Our Visionary Suggestions are Put into Practice
We carry out our efforts and projects with the goal of making Turkey a strong industrial country following a long-term, wide industrial vision. And while doing this, we, as ICI, always try to be part of the solution. Thus, we occasionally present visionary suggestions to our government.
We are so lucky that these suggestions are put into practice one by one. Here are some examples:
We had voiced that the medium-long term export loans should be increased and used with a suitable interest rate and easy collateral conditions. With the decision taken by the Economy Coordination Board, it was agreed to apply 100 percent collateral in export loans.
We had demanded Eximbank loans to be provided without a letter of guarantee for companies carrying out stable and smooth export operations. With the decisions taken by the Economy Coordination Board, the letters of guarantees in Turkish Eximbank loans will no longer be issued through banks, but Credit Guarantee Fund.
We had mentioned the need for a new generation development bank. Our government began working on restructuring the current development bank. We had asked private sector's new big investments to be supported. Our 2017 budget draft presented to the Grand National Assembly of Turkey and 2017-2018 Medium-Term Program included this suggestion. Turkish Wealth Fund Law was issued on Official Gazette on 26 August 2016, and put into effect.
We had requested a solution for the security issue that the companies faced in accessing loans. The most important and concrete step towards the solution of this problem through Credit Guarantee Fund was taken with the "Breath Credit" campaign initiated on December 2016 with our financial support as ICI.
We had expressed that the varying VAT rates should be corrected in the industry. A correction is made in the VAT practices of side industry and custom production with the purpose of overcoming the VAT inconsistency between the main and side industry of textile.
We had suggested the adoption of a new company- and project-based model considering the needs of the companies just like a tailor-made model instead of the region-based inflexible incentives. Upon our suggestion, a Decree of Council of Ministers regarding a project-based incentive system was issued on Official Gazette on 22 November 2016.
We had stated that the period of limitation defined in the law for the employee salary receivables and severance and notice pays should be limited with two years since it was too long. The the Labor Courts Law draft suggested reducing the period of limitation from five years to two years in receivables other than wage such as indemnity, leave etc.
We had expressed the need for Intermediate Courts of Appeal to work as an effective and efficient mechanism shortening the judicial process. Courts of Appeal (Regional Courts of Justice) commenced operations on 20 July 2016.
We had many other visionary suggestions that were put into practice. You can see them on our 2016 Activity Report. But we are aware that our industrialists and industry deserve much more.
Istanbul Chamber of Industry
Chairman of the Board