Production impossible with the current interest rates

       In a former annual research concerning the biggest 500 companies of the country the Istanbul Chamber of Commerce (ISO) had announced that these companies receive 53% of their incomes from interest revenues. This year's study on second largest 500 Small and Mid - Size Businesses (KOBI) states that 70% of KOBI incomes are met by interest rates, which means that Turkish companies choose surrendering to high rates instead of making production.
       A 146% rate level reached in a recent tender is an indicator that Turkey won't give up its love of high rates. The level of interest rates in Turkey, where there is a 62% inflation, is an easy way of earning money that attracts companies.
       Data on reel economy released in yesterday's press conference held by State Minister Isin Celebi were very striking. According to the figures by the State Planning Board concerning the 1999 Macro Targets and Policies: In the first quarter of 1998 production production increase rates plunged in the industrial and service sectors. Due to this, Gross National Product, which was 9.0% in the first quarter, fell to 4.0% in the second three - month period.