The Economic Impact of Turkey's 'Terror-Free' Process: What the Markets Are Watching

Interior Minister Mustafa Çiftçi announced the new phase of Turkey's 'Terror-Free Turkey' process during a visit to Diyarbakır. Çiftçi highlighted that the law proposal was passed with record votes, summarizing the process as 'cleansing, verification, monitoring, and normalization.' The minister warned that monetary tightening measures would increase and commercial credit growth would slow down. He also revealed details about the Alihan Kuriş crime syndicate's operation in Germany: the syndicate's leadership was tracked using the Glooper app, and a 70 million euro headquarters was constructed. Youth and Sports Minister Osman Aşkın Bak announced sports investments in Diyarbakır, including a 3,500-person student dormitory and swimming pool projects.

Markets expect political stability to improve, but the slowdown in commercial credit growth could pressure the KOBİ sector. Banking sector will enter a cautious monitoring phase as monetary tightening measures ramp up.