High Interest Environment and Financing Problems Challenge the Chemical Industry
While current financing costs negatively impact industrial production and new investments, the chemical industry managed to increase its exports in the first eight months.
Vefa İbrahim Aracı, President of the Istanbul Chemicals and Chemical Products Exporters' Association, stated that the high interest environment poses a risk for both producers and banks and hinders investments.
Effects of Financing Costs
The spiral of problems in production, investment, and exports caused by the high interest rate environment continues to challenge industrialists. Industry representatives voiced businesses' problem of accessing financing.
Vefa İbrahim Aracı stated that high interest rates pose a risk for both borrowers and lending banks, and that this situation is unsustainable.
Export Figures of the Chemical Industry
Despite all challenges, the chemical industry, one of Turkey's most important exporting sectors, recorded growth in the first eight months compared to the same period of last year.
The sector's eight-month exports increased by 4.6 percent, reaching 22.8 billion dollars.
New Markets and Promotion Proposals
Growing consumption needs in neighboring countries such as Iraq and Syria continue to create new foreign trade opportunities for the sector.
Exports to Syria reached 280.4 million dollars in the first eight months, while trade toward Iraq reached 693.9 million dollars.