Ziraat Bankası Genel Müdürü: Finansmanın Maliyeti Enflasyonun Düşüşüyle Normalleşecektir! Ziraat Bankası Genel Müdürü ...
What Alpaslan Çakar said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Alpaslan Çakar, General Manager of Ziraat Bank, discussed the 5th Agricultural Ecosystem Meeting in Istanbul, which the bank has organized since 2021. He said the event brings together farmers from all 81 provinces, producers, cooperatives, academics, and government officials to improve agricultural practices. Çakar stated Ziraat Bank has extended 1 trillion TL in agricultural loans to 1 million farmers, with 90% subsidized; the state covers 70% of interest on subsidized loans and 100% on 23% of them. He noted agriculture is exempt from central bank lending limits. On the banking sector, he said the NPL ratio is around 2.8% and capital adequacy is above international standards. He expects inflation to decline in the second half of the year, which should lower financing costs. He pushed back on claims of a credit access problem, saying lending is growing above inflation, though costs remain high. He forecast return on equity at the level of inflation this year.
Key takeaways
Ziraat Bank has extended 1 trillion TL in agricultural loans to 1 million farmers, with 90% subsidized.
The state covers 70% of interest on subsidized agricultural loans and 100% on 23% of them.
The banking sector's NPL ratio is around 2.8%, with capital adequacy above international standards.
Çakar expects inflation to decline in the second half of 2026, making financing costs more favorable.
2:40Which areas will you prioritize in terms of financing going forward?
5:16In parallel, in which areas do you think the developments in monetary policy will create relief in access to credit, and conversely, do you think that with the tightening, credit access will become more extended? In which areas?
7:45Should industrialists expect financing packages that will make them happy?
9:20How do you expect or foresee 2026 to finish in this regard?
Hello everyone. The 5th Agricultural Ecosystem Meeting is taking place in Istanbul. Next to us we have the General Manager of Ziraat Bank, Mr. Alpaslan Çakar. We will be asking him questions about the agricultural sector, this summit, and banking. First of all, welcome to our broadcast. If you wish, let's start from this summit. Specifically, we would appreciate it if you could evaluate the main themes targeted at this year's summit.
Thank you. I wish you good broadcasts. We have been organizing this Agricultural Ecosystem Meeting since 2021. This year we are holding the 5th one. We named it ecosystem. Why ecosystem? We wanted to evaluate a mechanism that includes all stakeholders related to agriculture. Who is here? Today we have farmers from all 81 provinces, producers, agricultural cooperatives, academics, the agricultural industry. We are here as bankers and financiers. Officials from the Ministry of Agriculture are here. The insurance sector is here as part of agricultural insurance. Essentially all stakeholders are here. What is our goal? Our goal is that when our producer comes here and returns to their enterprise, if they can change something in their process or work for the better as a result of the panels, seminars, or one-on-one contacts here, if awareness is created, we are happy. In that sense, we see that we are getting the right results. Because truly, everyone who comes here returns with a spark. They can see much better examples of practice. They can see the academicians' evaluations for the future, or they can make business connections through direct relationships. So we think this is a very important and high-quality platform. Because before, craftsmen had such an organization. Exporters had one. Actually everyone had one, but farmers did not. As Ziraat Bank, a bank that has financed agriculture for 163 years, we said this is our job. That's why we have been organizing it for 5 years. Our President, may he live long, has always honored us. Today he will also attend in the afternoon and address our farmers. We truly believe this platform is very productive for the country, our bank, our producers, and the agricultural sector. Let me put it simply: from morning to evening, all stakeholders from 81 provinces talk only about agriculture. They discuss how to do agriculture better. That alone is a very valuable benefit.
So when it comes to agriculture, the need for financing stands out, just like in other sectors. How much support have you provided to agriculture so far, especially in the first half of this year? How much growth in these loans should we expect in the next 6 months? Also, there are sub-segments within agriculture. Which areas will you prioritize in terms of financing going forward?
Yes, thank you. Of course, agriculture is a very important issue. Especially the pandemic, wars, geopolitical tensions, and disruptions in supply chains have shown us how vital food supply security is. Looking at the whole world, last year and previous years, we experienced periods where agriculture was decisive. Especially in our country, last year we saw how drought and frost made food inflation very impactful on overall inflation. Thank God, this year is a bit better. Therefore, financing in agriculture is also very important. For example, although the Central Bank, the authority, has some adjustments under macroprudential measures regarding sectors and total lending processes, agriculture is outside of these. There is no upper limit on lending in the agricultural sector, so agriculture is a bit more comfortable. It is an area where access to financing is easy. As Ziraat Bank, as I said, we have been doing this for 163 years. As of today, we have extended 1 trillion TL in agricultural loans to 1 million farmers. 90% of these loans are subsidized. And of these subsidized loans, 70% of the interest is covered by our Ministry of Treasury and Finance, that is, by our state. This is very important. Additionally, for 23% of these subsidized loans, all of the interest is covered by the state. Of course, what are the priorities? We actually finance all areas in this ecosystem: crop production, animal production, irrigation systems, mechanization – we finance every aspect. But within the 28-item subsidy decree, the state gives priority to certain products, sectors, and basins, and where it gives priority, it sets the subsidy rate at 100%, meaning it covers all interest. In areas with less need, the subsidy rate is kept more moderate at 50% or 70%. That is already determined by the decree. We are one of the implementers of this in the market and the field, and we are successful in that regard. Thank God.
Thank you very much. Before finishing, I would like to get a general assessment from you because we don't often get to catch you. But in the second half of the year, what kind of performance do you expect in the banking sector? Especially today, inflation figures were announced. In parallel, in which areas do you think the developments in monetary policy will create relief in access to credit, and conversely, do you think that with the tightening, credit access will become more extended? In which areas?
6 more exchanges in this transcript
Sign in free to read the rest of this interview. No card required.
