little higher than expected, according to a poll of economists compiled by FactSet, but still marks the eighth straight month of easing in the country’s rate of inflation, which reached a peak of more than 75% last May.
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Turkey’s central bank cut its benchmark interest rate for a second straight meeting as a cycle of higher borrowing costs bears fruit in cooler price rises, the Wall Street Journal reported. The Central Bank of the Republic of Turkey said Thursday that it decided to reduce its one-week repo rate to 45% from 47.5%. This follows a cut from 50% last month, the start of a new phase of lower rates following a series of rapid rate hikes started in the summer of 2023 in a bid to combat rampant price rises.
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There were 1,723 Turkish companies that requested bankruptcy protection in 2024 as a result of outstanding debt stocks, surpassing the previous highest level recorded in 2019, Türkiye Today reported. Amid ongoing challenges such as tight monetary policies within the disinflation program, rising labor costs, and fluctuations in exchange rates, Turkish companies grappled with declining profits and unsustainable debt levels.
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Turkish inflation eased in December, likely reassuring the country’s central bank after it cut its key interest rate for the first time since 2023 last month, the Wall Street Journal reported. Consumer prices were 44.4% higher on year in December, the lowest since June 2023, cooling from the 47.1% a month earlier, the country’s statistics agency Turkstat said Friday.
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Turkey’s annual inflation in December likely eased less than the central bank projected, just as policymakers have started to set the stage for a more accommodative stance in the new year, Bloomberg News reported. Annual growth in consumer prices slowed to 45.2% in December from 47.1% a month earlier, according to the median forecast in a Bloomberg survey of analysts. The data is due Friday. The central bank earlier raised its year-end estimate to 44% from 38% in November.
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Turkey’s banking regulator has drawn up a plan to restrict the tenures of banking executives, a proposal that comes after high-profile accusations of a ponzi scheme at a bank with one of the nation’s longest-serving chief executive officers, Bloomberg News reported. According to the proposal, CEOs would be permitted to serve in that position at the same bank for at most 10 years, according to a draft of the regulation seen by Bloomberg. Deputy general managers would also be allowed up to 10 years, but that could be extended for as much as 5 years with approval from regulators.
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Saudi Cable Co. (SCC) issued a clarification regarding the ruling of Turkey's appeal court to overturn the bankruptcy (liquidation) decision previously issued against Elimsan, its subsidiary in Turkey, Argaam.com reported. In a statement to Tadawul, the company said its board decided on Oct. 11, 2021, to take the necessary actions to protect Elimsan Salt Cihazlari ve Elektromekanik San ve Tic A.S. by applying the debt protection law (financial restructuring). Elimsan is 94% owned by Mas Kablo, a subsidiary, which is 100% owned by Saudi Cable. On Feb.
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Expectations of a Turkish central bank rate cut strengthened on Wednesday after a less-than-requested minimum wage hike, economists said, as it showed the government's determination to reach disinflation targets, Reuters reported. The 30% rise will test the government's efforts to fight years of chronic high inflation as it could pressure prices. Turkey's net monthly minimum wage will be 22,104 Turkish lira ($627) in 2025. The government said the level was set to maintain fiscal discipline and continue the fight against inflation. The workers union had requested an increase of around 70%.
Turkey’s central bank raised its inflation forecasts for this year and through 2026, bringing them closer to market expectations after price gains exceeded estimates for two consecutive months, Bloomberg News reported. The latest outlook shows officials see inflation finishing this year at 44% and then reaching 21% by the end of 2025, up from their previous estimates of 38% and 14%, respectively. The revision, “though not ideal, is not a serious deviation” and the bank expects price growth at 38% in March, Governor Fatih Karahan said Friday in the capital Ankara.
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