Financing issues and rising costs continue to put pressure on the Turkish industry. Manufacturers are struggling to reach financing sources to realize their projects, and consumers are facing difficulties accessing credit to purchase products. Ömer Karadeniz, the Chairman of the Plastic Industrialists Federation (PLASFED), stated that there has not been any relief in access to finance, which has become the biggest issue for the Turkish business world recently, emphasizing that financing, inflation, cash flow, and changing regulations are causing Turkish industrialists to lose energy. Karadeniz noted that industrialists are finding it challenging to obtain adequate support at the point of accessing finance and warned that companies have reached a point where they may reduce production.
As access to finance becomes increasingly difficult in Turkey, rising financing costs are also being closely monitored by companies. This issue is particularly acute in the industrial sector, where manufacturers are looking for ways to cope with difficulties in accessing finance due to rising raw material and energy costs.
PLASFED Chairman Ömer Karadeniz said that Turkish industrialists are struggling to find adequate support in accessing finance. He highlighted that Turkish industrialists facing capital shortages are in a position to reduce production, warning that if the difficulties continue, the risk of decreased production in the industry will grow. Karadeniz emphasized that businesses, whose profit margins are rapidly eroding, are expecting credit support to meet their capital needs and sustain production, stating, 'Our industry, which is dependent on external sources for raw materials and wants to maintain production and employment, is seeking support in accessing finance, particularly in the plastic sector. Today, many of our industrialists are saying they are facing difficulties in accessing finance and are unable to produce.'
The difficulties in accessing finance are leading to the contraction of sectors
Noting that companies are struggling to sustain their assets in a high inflation and high interest rate environment, PLASFED President emphasized that the inability of producers and consumers to access finance is causing contraction in various sectors. Karadeniz pointed out that companies are trying to survive by sacrificing profitability and investments, stating that the current burden on industrialists is quite heavy.
Growth and investment plans are being postponed
Karadeniz indicated that companies struggling to access finance have had to postpone their growth and investment plans for a while, saying, 'Companies are shelving their investment and growth plans to preserve their current resources and minimize costs. Unfortunately, companies are experiencing one of their least profitable periods. In every meeting I attend, the first sentence everyone says is about accessing finance. The biggest issue facing companies at this time is managing cash flow and funding working capital. If we cannot do these, we will put businesses in a difficult situation.'
Karadeniz pointed out that the Turkish business world's access to finance, inflation, cash flow, and changing regulations are causing the global theme to be overlooked, emphasizing how critical it is to solve the financing problems of our companies in this period, where the Turkish economy and global trade are being reshaped.
Translated by Artificial Intelligence
