Transcript 2006 Revenue Growth

By Steve Bideshi
Citibank A.Ş Türkiye
Content
1) Rising FDI environment world wide
2) Competition with other EM (FDI)
3) Turkey moving to build FDI
4) Why Turkey?
5) Why Turkish Banking Sector?
6) Moving Forward (Strategies and Efforts)....
1
Worldwide Phenomenon
 FDI inflows are growing worldwide
 Regulatory regimes more liberalized in many countries
 Intense competition, market seeking and search for
lower costs
 Intensified policy and promotion efforts by countries
 Opening of major new markets e.g. BRIC countries
 For the first time we have witnessed a big movement
from EM to developed markets
2
Competition
 Staying competitive will require constant flow of new ideas
and smart work
 China, India new ‘centers of gravity’; in addition to major
developed countries Asia and Central East Europe remain
highly competitive.
 Turkey competes with BRIC Countries, Eastern Europe,
and with traditional markets like USA to attract FDI..
3
FDI as a % of GDP
40,0
35,0
30,0
Turkey
Turkey
25,0
Bulgaria
Bulgaria
20,0
15,0
Romania
Czech Rep.
Romania
Hungary
10,0
5,0
0,0
2003
Russia
Czech Rep.
Brazil
Hungary
Russia
Brazil
2004
2005
2006
4
Turkey Moving to Build FDI-2006

Over the past two years, Turkey has enjoyed an unprecedented inflow of
foreign investment

FDI financed almost 40% of Turkey’s external deficit in 2006.

Promotion: Investment Advisory Council
70.000
FDI (US$ mn)
60.000
50.000
40.000
30.000
20.000
10.000
na
Ch
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Tu
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Ru
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Br
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Ro
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In
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Po
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Hu
ng
ar
Bu
lg
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ia
Cz
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Re
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bl
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0
5
Why Turkey
 It’s economic size
 Significant momentum to grow
 Dynamism
 Quality of labor source and higher productivity
 Young and dynamic population
 Political stability
 EU reform process where significant progress has
been made and continuing.
6
Why Turkish Banking Sector
 Strong and Respected Regulator
 Sector's renewed strength after five years of
restructuring
 Banking Sector has vast Management talent
 Improving Efficiency
 Stronger capitalization
 Reduced market risk
 Stronger liquidity
 Under banked
7
Moving Forward
Moving forward in a competitive global environment demands:
 Strategy + Structures
 Shared Vision 2007 – 2027 and Targets
 Government Endorsement and Support
8
More Specifically
 Working with existing investors.
 Investment environment: continue reform…
 Invest in Education
 Judicial Reform
 Keep EU negotiation process alive
 Maintain privatization and structural reforms
 Continue Fiscal Discipline
 Political Stability
 Consistent Monetary Policies and Discipline
 Incentives the Long Term FDIs
 Greenfield investment: make it a priority
 Strengthen Existing Capacities
9