Treasury and Finance Minister Mehmet Şimşek Evaluates Salary Increases and MTP

Treasury and Finance Minister Mehmet Şimşek made important evaluations regarding recent economic developments, the Medium-Term Program, and civil servant and retiree salary increases.

Medium-Term Program and Economic Policies

Treasury and Finance Minister Mehmet Şimşek made evaluations regarding recent economic developments and the Medium-Term Program (MTP). He stated that the MTP is binding for the public sector and serves as a roadmap for the private sector.

Stating that they maintain the three-year policy framework, Şimşek emphasized that the vast majority of the targets in the MTP have been met and there is no change in the policy framework.

Inflation Protection for Civil Servant and Retiree Salaries

Minister Mehmet Şimşek also made important statements regarding the January raise eagerly awaited by retirees and civil servants. He spoke clearly about the salary increases.

Şimşek stated that they have always granted raises to public employees and retirees at least equal to inflation and will continue to do so.

Disinflation Process and External Factors

Stating that their primary goal is disinflation, but that the process is not advancing at the desired speed, Şimşek said that external factors are influential.

He conveyed that the wartime environment and increases in commodity prices negatively affect inflation, and this impact is felt more intensely because inflation is high in Turkey.

Real Sector and Credit Support

Stating that the average interest rate on loans given to farmers is around 12 percent, Şimşek noted that the total amount of loans Eximbank will provide this year is 60 billion dollars.

Expressing that rediscount credits have been increased 17-fold since 2023, Şimşek said that working capital support will be provided to the manufacturing industry.