VKF_FRAE_2017

41 VakıfBank Annual Report 2017 The Weighted Average Funding Cost increased from 8.3% in the beginning of the year to 12.75% at its end. provide funds only through the Late Liquidity Window, the Weighted Average Funding Cost increased from 8.3% in the beginning of the year to 12.75% at its end. CBRT also took non-interest rate measures to halt the rise in the exchange rate. To this end, the foreign exchange facility upper limit of the Reserve Option Mechanism (ROM) was reduced from 60% to 55%, and all tranche intervals were reduced by 5 points. In addition, the CBRT began Turkish lira-settled foreign exchange sale auctions at negotiated maturity terms, and allowed the repayment in TL of export rediscount loans generating foreign exchange revenues, which mature until February 1, 2018. Due to the rise in inflation and the volatility of the exchange rate, the CBRT is expected to maintain its tight monetary policy stance for a while in order to ensure and maintain price stability. CENTRAL GOVERNMENT BUDGET DEFICIT/GDP (%) Source: Undersecretariat of Treasury * Expectation ** Objectives of the Medium Term Program for 2018-2020 2020 ** 2009 2010 2011 2012 2013 2014 2015 2016 2017 * 2018 ** 2019 ** Central government’s budget deficit was TL 47.4 billion in 2017. CBRT INTEREST RATES (%) Source: CBRT 6 8 10 12 14 12.2017 12.2014 09.2014 03.2015 06.2015 09.2015 12.2015 03.2016 06.2016 09.2016 12.2016 03.2017 06.2017 09.2017 1 Week Repo Auction Late Liquidity Window Lending Weighted Average Funding Cost Interest Rate Corridor 5.3 3.5 1.3 1.9 1 1.1 1 1.1 1.5 1.9 1.9 1.6