How Was the Markets Reaction to the Reform Package?

How was the markets reaction to the reform package? Experts evaluated the issue at Bloomberg HT.

President Recep Tayyip Erdogan announced the economic reform package yesterday. In his speech about the reform package, President Erdogan stated that tax exemption will be introduced for 850 thousand small tradesmen who struggled during the epidemic period, the Bond Guarantee Fund will be established for the bond issues of real sector companies and two new structures will be established under the chairmanship of the Vice President and the Minister of Treasury and Finance in order to monitor the developments in the economy. Bilgi University CEFIS Research Director Özlem Derici Şengül, DEİK President Nail Olpak, TESK President Bendevi Palandöken and KPMG Turkey Company Partner Emrah Akın evaluated those who are curious about the economic reform package on Bloomberg HT channel. Özlem Derici stated that the reform package was focused on the needed points in the reform package compared to previous economic reform studies. In the package in question, Derici stated that it is an approach that emphasizes saving in public finance and stated that we can see a more coordinated structure for macroeconomic stability. DEİK President Nail Olpak stated that in the reform package, economic stability, sustainable growth and simplification in tax are emphasized and these points are very important. Stating that an investor examines two important conditions in the country where he will invest, Opak explained that the first of them should have a legal system in which fast fair and existing gains are protected, and the second should have a predictable economic system. Opak said that Erdogan touched on these two important factors in the content of the economic reform package.   Tax Exemption for Small Tradesmen Evaluating the reform package, TESK Chairman Bendevi Palandöken made the following comment regarding Erdogan's announcement that 850 thousand tradesmen will be exempted from income tax: "If the 20 percent tax is lowered, it will make our job easier." Stating that the regulations will result positively according to their estimates, Palandöken explained that the reform package will have positive effects in the fight against unemployment and that the realization of loans supported by the Credit Guarantee Fund (KGF) will contribute to regional employment. KPMG Turkey Company Partner Emrah Akın noted that the package emphasizes the informal economy. Pointing out Erdogan's tax exemption for small businesses, Akın said that at the end of 2020, 158.8 billion TL of income tax was collected; He stressed that tax exemption will not be a big burden on the budget.       Source: Bloomberg HT