Session iii botswana presentation-oktay_kucukkiremitci_dbt

Development Bank of Turkey – Treasury DepartmentSodev – 19 October 2016

Adapting to Changes in Financial Systems, Policies and Structures

CEO Forum of the World Federation of Development Finance Institutions 02-04 November 2016Gaborone – Botswana

Dr. Oktay Küçükkiremitçi

DEVELOPMENT BANK OF TURKEYHead of Treasury Department

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“DFIs Sustaining Relevance in the Age of Disruption”


Excess Liquidity Conditions

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Development Bank of TurkeyWFDFI CEO Forum – 2-4 November 2016

Balance Sheets of FED,ECB and BOJ

are at historical high levels

ECB asset purchase programme:

Monthly purchases in public and

private sector securities amount to €80

billion on average. Policy interest rate is

still below zero.

BOJ will continue maintaining annual

target for increasing the monetary base

at about 80 trillion yen (USD 770 billion)

annually and charging a negative

interest rate of -0.1% and introduce

QQE with yield curve control.

US

ECB

BoJ


Turkey- in excess liquidty period

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050

100150200250300350400450

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8Q

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Total External Debt Private Sector External Debt Bank's External Debt

B. USD Turkey's External Debt Composition

GDP

718 b USD


Banking Sector in Turkey

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2.5

3.0

3.5

4.0

4.5

5.0

1/0

8

7/0

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1/0

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7/0

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1/1

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7/1

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7/1

6

Dev.&Inv. / Banking Sector%


Balance Sheet Composition of Development Bank Of Turkey (DBT)

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55

19

15

92

Energy Manufacturing

Sectoral Breakdown of DBT Loan* (%)

*Total Loan/Total Assets ratio of DBT is 83%

83.5%

14.2%

2.3%

DBT Liabilities

Foreign Long Term Credits Equity otherEURO USD TL

56.8

36.0

7.2

Currency Breakdown of DBT Loan (%)


Threat: Excess Liquidity May Dry Up

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25 basis point interest rate hike is expected in Fed’sDecember 2016 meeting

Brexit

Geopolitical risks


Weaknesses

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15.4

10

12

14

16

18

20

22

1990 2000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Turkey's Savings/GDP Ratio (%)


Measures

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0

2

4

6

8

10

12

14

16

18

20

2008 2009 2010 2011 2012 2013 2014 2015 2016

Pension Fund(total) Government Incentives

25% Government incentive forpension funds announced at 2013 in order to increasesavings.

Structural reform programme is prepared to boost economicgrowth especially in high endtechnology aiming to decreasecurrent acount deficit which has been a bottleneck in Turkisheconomy for long years.

Bln USD


Measures in DBT

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210% Paid in Capital Increase

Subsidized budget fundinjection

Key position in evaluation andcrediting of high tech industry

Key position in diminishingregional development disparity

Main intermediary of implementing governmentincentives


Thanks for listening

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Session iii botswana presentation-oktay_kucukkiremitci_dbt

Economy & Finance

Transcript of Session iii botswana presentation-oktay_kucukkiremitci_dbt