CENTRAL BANK OF THE TURKISH REPUBLIC OF NORTHERN CYPRUS QUARTERLY BULLETIN ISSUE: QI

Transcription

1 CENTRAL BANK OF THE TURKISH REPUBLIC OF NORTHERN CYPRUS QUARTERLY BULLETIN ISSUE: QI

2 D I S C L A I M E R The statistical tables on the selected balance sheet items of banks appearing on the Quarterly Bulletin of the Central Bank of the Turkish Republic of Northern Cyprus (TRNC) are drawn up by using the temporary financial statements. The Central Bank of the TRNC does not guarantee the accuracy of the financial statements included in the Quarterly Bulletin and does not accept any responsibility regarding these statements, which are based on temporary data submitted by banks and released solely for information purposes. The Central Bank of the TRNC has right to make any changes partially or completely or to add new data in the statements included in the Quarterly Bulletin without announcing in advance. Any periodic information in any issue of Quarterly Bulletin can be changed as a result of updating in the forthcoming issues. Information included in the Quarterly Bulletin can be published without permission by giving reference. This bulletin was produced and published under the responsibility of the Board of the Directors of the Central Bank of the TRNC. This bulletin is published on the official website of the Central Bank of the TRNC The Central Bank of the TRNC, Adres Bedreddin Demirel Avenue, Nicosia TRNC Postal Address POB. 857, Lefkoşa-TRNC Telephone (10 Lines) Fax Telex Website info@kktcmb.trnc.net Quarterly Bulletin 2007/Q1 1

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4 C O N T E N T S Sayfa I. GENERAL ASSESSMENT 7-10 II. LEGAL ARRANGEMENTS III. ECONOMIC DEVELOPMENTS 15 Economic Program Targets for Sectoral Added Values and GNP Targets 17 General Balance of the Economy Balance of State Revenues and Expenditures (TRY) 19 Balance of Payments 20 Inflation Consumer Price Index ( = Basic Year) 21 Consumer Price Index ( = 100 Basic Year) Effects on Rate of Change Over Previous Month 22 Budget Budget for the Financial Year Budget Revenues for the Financial Year Budget Expenditures for the Financial Year Functional Classification Budget Expenditures for the Financial Year Financial Classification Budget Expenditures for the Financial Year Economical Classification Foreign Trade Exports 25 Yearly 25 Turkey and 3.rd World Countries 25 Share of Turkey and 3.rd World Countries in Total Exports (%) 25 Quarterly Bulletin 2007/Q1 3

5 Imports 26 Yearly 26 Turkey and 3.rd World Countries 26 Share of Turkey and 3.rd World Countries in Total Imports (%) 26 Imports by Countries (US$) 27 Exports By Countries (US$) 27 Tourism Bed Capacity by Months 28 Bed Capacity by Regions 28 Number of Arrivals (Monthly) 29 Number of Arrivals by Port of Entry (%) 29 Number of Arrivals From South Cyprus (Excluding TRNC Citizens) by Months Occupancy Rate of Tourists in Tourist Accomodation Establishments (Monthly) Occupancy Rate by Regions 31 IV MONEY AND BANKING STATISTICS Central Bank Balance Sheet Items of the Central Bank of the TRNC 34 Liquid Assets of the Central Bank of the TRNC 34 Credits to Banking Sector by the Central Bank of the TRNC 34 Deposits with the Central Bank of the TRNC 35 Exchange Rates of the Central Bank of the TRNC 36 Cross Rates of the Central Bank of the TRNC 36 Ratios On Bills Rediscounted of the Central Bank of the TRNC 37 Required Reserve Ratios 38 Liquidity Ratio 38 Over Drawn Cheques 39 Interest Rates on TRL and FX Reserve Requirements Applied by the Central Bank of the TRNC Interest Rates on Bank Deposits Applied by the Central Bank of the TRNC Quarterly Bulletin 2007/Q1 4

6 Banking Sector Consolidated Balance-Sheet of the Banking Sector 42 Sectoral Distribution of the Credits and the Maturity Distribution of the Deposits in Banking Sector in Brief 43 Credits in Banking Sector 44 Sectoral Distribution of the Credits in Banking Sector (TRL/TRY) Sectoral Distribution of the Credits in Banking Sector (FX) Distrubution of the Credits in Banking Sector by Currencies Deposits in Banking Sector Distrubution of the Deposits in Banking Sector by Currencies Interest Rates on TRL/TRY Deposits Applied By Banks (Minimum & Maximum) Interest Rates on USD Deposits Applied By Banks (Minimum & Maximum) Interest Rates on EURO Deposits Applied By Banks (Minimum & Maximum) Interest Rates on GBP Deposits Applied By Banks (Minimum & Maximum) Money Supply 54 V OTHER Licensed Banks Operating Under Banking Law 57 Minimum Wage 58 Quarterly Bulletin 2007/Q1 5

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8 I. GENERAL ASSESSMENT Quarterly Bulletin 2007/Q1 7

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10 The content of Q1-07 Bulletin is issued with some additional new topics. New topics include recent economic developments, data on money supply and other subjects of special interest for financial sector. Economic development section will provide data with actual quarterly figures and some data from information published at Program Targets for 2007 on a yearly basis. Data on money supply is issued in detail on our website monthly and will be summarized in Quarterly Bulletins. An evaluation of the bulletin in brief is observed underneath within the context stated above: 1. Real growth rate of GNP is targeted to remain unchanged as in GNP was targeted to expand by 7.1 % in real terms and is targeted to accelerate at the same pace in At sectoral level moderate deceleration on real growth rate is foresighted in agricultural and industrial sectors whereas acceleration is projected in all other sectors. 2. It has been estimated that total resources will increase 6,3 % by the end of According to figures published at the Program, contribution of current account deficit to GNP is expected to be negative 0,2 %.The increase in total resources is expected to be anticipated by an increase in total consumption and public fixed capital investments. Public disposable income is envisaged to increase by a point and reach to 21 % of GNP. 3. Unlike from 2006, the balance of state revenues and expenditures indicates an equilibrium. An increase of 11,6% real change is calculated for budget revenues and a rise of 9,4 % real change is calculated for budget expenditures. As a result of these projections it is expected that the budget will be in balance by year end. 4. Prices has changed by 3,5 % in Q Pressures were generated by food and non-alcoholic beverages along with other goods and services. In contrast clothing and footwear as well as entertainment and culture prices declined during the quarter under consideration. 5. Actual figures generated for the first quarter of fiscal year 2007 has been in favour of revenues. In Q1 of 2007 revenues generated reached to million TRY, however expenditures were million TRY. As a result, surplus of 41.7 million TRY was attained. 6. Foreign trade balance has contracted by 2,2 % in Q when compared to corresponding period in During the first quarter of 2006 imports reached to 300,7 million USD whereas exports were merely 21,7 million USD. As a result negative trade balance of 279,0 million USD realized. In Q imports slightly rose to 301,9 million USD, meanwhile exports grew a little faster than imports and reached to 29,3 million USD, mainly attributable to higher sales of citrus and textile. As a consequence foreign trade balance has narrowed by 6,4 million USD over the same period in Share of Turkey in total imports has increased 5 points to 71,4 % during the quarter under reviewed. At the same time share of Turkey in total exports has also grown from 40,2 % to 49,6 %. Quarterly Bulletin 2007/Q1 9

11 7. Tourists arriving to the country has risen. When compared to the first three months of 2006 the number of arrivals has increased from 146,142 to 164,783, reflecting a 12,75 percentage change, attributable both Turkey as core market and other countries. Most considerable change took place in February. With regard to the occupancy rate, an increase from 17,5 % to 23,8 % has been reported during the Q1 of The size of the balance sheet of the central bank of the TRNC has expanded due to increase in deposits and required reserve balances. Share of liquid assets in total assets has risen 5 points and reached to 85,74 %. Notification issued on liquidity ratio that is in effect since 01 March 2007 is the main reason for the enlargement in the balance sheet size. Credit volume has been unchanged, but stemming from the increase in the size of the balance sheet, share of credits in total assets has been diminished from 6,15 % to 5,71 %. On the other hand the share of the deposits and required reserves in total liabilities has been risen by 1,4 point percentage. 9. Liquidity ratio notification had a notable influence on the asset structure of the banking sector. Share of claims on central bank balances in total assets has increased 2,09 points in Q1, whereas the share of claims on banks has decreased 5,82 points from 32,49 % to 26,67%. Mainly the structural change had largely affected foreign bank branches. The share of gross credits to total assets has risen by half of a point. When analyzed by groups share of loans provided by public banks and foreign bank branches has increased, but the share of private banks has decreased. The share of TRY credits in total credits has risen slightly from 58,52 % to 58,93 %. 10. The share of deposits in total resources has increased both in share and volume. As examined by groups TRY deposits of all types of banks has risen. On the other hand Fx deposits of public and private banks has declined. However Fx deposits of foreign bank branches has expanded. The share of sight deposits to total deposits has fallen by a point. 11. The share of capital and reserves in total resources has widened. The reason for this increase is mainly attributable to increase in general reserves. In last quarter of 2006 the share of capital and reserves was 6,08 % and is 6,78 % as at the end of quarter under review. Ahmet TUGAY Governor Quarterly Bulletin 2007/Q1 10

12 II. LEGAL ARRANGEMENTS Quarterly Bulletin 2007/Q1 11

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14 The CENTRAL BANK of the TURKISH REPUBLIC of NORTHERN CYPRUS COMMUNIQUES, CIRCULARS and the DECISIONS of the BOARD of DIRECTORS ISSUED On the OFFICIAL GAZETTE TOPIC COMMUNIQUES, CIRCULARS and the DECISIONS of the BOARD of DIRECTORS ISSUED on the OFFICIAL GAZETTE OFFICIAL GAZETTE DATE NUMBER DATE NUMBER The decision taken about the Liquidity Ratio in accordance with the article 23 (1) of The Law on the Central Bank of the TRNC (Law No. 41/2001). 26/01/ /02/ Source: Central Bank of the TRNC Quarterly Bulletin 2007/Q1 13

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16 III. ECONOMIC DEVELOPMENTS Quarterly Bulletin 2007/Q1 15

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18 SECTORAL ADDED VALUES and GNP TARGETS (With 2006 Prices, TRY) Amount (Target) Shares %) Amount Shares (%) Real Growth (%) 1. Agriculture ,9 6, ,2 6,5 6, Crop Production ,0 3, ,2 3,4 7, Livestock Production ,6 2, ,6 2,6 5, Forestry ,2 0, ,2 0,0 7, Fishery ,1 0, ,2 0,5 7,1 2. Industry ,9 9, ,9 9,8 8, Quarrying ,8 0, ,7 0,6 6, Manufacturing ,5 4, ,6 4,7 8, Electricity - Water ,6 4, ,6 4,5 8,7 3. Construction ,3 7, ,7 7,3 7,0 4. Trade - Tourism ,2 15, ,4 15,9 9, Wholesale and Retail Trade ,9 11, ,1 11,3 7, Hotels and Restaurants ,3 4, ,3 4,6 14,3 5. Transport - Communication ,7 10, ,2 11,0 8,9 6. Financial Institutions ,4 6, ,3 6,4 6,8 7. Ownership of Dwellings ,7 2, ,2 2,6 7,2 8. Business and Personal Services ,0 10, ,6 10,5 8,6 9. Public Services ,5 20, ,7 20,3 4,4 Import Duties ,0 10, ,8 9,8 4,5 GDP (Market Prices) ,6 100, ,0 100,0 7,0 Net Factor Income From Abroad , ,0 5,1 GNP (Market Prices) , ,0 7,0 Indirect Taxes , ,1 6,3 GNP (Factor Prices) ,9 7,1 1 Provisional Figures Source: State Planning Organization Quarterly Bulletin 2007/Q1 17

19 GENERAL BALANCE OF THE ECONOMY (With 2006 Prices, TRY) Amount (Target) Share in GNP % Amount Share in GNP % Growth % 1. Total Resources ,6 110, ,0 110,1 6, GNP ,6 100, ,0 100,0 7, Current Account Deficit ,0 10, ,0 10,1 0,2 2. Total Investments ,5 23, ,5 23,5 6, Fixed Capital ,5 22, ,3 22,1 6, Public ,4 6, ,6 6,6 8, Private ,1 15, ,7 15,5 4, Changes in Stocks ,0 1, ,2 1,3 5, Public ,0 0, ,0 0,1 6, Private ,0 1, ,2 1,2 5,5 3. Total Consumption ,1 87, ,5 86,6 6,4 4. Public Disposable Income ,4 20, ,1 21,0 12, Public Consumption ,9 24, ,3 24,3 6, Public Savings ,5-4, ,2-3,2-19, Public Investments ,4 6, ,6 6,8 8, Difference in Public Savings - Investments ,9-10, ,8-10,0-2,3 5. Private Disposable Income ,2 80, ,9 79,0 5, Private Consumption ,2 62, ,2 62,4 6, Private Savings ,0 17, ,7 16,6 3, Private Investments ,1 17, ,9 16,7 4, Difference in Public Savings - Investments ,9 0, ,2-0,1 -- Private Savings Rate (%) 21,5 21,0 Marginal Private Savings Tendency (%) 34,0 12,5 6. Total Domestic Savings ,5 12, ,5 13,4 10,9 Total Marginal Savings Tendency (%) 27,0 20,2 Investments/GNP (%) 23,7 23,5 Savings/GNP (%) 12,9 13,4 1 Provisional Figures Source: State Planning Organization Quarterly Bulletin 2007/Q1 18

20 BALANCE of STATE REVENUES and EXPENDITURES (TRY) At Current Prices (Target) Change Share in GNP (%) At 2006 Prices Share in GNP (%) At Current Prices Real (%) Current (%) I. BUDGET REVENUES ,0 44, ,2 46, ,0 11,6 17,1 1. Local Revenues ,4 30, ,9 33, ,0 17,9 23, Tax Revenues ,5 20, ,9 22, ,0 20,9 26, Direct Taxes ,0 7, ,1 9, ,0 34,6 41, Indirect Taxes ,5 12, ,8 13, ,0 12,5 18, Other Income ,0 4, ,5 4, ,0 10,7 16, Fund Revenues ,9 6, ,5 6, ,0 13,6 19,2 2. Foreign Aid and Credits ,6 14, ,3 13, ,0-2,0 2,9 2.1.Foreign Aid ,6 7, ,0 7, ,0 12,6 18, Republic of Turkey ,7 7, ,0 7, ,0 12,6 18, Other , Credits ,0 6, ,3 5, ,0-17,9-13, Republic of Turkey ,0 6, ,3 5, ,0-17,9-13,8 II. EXPENDITURES ,5 45, ,2 46, ,0 9,4 14,8 1. Current Expenditures ,3 18, ,2 18, ,0 9,1 14, Personnel Expenditures ,8 16, ,8 16, ,0 9,7 15, Other Current Expenditures ,5 2, ,4 2, ,0 4,8 10,0 2. Transfers ,1 19, ,0 19, ,1 7,2 12,6 3. Defence ,0 2, ,0 2, ,0 19,0 25,0 4. Investments ,1 5, ,0 6, ,0 13,1 18,7 III. BALANCE OF BUDGET ,5 1 Provisional Figures Source: State Planning Organization Quarterly Bulletin 2007/Q1 19

21 BALANCE OF PAYMENTS (Millions US $) (Target) Change (%) 1. Current Account 1.1. Foreign Trade Exports 65,1 68,9 5, Imports 1.291, ,4 3,3 Foreign Trade Balance , ,5 3, Invisible Accounts Tourism (Net) 258,3 274,5 6, Other Invisibles (Net) 685,6 710,6 3,6 Invisible Accounts Balance 943,9 985,1 4,4 Current Account Balance -282,0-279,4-0,9 2. Capital Movements 2.1. Foreign Aid and Loans by Turkey 180,0 146,1-18, Other Capital Movements (Net) 70,7 75,6 6,9 Capital Movements Balance 250,7 221,7-11,6 General Balance -31,3-57,7 84,3 3. Change In Reserves (-Increase,+ Decrease) 42,6 57,7 35,4 4. Net Errors and Omissions -11,3 Average US$ Exchange Rate 1,45 1,54 6,2 1 Provisional Figures Source: State Planning Organization Quarterly Bulletin 2007/Q1 20

22 MAIN GROUPS CONSUMER PRICE INDEX ( =100 BASIC YEAR) INDEX VALUES MARCH DECEMBER FEBRUARY MARCH RATE OF CHANGE OVER PREVIOUS MONTH % RATE OF CHANGE OVER Q % 1. Food and Nonalcoholic Beverages 603,0 691,2 707,7 724,4 2,3 4,8 20,1 2. Alcoholic Beverages and Tobocco 1.158, , 0 RATE OF CHANGE OVER Q % Total 760,5 883,8 901,5 914,5 1,4 3,5 20,2 Source: State Planning Organization 1.361, , 3 0,4 6,7 17,9 3. Clothing and Footwear 772,9 849,8 748,8 784,3 4,7-7,7 1,50 4. Housing, Water, Electricity, Gas and Other Fuels 982, , , , 1 0,1 2,3 26,5 5. Furnitures, Household Appliances and Services 693,6 770,7 784,0 800,3 2,1 3,8 15,4 6. Health 794,9 890,5 960,2 960,1 0 7,8 20,8 7. Transportation 921, , , , 9 0,1 0,5 22,3 8. Communication 593,2 608,2 603,4 600,9-0,4-1,2 1,30 9. Entertainment and Culture 556,0 660,6 649,0 664,6 2,4 0,6 19,5 10. Education 1.085, , , , 8 0,3-0,5 33,7 11. Restaurants and Hotels 786,8 873,8 894,4 928,1 3,8 6,2 18,0 12. Other Goods and Services 837,4 928, , , 4 0,2 24,3 37,7 Quarterly Bulletin 2007/Q1 21

23 CONSUMER PRICE INDEX ( =100 BASIC YEAR) EFFECTS on RATE of CHANGE Over Previous Month Jan. Feb. March MAIN GROUPS Total 1. Food and Nonalcoholic Beverages 1,1-0,3 0,7 1,5 2. Alcoholic Beverages and Tobocco 0,1 0,1 0,0 0,2 3. Clothing and Footwear -0,4-0,7 0,4-0,7 4. Housing, Water, Electricity, Gas and Other Fuels 0,1 0,0 0,0 0,1 5. Furnitures, Household Appliances and Services 0,0 0,2 0,2 0,4 6. Health 0,3 0,0 0,0 0,3 7. Transportation 0,1 0,0 0,0 0,1 8. Communication 0,0 0,0 0,0 0,0 9. Entertainment and Culture -0,1 0,0 0,0-0,1 10. Education 0,0 0,0 0,0 0,0 11. Restaurants and Hotels 0,0 0,1 0,1 0,2 12. Other Goods and Services 0,1 1,3 0,0 1,4 Total 1,3 0,7 1,4 3,4 Note: Figures may differ due to roundings Source: State Planning Organisation Quarterly Bulletin 2007/Q1 22

24 BUDGET FOR THE FISCAL YEAR 2007 Revenues and Expenditures in General Forecast Revised Q Actual Total Revenues , , ,5 Total Expenditures , , ,2 Difference / Surplus ,2 BUDGET REVENUES FOR THE FISCAL YEAR 2007 Q Forecast Revenue Balance Accrual % Tax , , ,9 19,6 Nontax , , ,5 24,3 Capital , , ,5 83,6 Grants, Aid and Loans , , ,7 20,6 Collection of revenues ,0 Reimbursements , , ,1 19,1 Total , , ,6 21,1 Source: Office of Treasury and Accounting Quarterly Bulletin 2007/Q1 23

25 Source: Office of Treasury and Accounting BUDGET EXPENDITURES FOR THE FISCAL YEAR 2007 Functional Classification Beginning Allowances Q1 Revised Allowances Buıdget Expenditures Balance General Public , , , ,5 Defence Services , , , ,0 Public Order and Security , , , ,3 Economical , , , ,9 Environmental Protection , , , ,4 Housing and Social Welfare , , , ,0 Health , , , ,7 Recreation, Culture and Religious , , , ,8 Educational , , , ,4 Social Security and Welfare , , , ,5 Total , , , ,6 BUDGET EXPENDITURES FOR THE FISCAL YEAR 2007 Financial Classification Q1 Beginning Allowances Revised Allowances Buıdget Expenditures Balance Local Resources , , , ,8 Funds , , , ,7 Grants , , , ,8 Loans , , , ,4 Rotating Capital , , , ,0 Special Allowances , ,7 External Project Loans and Aid , ,5 141,2 Total , , , ,6 BUDGET EXPENDITURES FOR THE FISCAL YEAR 2007 Economic Classification Q1 Beginning Allowances Revised Allowances Budget Expenditures Balance Personnel , , , ,2 Social Sec.Gov. t Premium , , , ,0 Purchases of Goods&Services , , , ,6 Current , , , ,3 Capital , , , ,1 Transfers(Capital) , , , ,2 Lending , , , ,6 Reserve Allowances , , ,6 Total , , , , 6 Quarterly Bulletin 2007/Q1 24

26 FOREIGN TRADE IMPORTS YEARLY Year TRY USD March Jan. - March March Jan. - March TURKEY AND OTHER COUNTRIES TRY USD Year March Jan. - March March Jan. - March SHARE OF TURKEY AND OTHER COUNTRIES IN TOTAL IMPORTS (%) Year Turkey 3.rd World Countries March Jan. - March March Jan. - March ,8 66,3 30,2 33, ,8 71,4 27,2 28,6 Source: Office of Commerce Quarterly Bulletin 2007/Q1 25

27 FOREIGN TRADE EXPORTS YEARLY Year TRY USD March Jan. - March March Jan. - March TURKEY AND OTHER COUNTRIES Year TRY USD March Jan. - March March Jan. - March SHARE OF TURKEY AND OTHER COUNTRIES IN TOTAL EXPORTS (%) Year Turkey 3.rd World Countries March Jan. - March March Jan. - March ,6 40,2 65,4 59, ,8 49,6 54,2 50,4 Source: Office of Commerce Quarterly Bulletin 2007/Q1 26

28 IMPORTS BY COUNTRIES (USD) (Q1) TURKEY EU OTHER EU FAR EAST MIDDLE EAST OTHER TOTAL EXPORTS BY COUNTRIES (USD) (Q1) TURKEY EU OTHER EU FAR EAST 0 0 MIDDLE EAST OTHER TOTAL Source: Office of Commerce Quarterly Bulletin 2007/Q1 27

29 TOURISM Bed Capacity by Months Jan. Feb. March Source: Tourism Planning Office Bed Capacity by Regions Girne Mağusa İskele Lefkoşa Güzelyurt Bed Capacity Source: Tourism Planning Office Quarterly Bulletin 2007/Q1 28

30 Number of Arrivals (Monthly) Jan. Feb. March Source: Tourism Planning Office Number of Arrivals by Port of Entry (%) 100% Total Mağusa 3% Girne 13% Ercan 84% Ercan Girne Mağusa Total % 84% 13% 3% 100% Arrivals Source: Tourism Planning Office Quarterly Bulletin 2007/Q1 29

31 Number of Arrivals from South Cyprus (excluding TRNC Citizens) by Months Jan. Feb. March Arrivals Source: Tourism Planning Office Occupancy Rate of Tourists in Tourist Accomodation Establishment (Monthly) 25,00 20,00 15,00 10,00 5,00 0,00 Jan. Feb March ,10 15,90 23, ,50 17,40 23,80 Source: Tourism Planning Office Quarterly Bulletin 2007/Q1 30

32 Occupancy Rate by Regions 60,00 50,00 40,00 30,00 20,00 10,00 0,00 Girne Güzelyurt Lefkoşa Mağusa İskele Occupancy Rate 21,90 13,20 50,50 38,30 5,80 Source: Tourism Planning Office Quarterly Bulletin 2007/Q1 31

33 IV. MONEY AND BANKING STATISTICS Quarterly Bulletin 2007/Q1 32

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35 BALANCE SHEET ITEMS of the CENTRAL BANK of the TRNC 31 December 06 % 31 March 07 % TRY PORTION TRY PORTION Liquid Assets , ,74 Credits , ,71 Other Assets , ,55 Total Assets , ,00 Capital & Reserves , ,18 Deposits , ,62 Required Reserves , ,19 Other Liabilities , ,01 Total Liabilities , ,00 LIQUID ASSETS of the CENTRAL BANK OF THE TRNC 31 December 06 % 31 March 07 % TRY PORTION TRY PORTION LIQUID ASSETS , ,00 Cash Assets , ,89 Gold , ,07 TRL/TRY Deposits with the Banks , ,27 FX Deposits with the Banks , ,70 Abroad Banks , ,60 Securities Portfolio , ,47 CREDITS TO BANKING SECTOR by the CENTRAL BANK OF THE TRNC 31 December 06 % 31 March 07 % TRY PORTION TRY PORTION Credits to Banking Sector , ,00 Agriculture 0,00 0,00 Trade 0,00 0,00 Manufacturing , ,17 Export 0,00 0,00 Small Business 0,00 0,00 Tourism 0,00 0,00 Education , ,83 Eximbank Export 0,00 0,00 Note: Compound interest incomes are included in the amounts. Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 34

36 DEPOSİTS with the CENTRAL BANK of the TRNC 31.March June September December March.07 TRY % TRY % TRY % TRY % TRY % TOTAL , , , , ,00 I. PUBLIC DEPOSIT , , , , ,06 TRL/TRY , , , , ,20 FX , , , , ,80 II. BANKS , , , , ,86 A- AT CALL , , , , ,18 TRL/TRY , , , , ,20 FX , , ,95 B- REQUIRED RESERVES , , , , , , ,82 TRL/TRY , , , , ,73 FX , , , , ,27 III. OTHER , , , , ,08 TRL/TRY , , , , ,03 FX , , , , ,97 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 35

37 YEAR MONTH The CENTRAL BANK of the TRNC EXCHANGE RATES TRL - TRY/ FOREİGN EXCHANGE USD GBP EURO CYP Buying Selling Buying Selling Buying Selling Buying Selling ,3418 1,3483 2,3121 2,3242 1,5875 1,5952 2,6934 2, ,4056 1,4124 2,7569 2,7713 1,8515 1,8604 3,1067 3, ,4221 1,4290 2,7941 2,8087 1,8432 1,8521 3,0763 3,2301 Note: TRY as from ,3922 1,3989 2,7338 2,7481 1,8397 1,8486 3,0681 3, ,3801 1,3868 2,7017 2,7158 1,8383 1,8472 3,0586 3,2116 CROSS RATES YEAR MONTH GBP EURO CYP ,6724 1,1753 1, ,6161 1,0037 1, ,4801 0,9208 1, ,4465 0,8809 1, ,6029 1,0422 1, ,7750 1,2502 2, ,9205 1,3611 2, ,7238 1,1831 2, ,9621 1,3172 2, ,9655 1,2961 2, ,9645 1,3215 2, ,9583 1,3320 2,3159 Source: Central Bank of TRNC Foreign Exchange/USD Quarterly Bulletin 2007/Q1 36

38 Effective Dates IMP.- TRADE RATIO ON BILLS REDISCOUNTED of the CENTRAL BANK of the TRNC TYPE OF CURRENCIES TRL / TRY USD EURO GBP MAN.- TOUR.- AGR.-EDU. EXPORT S.BUSINESS IMP.- TRADE MAN.- TOUR.- AGR.-EDU. IMP.- TRADE MAN.- TOUR.- AGR.-EDU. IMP.- TRADE MAN.- TOUR.- AGR.-EDU. DATE of the DECISION of the BOARD of DIRECTORS No DATE Of The OFFICIAL GAZETTE No Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 37

39 REQUIRED RESERVE RATIOS EFFECTIVE FROM TRL/TRY FX Source: Central Bank of TRNC LIQUIDITY RATIOS General as from as from Special(*) as from as from Not: (*) Applies if capital and reserves times five exceeds deposits with banks abroad. Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 38

40 Official Gazette Date / Number OVER DRAWN CHEQUES Those Prohibited From Using Cheques (Number of Persons) / / / / / / / / / / / TOTAL 159 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 39

41 INTEREST RATES on TRL/TRY and FX RESERVE REQUIREMENTS APPLIED by the CENTRAL BANK of the TRNC EFFECTIVE DATES TRL/ TRY Source: Central Bank of TRNC TYPE OF CURRENCIES USD EURO GBP CYP Date of the Decision of the BOARD of the DIRECTORS No Date of the OFFICIAL GAZETTE , , ,00 3,00 7, , , ,00 6,00 9,00 5, ,00 6,00 8,00 4, ,00 5,00 5,00 1, ,00 3,00 5,00 0, , ,00 3,00 5, ,00 1,00 2, ,50 0,50 1, ,00 0,35 0,50 1, , ,50 1, ,00 0,75 0,50 1, ,00 1,25 0,75 2, ,00 1,00 2, ,00 2,00 1,00 2, No Quarterly Bulletin 2007/Q1 40

42 EFFECTIVE RATES INTEREST RATES on BANK DEPOSITS APPLIED by the CENTRAL BANK of the TRNC TYPE OF CURRENCIES TRL / TRY USD EURO GBP CYP Not : tarihinden tarihine kadar miktarlara göre değişken faiz oranları kullanılmıştır. Source: Central Bank of TRNC Decision of the BOARD of DIRECTORS OFFICIAL GAZETTE Sight Month Month Year Sight Month Month Year Sight Month Month Year Sight Month Month Year Sight Month Month Year Date No Date No ,00 6,00 8,00 2,00 3,00 4,00 6,00 7,00 8,50 5,00 6,00 7, ,00 5,00 7,00 5,00 6,00 8,00 6,00 8,00 10,00 3,00 4,00 5, ,00 3,00 5,00 4,00 5,00 7,00 4,00 6,00 8,00 1,00 2,00 3, ,00 4,00 5,00 2,00 3,00 4,00 4,00 5,00 6,00 0,00 0,00 0,00 0, ,00 4,00 5,00 6,00 2,00 3,00 4,00 5,00 4,00 5,00 6,00 8, ,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 4,00 4,00 4,00 4, ,00 38,00 38,00 38,00 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 3,25 3,25 3,25 3, ,75 0,75 0,75 0,75 1,25 1,25 1,25 1,25 2,85 2,85 2,85 2, ,00 37,00 37,00 37, ,00 35,00 35,00 35, ,50 0,50 0,50 0, ,00 33,00 33,00 33, ,00 30,00 30,00 30, ,00 28,00 28,00 28, ,00 25,00 25,00 25, ,00 23,00 23,00 23, ,00 21,00 21,00 21, ,00 1,00 1,00 1,00 1,25 1,25 1,25 1,25 3,25 3,25 3,25 3, ,00 19,00 19,00 19, ,00 17,00 17,00 17, ,00 16,00 16,00 16, ,50 14,50 14,50 14, ,50 1,50 1,50 1,50 1,25 1,25 1,25 1,25 3,25 3,25 3,25 3, ,00 14,00 14,00 14,00 1,75 1,75 1,75 1, ,50 13,50 13,50 13, ,25 2,25 2,25 2, ,25 13,25 13,25 13, ,25 2,25 2,25 2,25 1,50 1,50 1,50 1,50 2,25 2,25 2,25 2, ,00 13,00 13,00 13,00 3,75 3,75 3,75 3,75 1,75 1,75, 1,75 1,75 3,25 3,25 3,25 3, ,50 14,50 14,50 14, ,75 16,75 16,75 16, ,00 17,00 17,00 17, Quarterly Bulletin 2007/Q1 41

43 CONSOLIDATED BALANCE SHEET of the BANKING SECTOR ASSET Public Banks % Portion Private Banks 31 December March 2007 TRY TRY % Portion Foreign Banks Branches % Portion TOTAL % Portion Public Banks % Portion Private Banks % Portion Foreign Banks Branches % Portion TOTAL % Portion Cash Assets , , , , , , , ,75 CB-TRNC , , , , , , , ,05 Claims on Banks Securities Portfolio Required Reserves , , , , , , , , , , , , , , , , , , , , , , , ,66 Credits , , , , , , , ,37 Past-Due Loans , , , , , , , ,71 Provisions for Past-Due Loans , , , , , , , ,98 Other Assets , , , , , , , ,99 Total: , , , , , , , ,00 LIABILITY Deposits TRL , , , , , , , ,99 Deposits FX , , , , , , , ,82 Interbank TRL , , , , , , , ,20 Interbank FX , , , , , , , ,55 Other Liabilities , , , , , , , ,66 Deposits TRL , , , , , , , ,78 Deposits FX , , , , , , , ,00 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 42

44 SECTORAL DISTRIBUTION of the CREDITS and the MATURITY DISTRIBUTION of the DEPOSITS in BANKING SECTOR ın Brief TRL/TRY % PORTION FX % PORTION TOTAL % PORTION 2006 / I (TRY) , , ,00 Public , , ,72 Trade , , ,05 Consumer , , ,87 Others , , , /I I (TRY) , , ,00 Public , , ,39 Trade , , ,73 Consumer , , ,94 Others , , , /III (TRY) , , ,00 Public , , ,22 Trade , , ,56 Consumer , , ,22 Others , , , /IV (TRY) , , ,00 Public , , ,37 Trade , , ,67 Consumer , , ,33 Others , , , / I (TRY) , , ,00 Public , , ,76 Trade , , ,63 Consumer , , ,54 Others , , ,07 Note: In the above table, the manufacturing sector is involved in the trade sector; while the others refers to the sum of all the other remaining sectors. The expression Consumer is used instead of Personal and Professional Credits and Others. DISTRIBUTION of the DEPOSITS in BANKING SECTOR by MATURITY BREAKDOWN - (in Brief) TP % PAY YP % PAY TOPLAM 2006 / I (TRY) , , ,00 Sight , , ,08 Fixed Term , , , /II (TRY) , , ,00 Sight , , ,91 Fixed Term , , , / III (TRY) , , ,00 Sight , , ,71 Fixed Term , , , / IV (TRY) , ,00 Sight , , ,26 Fixed Term , , , / I (TRY) , , ,00 Sight , , ,52 Fixed Term , , ,48 Source: Central Bank of TRNC % PAY Quarterly Bulletin 2007/Q1 43

45 CREDITS in BANKING SECTOR 31 December 06 % 31 March 07 % TRY Portion TRY Portion Volume of Credits in Banking Sector , ,00 Credits (TRY) , ,93 -Public Banks , ,09 -Private Banks , ,06 -Foreign Banks Branches , ,85 Credits (FX) , ,07 -Public Banks , ,89 -Private Banks , ,59 -Foreign Banks Branches , ,52 Claims Under Legal Proceedings (Gross) (TRY+FX) , ,82 -Public Banks , ,33 -Private Banks , ,91 -Foreign Banks Branches , ,76 Provisions for Claims Under Legal Proceedings (TRY+FX) Public Banks , ,31 -Private Banks , ,67 -Foreign Banks Branches , ,02 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 44

46 SECTORAL DISTRIBUTION of the CREDİTS in BANKING SECTOR (TRL/TRY) Credits 31 December 06 % 31 March 07 TRY Portion TRY % Portion Total Credits , ,00 TRY Credits , ,93 Public Banks , ,89 Public Enterprises & Institutions , ,35 Agriculture , ,06 Mining & Quarrying Manufacturing Transport & Communication Trade , ,45 Export , ,01 Tourism , ,86 Building & Construction , ,13 Personal and Professional Credits , ,00 Small Business , ,14 Private Banks , ,82 Public Enterprises & Institutions , ,03 Agriculture , ,19 Mining & Quarrying Manufacturing , ,21 Transport & Communication , ,14 Trade , ,03 Export , ,01 Tourism , ,05 Building & Construction , ,75 Personal and Professional Credits , ,54 Small Business , ,05 Foreign Branch Banks , ,22 Public Enterprises & Institutions ,14 Agriculture , ,38 Mining & Quarrying Manufacturing , ,02 Transport & Communication Trade , ,95 Export ,04 Tourism Building & Construction ,14 Personal and Professional Credits , ,37 Small Business Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 45

47 SECTORAL DISTRIBUTION of the CREDİTS in BANKING SECTOR (FX) Credits Source: Central Bank of TRNC 31 December 06 % 31 March 07 TRY Portion TRY % Portion Total Credits , ,00 FX Credits , ,07 Public Banks , ,76 Public Enterprises & Institutions , ,79 Agriculture , ,91 Mining & Quarrying Manufacturing , ,27 Transport & Communication Trade , ,50 Export , ,70 Tourism , ,67 Building & Construction Personal and Professional Credits , ,10 Small Business , ,06 Private Banks , ,81 Public Enterprises & Institutions , ,10 Agriculture , ,25 Mining & Quarrying , ,02 Manufacturing , ,26 Transport & Communication , ,92 Trade , ,56 Export , ,02 Tourism , ,60 Building & Construction , ,61 Personal and Professional Credits , ,00 Small Business , ,66 Foreign Branch Banks , ,50 Public Enterprises & Institutions Agriculture Mining & Quarrying Manufacturing Transport & Communication , ,51 Trade Export Tourism Building & Construction , ,49 Personal and Professional Credits Small Business Quarterly Bulletin 2007/Q1 46

48 DISTRUBUTION of the CREDİTS in BANKING SECTOR by CURRENCIES YEAR PERİOD TRY USD GBP EURO CYP OTHER , , , , , , , , , , , , I , , ,00 II , , ,00 III , , ,00 IV , , , I , , ,00 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 47

49 DEPOSITS in BANKING SECTOR 31 December 06 % 31 March 07 TRY Portion TRY % Portion Total Deposits (Interbank ıncluded) , ,00 Total Deposits (Interbank Excluded) , ,13 TRY Deposıts (Interbank Excluded) , ,66 Public Banks , ,36 Sight Official , ,16 Savings , ,04 Commercial , ,72 Other , ,17 Fixed-Term Official , ,67 Savings , ,18 Commercial , ,74 Other , ,31 Private Banks , ,88 Sight Official , ,86 Savings , ,77 Commercial , ,55 Other , ,55 Fixed-Term Official , ,03 Savings , ,12 Commercial , ,80 Other , ,32 Branch Banks , ,43 Sight Official , ,49 Savings , ,92 Commercial , ,40 Other , ,81 Fixed-Term Official , ,04 Savings , ,10 Commercial , ,33 Other , ,92 FX Deposits (Interbank Excluded) , ,47 Public Banks , ,04 Sight Official , ,80 Savings , ,76 Commercial , ,17 Other , ,14 Fixed-Term Official , ,59 Savings , ,61 Commercial , ,80 Other , ,13 Private Banks , ,84 Sight Official , ,17 Savings , ,37 Commercial , ,64 Other , ,10 Fixed-Term Official , ,76 Savings , ,96 Commercial , ,72 Other , ,28 Branch Banks , ,59 Sight Official 0,00 0,00 Savings , ,44 Commercial , ,75 Other , ,59 Fixed-Term Official , ,00 Savings , ,01 Commercial , ,65 Other , ,56 Interbank Deposits , ,87 Interbank Deposits (TRL/TRY) , ,93 Sight , ,65 Fixed-Term , ,35 Interbank Deposits (FX) , ,07 Sight , ,74 Fixed-Term , ,26 Source: Central Bank of TRNC Quarterly Bulletin 2007/Q1 48