VAKIFBANK
ANNUAL REPORT 2015
34
With a view to expanding the investor base and
diversifying the borrowing instruments,
the Bank
continued in 2015 to issue lease certificates, which
were first issued in 2012 and started being regularly
offered to the domestic market from 2013 onwards.
CENTRAL GOVERNMENT BUDGET DEFICIT/GDP
(%)
Source: Undersecretariat of Treasury
* Objectives of the Medium Term Program for 2015-2017
6
5
4
3
2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016* 2017* 2018*
2007
1.6
1.8
5.5
3.6
1.4
2.1
1.2
1.3
1.1
0.7
0.6
0.4
Following the Fed decision, CBT raised the
interest it pays on dollar denominated
required reserves, reserve options and time-
free accounts from 0.24% to 0.49%. At the
december meeting of its Monetary Market
Board, Central Bank of Turkey kept the policy
rate unchanged at 7.50%. Besides, it announced
that, if a permanent reduction is observed in
market fluctuation following the Fed’s rate rise,
it would measures of simplification from January
2016 onwards. At its december meeting, CBT
emphasized once again that its monetary policy
decisions in the coming period would depend on
the inflation outlook and that the tight monetary
stance would continue.
In 2016, the trajectory of the inflation,
evolution of the exchange rate and geopolitical
developments are set to play a key role in CBT’s
policy.
BUDGET BALANCE SHOWED A DEFICIT OF
TL 17.8 BILLION IN DECEMBER 2015
The central administration budget balance
showed a deficit of TL 17.8 billion in December
2015, versus TL 11.3 billion in December 2014.
As a result, the central administration budget
deficit was TL 22.6 billion in 2015 versus
As such, the budget deficit could soar above
the Medium Term Program’s objective in 2016.
On the other hand, the primary surplus for
2015 was 14.1% higher than in 2014. A key
component of debt management efforts, the
primary deficit was seen to climb from TL 26.5
billion in 2014 to TL 30.4 billion in 2015.
TL 23.4 billion in 2014. The central
administration’s budget revenues grew by
12.8% in 2015 over the prior year, even as
budget expenditure rose by 13.6%. The ratio of
the central administration budget deficit to the
GDP, which was 1.3% in 2014, is expected to
fall to 1.1% in 2015, and to drop further to 0.7%
in 2016 -in accordance with the Medium Term
Program (2016-2018). Nevertheless, the fact
that the state will cover certain expenditures
related to the 30% minimum wage increase is
expected to create an additional burden on the
budget.
THE WORLD AND TURKEY IN 2015
