Sabancı Holding Financial Services Cluster Leader Haluk Dinçer made evaluations about the holding and the country’s economy in Bloomberg HT publication.
Asked what are the risks that will affect the private department the most for 2023, Dinçer said, “First, there is the uncertainty of the election. Secondly, the exchange rates are actually kept at a certain level, there are also important difficulties and problems in financing the stability of payments. It does not seem sustainable, vulnerabilities are the subject of the word. There are difficulties on the side.
Third, of course, there are risks from the global economy. The policies implemented by central banks abroad and the increase in interest rates bring significant costs in funding. The Treasury currently borrows over 9, which is very high. “Our CDS is very high,” he said.
“Unfortunately, we did not see positive results”
Stating that there was a relatively slowing economic growth in Turkey in the third quarter, Dinçer said, “There is a Turkish economic model, but unfortunately we have not seen the positive results of this yet. We have seen a huge increase in inflation. There is also a negative aspect on the exchange rate. The Turkish lira has become very worthless. “There is inflation, and beyond this inflation, there is a tremendous decline in our purchasing power in foreign currency. Very low interest rates, even negative real interest rates, were applied to deposit rates. There were significant wealth losses here, and we will see the effects of this over the years,” he said.
“We continue our investments”
Dinçer stated that 2022 was realized in line with the medium-term goals for Sabancı Holding and they continued their investments.
Dinçer stated that there were some negative results due to the negative impact of the damage costs of the increased inflation due to the business model on the Aksigorta side, but said that they looked at the year positively that they would be able to compensate for them in 2023.
“Insurance companies want to take risks”
Stating that the prices applied in the first half of 2021 are not true, Dinçer said, “When you look now, the prices are very high, but the cost increases are higher than them, so we can say that it is actually balanced.
There has been a clear increase in premiums in traffic and motor insurance, and this has reached a normal level. After that, it is necessary to foresee an increase in the level of inflation.
Today’s traffic insurance levels are regulated, a ceiling price is applied, and even at this price, some insurance companies do not want to take risks. “There is uncertainty in the market because companies cannot predict the next 12 months,” he said.