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auctions were ended to enable overnight
interest rates to occur close to the upper band
of interest rate corridor, which is 7.75%, the
maximum amount of funding provided with
one-week repo tenders decreased from US$
10 billion to US$ 6 billion, and the amount of
funding provided to the market maker banks
was also reduced.
In 2014, the CBT will continue to apply a
monetary policy that oversees price stability
and financial stability together. In December
2013, the CBT decided not to use the one-
week repo rate as a policy interest rate; it
started to use interest rates called marginal
funding rate (overnight lending rate), stable
funding ratio 1 (one-week repo auction
rate) and stable funding ratio 2 (overnight
lending rate provided to market maker banks)
together with primary tools beginning in 2014.
Initiating its exit strategy with its monthly US$
10 billion reduction decision in the last month
of 2013, the Fed’s 2014 monetary policy will
continue to affect capital flows to developing
countries. In 2014, the CBT will continue to
apply a tight monetary policy depending on
the developments in foreign exchange and
interest rates, in a similar manner in the
second half of 2013.
Budget deficit: TL 18.5 billion
Amounting to TL 29.4 billion in 2012, the
budget deficit decreased to TL 18.5 billion in
2013. In the period, the central government
budget expenditures increased 12.7% over
the previous year, while the budget revenue
rose by 17.1%. The share of the central
government budget deficit in GDP, which
was 2.1% in 2012, is expected to decline to
1.2% in 2013 according to the Medium Term
Program (2014-2016); in 2014, this ratio is
expected to rise to 1.9%. The primary surplus
increased considerably by 65.9% on an
annual basis during 2013. The primary surplus,
which was expected to be TL 19 billion at
narrowing the interest rate corridor. At the
end of May, the emergence of the possibility
that the Fed’s reduction in monthly US$ 85
billion in asset purchases might come earlier
than expected resulted in weakening capital
inflows to developing countries and the
depreciation of the Turkish lira.
These developments in both international
and domestic markets, has led to a change
in the monetary policy stance of the CBT.
Starting in May, the CBT followed a more
cautious monetary policy; in the second half
of the year, the CBT changed the composition
the liquidity injected into the market and
tightened its liquidity policy while it increased
interest rates. Despite weakening capital
inflows, the ongoing rapid credit growth and
the upside risk on inflation, the CBT as of
July, increased the upper band of the interest
rate corridor by 125 basis points to 7.75%
while keeping the reserve requirements ratio
and ROC the same. In the last quarter of the
year, the CBT continued to take steps toward
tightening its policy. The number of days with
additional monetary tightening was raised
from one to two in a week, the monthly repo
2013 IN THE WORLD AND IN TURKEY
Recent developments have led to a change in the
monetary policy stance of the CBT. Starting in May,
the CBT followed a more cautious monetary policy.
CBT ınterest rates
(%)
02/2012
12/2012
04/2012
02/2013
06/2012
04/2013
08/2012
06/2013
10/2013
10/2012
08/2013
12/2013
13
11
9
7
5
3
Average Cost of Funding
Lending
Borrowing
One-Week Repo Auction
Source: CBT
HIGH
GOALS
In 1986, in order to contribute
to the development of
sports in the country, Güneş
Sigorta Spor Kulübü Derneği
(Güneş Sigorta Sports Club
Association) started its
activities. It soon became the
first club to rise from a local
league to the A1 Women’s
League. Güneş Sigorta joined
forces with the Ankara
VakıfBank team and changed
its name to VakıfBank
Güneş Sigorta Sports Club.
Consequently, the team that
was to become the pride of
Turkey in sports in later years
was established.
I
G