While access to financing in Turkey is becoming more difficult day by day, companies are also watching with concern the increase in financing costs. It is seen that this situation is experienced much more intensely, especially in the industrial sector. Industrialists are looking for ways to cope with the difficulties in accessing financing due to increasing raw material and energy costs.
Plastic Industrialists Federation (PLASFED) Board Chairman Ömer Karadeniz said that Turkish industrialists have difficulty finding sufficient support in terms of accessing financing. Karadeniz, who stated that Turkish industrialists experiencing capital shortages have reached the point where they will reduce production, drew attention to the fact that the danger of production in the industry will increase if the shortage continues. Emphasizing that businesses whose profit margins are rapidly eroding are expecting credit support to meet their capital needs and continue production, Karadeniz said, “Our industry, especially the plastics sector, which is dependent on foreign sources for raw materials and wants to continue production and employment, is expecting support in terms of accessing financing. Today, many of our industrialists say that they have difficulty in accessing financing and that they are unable to produce.”
Difficulty in accessing financing causes sectors to shrink
The President of the umbrella organization PLASFED, who drew attention to the fact that companies have difficulty in sustaining their existence in an environment of high inflation and high interest rates, emphasized that the inability of producers and consumers to access financing has caused shrinkage in many sectors. Noting that companies are trying to survive by sacrificing profitability and investments, Karadeniz stated that the bill incurred so far for industrialists is quite heavy.
Growth and investment plans are being postponed
Karadeniz, who pointed out that companies having difficulty accessing financing have had to postpone their growth and investment plans for a while, said, “Companies are putting their investment and growth plans on the shelf in order to protect their current resources and minimize costs. Unfortunately, companies are experiencing one of their most unprofitable periods. The first sentence everyone says in all the meetings I attend is access to financing. The most important problem facing companies during this period is managing cash flow and funding working capital. If we cannot do these, we will put companies in a difficult situation.”
Karadeniz, who pointed out that the business world missed the global theme due to access to financing, inflation, cash flow, and changing regulations, drew attention to how critical it is to solve the financing problem of our companies in this period when the Turkish economy and global trade are reshaping.