Latest news with #CeydaCaglayan
Zawya
2 days ago
- Business
- Zawya
Turkey's AJet to start flights to Syria's Damascus
Turkish Airlines subsidiary AJet said it will start flights to Damascus International from Istanbul and Ankara airports in mid-June. AJet said in a statement that flights from Istanbul's Sabiha Gokcen airport will begin from June 16. Flights will initially take place four times per week before operating daily from July, it added. Flights to Damascus from the Turkish capital Ankara will start from June 17, three-times per week, the carrier also said. Turkish Airlines resumed flights to Damascus in January after a 13-year suspension. Turkey, a close ally of the new government in Damascus, has pledged to support the country's reconstruction. Ankara has already helped with the improvement and maintenance of Syria's airports, the Turkish transport minister has said. (Reporting by Ceyda Caglayan, Writing by Ezgi Erkoyun; Editing by Kirsten Donovan)
Yahoo
29-05-2025
- Business
- Yahoo
Turkish firms see promise and peril in sanctions-free Syria
By Ceyda Caglayan ISTANBUL (Reuters) -Turkish companies see big opportunities in neighbouring Syria as a lifting of U.S. sanctions clears the way for investment in post-war reconstruction, but they remain wary of challenges, from lingering insecurity to banking and tax headaches. President Donald Trump's decision to end long-standing restrictions that severed Syria from the global financial system under former President Bashar al-Assad is seen as a lifeline for a nation decimated by 13 years of war. Construction, transportation and manufacturing firms from Turkey - a close ally of Syria's new administration after backing anti-Assad rebels - are poised to play a major role in repairing the damage, which the U.N. estimates at nearly $1 trillion. "The lifting of sanctions was just an urban legend, rumours for a time. But with Trump's announcement, everything has suddenly changed," said Omer Hot, a director at Istanbul-based Formul Plastik. Syria's Finance Minister Yisr Barnieh has called his country "a land of opportunities" and said the government plans to overhaul the tax, customs and banking systems to foster foreign investment and facilitate donor funding pledges. Interviews with officials from two dozen Turkish companies reflect both optimism over the potential of a previously sealed off market with vast needs and caution over rushing investments in a country where even money transfers can be difficult and banknotes scarce. Formul Plastik has received the first plastics orders from Syria, Hot told Reuters. He estimated that Turkish companies could end up with a quarter of Syria's reconstruction pie. But he is already facing hurdles. "Rather than banks, there are brokers such as exchange bureaus that mediate trade payments. This model will have to be used for now," Hot said. Other Turkish companies at the Buildex construction materials expo in Syria's capital Damascus this week said demand from Syrian counterparts was very high, even as they listed worries over tax rates, customs snarls and creaking transport infrastructure. "We are taking a calculated risk, let's say," said Burak Serim, regional export manager at construction materials producer Entegre Harc. SECURITY AND INVESTMENT In the wake of Assad's December ouster and the establishment of a government under new President Ahmed al-Sharaa, Turkey is already feeling economic benefits. Ankara has pledged to help rebuild Syria's economy, including by providing natural gas. And Ziraat, Turkey's top state bank, told Reuters it would step in to support its banking sector when conditions are right. Turkish firms Kalyon GES Enerji Yatirimlari and Cengiz Enerji are set to expand Syria's power grid under a new deal. Syria's trade with the rest of the world all but dried up during the war. But Turkish exports to its neighbour were up 37% year on year in the first four months of 2025, official data show. In an indication of its gaping needs for construction materials, Syrian imports of Turkish machinery more than tripled and non-ferrous metals doubled. Glass and ceramics were up 73%. Pledges of financing have, meanwhile, come in from wealthy Western nations, multilateral donors, and the likes of Saudi Arabia and Qatar. But for the most part, those are still largely promises. And Turkish company managers voiced concern there may not be enough for all the roads, bridges, dams and power plants that must be rebuilt. Syria's economy shrank dramatically during the war years. And with over 90% of its 25 million people now living below the poverty line, according to U.N. agencies, the government has scant resources. Volkan Bozay, chief executive of the Turkish Cement Manufacturers' Association, told Reuters that much hinges on which lenders finance the reconstruction projects but added that Turkish companies would play a major role no matter what. "It is out of the question that we will not take advantage of the opportunities," he said. Beyond construction, Turkish manufacturers are also eyeing Syria as a possible hub for low-cost production. "Lower production costs in Syria are an advantage," said Ahmet Oksuz, a board member at Turkish textile manufacturer Kipas. "But Turkish and Syrian authorities should coordinate to establish organised industrial zones that will ensure entirely safe areas for manufacturers," he added. Questions of security in a country still awash with arms where the new central government wields only tenuous control remain at the top of the list of concerns for many would-be investors. Hakan Bucak, former Turkish-Syrian business council board director, said Syria will likely need six months to ensure security and set up bureaucratic systems. "Security risks should be fully eliminated and investors need to feel it," said Bucak, who is already looking to open a quarry near the northern Syrian city of Aleppo. "If we feel safe, we have plans to invest."
Yahoo
28-03-2025
- Business
- Yahoo
Turkish companies 'paying the bill' as political crisis roils economy
By Ebru Tuncay and Ceyda Caglayan ISTANBUL (Reuters) - Turmoil unleashed by the arrest of Turkey's leading opposition figure last week has sent shockwaves through the private sector, forcing companies to rethink strategy and dig in for a period of uncertainty and potential economic instability. The detention of Istanbul Mayor Ekrem Imamoglu, who leads long-serving President Tayyip Erdogan in some polls, has provoked the largest anti-government protests in a decade, leading to mass arrests and international condemnation. The move also sent the lira currency to a record low, fuelling a sell-off of Turkish assets that has destabilised company balance sheets and driven up already high borrowing costs. Company officials told Reuters that Turkish businesses across sectors were scrambling to reassess risk, with some already pausing planned investments and slashing budgets. "The industrialists now have to pay the bill for a crisis they did not cause," said Seref Fayat, chairman of System Denim, which manufactures garments for leading Western brands and exports them to Europe and the United States. Fayat, who also heads a garment industry lobby group, said his credit costs have spiked due to the market turmoil. He had been drawing up budgets for a second-half expansion of his business in anticipation of an expected rebound in customer demand from Europe. "We immediately shelved these plans following the latest developments," he said. The lira has recovered somewhat after touching a record low of 42 to the dollar, but only after the central bank stepped in to prop up the currency. And businesses worry more pain is on the way. Expectations of declining inflation and lower interest rates following the adoption of an orthodox economic programme that had promised Turks future relief after years of soaring prices and currency crashes, now seem in doubt. In an unscheduled meeting last week, the central bank raised its overnight lending rate by two percentage points to 46%. According to information provided to Reuters by bankers, short-term commercial loan interest rates have increased from an average of 42-43% to 52-53%, with some rates as high as 60%. Morgan Stanley now forecasts any cuts to the central bank's policy rate will be shelved until June. And Goldman Sachs said it expected a hike in the policy rate by 350 basis points. 'EVERY COMPANY NEEDS A PLAN' "The latest developments will affect companies' investment expenditures the most," Hakan Kara, a former central bank chief economist now on faculty at Bilkent University in Ankara, said on X, pointing out that investment had already been slowing. "This will probably become even more apparent in the short-term." The government has said the recent economic turmoil would be limited and temporary. But some company officials worry the crisis may only be beginning. Elections are set for 2028 when Erdogan, who has dominated Turkish politics for more than two decades, will reach his term limit. Many, however, see the arrest of Imamoglu, who was jailed on Sunday pending trial for graft, as an early indication he could seek to remain in power, either through an early election or constitutional changes that would likely face public opposition. Mehmet Buyukeksi, a board member at Ziylan, which operates in retail and real estate, said expectations of a more positive business outlook in Turkey based on government efforts to right the economy as well as strengthening demand were now less certain. Improvements, including lower borrowing costs, that he had been expecting to see in July, he is now pushing back to September, he said. And there are other knock-on effects. One company official said some firms were carrying out human resources risk assessments, worried that they could face blowback if their employees participate in protests or share political content on social media. Some conglomerates are reevaluating their risks in terms of exchange rates, inflation, funding costs and are significantly increasing the likelihood of negative impacts in their assessments, the company official said. And a mergers and acquisitions consultant said that, while some foreign firms might look past criticisms that the Turkish government's actions are growing increasingly undemocratic, few will pour investment into an economically fraught environment. "Everyone will re-do their calculations and books," said Fikret Kaya, the general manager of plastics and industrial equipment manufacturer Kayalar. "We have had to make monthly evaluations that we used to make quarterly. I think every company needs to make a plan."
Yahoo
19-02-2025
- Business
- Yahoo
Turkey to export 15,000 tonnes of eggs to US amid bird flu disruptions
By Ceyda Caglayan ISTANBUL (Reuters) - Turkey has begun exporting around 15,000 tonnes of eggs to the United States, where an ongoing outbreak of bird flu disrupted supply, sent prices soaring and led to talks with other producers, a leading sector official said on Wednesday. Ibrahim Afyon, chairman of the Egg Producers Central Union (YUM-BIR) in Turkey, told Reuters that shipments began this month and will continue until July. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. "The export will take place through our member companies with the required authorizations, while two firms will coordinate the process," Afyon said. "A total of 15,000 tonnes of eggs — equivalent to 700 containers — will be shipped." The U.S. has been working to contain the spread of bird flu, which was first detected in dairy cattle in Texas last March and has since spread to multiple states. The virus has infected nearly 70 people since April, including one fatal case, primarily among farm workers exposed to infected poultry or cattle. An outbreak in poultry that began in 2022 has wiped out about 160 million chickens, turkeys and other birds, contributing to egg shortages. In response, the U.S. Department of Agriculture (USDA) has granted conditional approval to animal health company Zoetis for the use of a bird flu vaccine in poultry. The agency is also rebuilding a stockpile of vaccines tailored to the current strain affecting commercial flocks and wild birds. Faced with supply constraints, U.S. firms have sought alternative import markets, leading to negotiations with Turkish producers, Afyon said. He said the deal is expected to generate around $26 million in export revenue. Turkey ranks among the world's top 10 egg exporters, Afyon added.
