PLASFED President Ömer Karadeniz: Turkish Industrialists Struggling with Access to Finance are Losing Ground

Foreks - As access to finance becomes increasingly difficult in Turkey, companies are anxiously monitoring the rising costs of financing. This situation is particularly acute in the industrial sector. Manufacturers are searching for ways to cope with challenges in accessing finance due to rising raw material and energy costs.

Ömer Karadeniz, Chairman of the Plastics Industry Federation (PLASFED), stated that Turkish manufacturers are struggling to find sufficient support in terms of accessing finance. He remarked that Turkish manufacturers facing capital shortages are at a point where they may need to reduce production, emphasizing that if this issue persists, the risk of production decline in the industry will increase. Karadeniz highlighted that businesses with rapidly eroding profit margins are seeking credit support to meet their capital needs and continue production. He stated, “Our industry, particularly in the plastics sector, which is dependent on imported raw materials and wishes to maintain production and employment, is awaiting support in accessing finance. Today, many of our manufacturers report difficulties accessing finance and say they can no longer produce.”

Challenges in accessing finance are causing sectors to shrink. The PLASFED president noted that high inflation and interest rates are making it difficult for companies to sustain their assets, stressing that the inability of both producers and consumers to access finance has led to contractions in many sectors. Karadeniz pointed out that companies are trying to survive by sacrificing profitability and investments, emphasizing that the cost of the situation thus far has been quite heavy for manufacturers.

Growth and investment plans are being postponed. Karadeniz indicated that companies struggling to access finance have had to postpone their growth and investment plans for some time. “Companies are shelving their investment and growth plans to preserve existing resources and minimize costs. Unfortunately, businesses are experiencing one of their least profitable periods. In all meetings I attend, the first sentence everyone says is about accessing finance. The most significant issue for companies at this time is managing cash flow and funding working capital. If we cannot address these, we will put companies in a difficult position,” he explained.

Karadeniz pointed out that the business world is missing the global theme amid issues like access to finance, inflation, cash flow, and changing regulations, highlighting how critical it is to solve our companies' financing problems during this period when the Turkish economy and global trade are being reshaped.