Total fund transfers abroad by foreign investors who made profits from direct and portfolio investments in Turkey increased by 8.5 percent to $4.99 billion in the first half of the year compared to the same period of the previous year.
Total fund transfers reached $65.7 billion between 2005 and June 2015, according to the information compiled from Turkish Central Bank data by Dünya News Agency. While the uncertainty about when the U.S. Federal Reserve will hike rates continues, the amount of funds which are gained from direct and portfolio investments by foreign capitalized companies in Turkey and transferred to their home countries is continuing to increase. According to Dünya, while the transfer of profits gained from direct investments was $2.61 billion, the transfer of profits gained from portfolio investments was realized at $2.31 billion in the period of January-June. Thus, total profit transfers rose by 7.5 percent from $4.59 billion to $4.99 billion.
The amount of profits that were earned from portfolio investments such as foreign stocks and government debt securities and transferred abroad has reached $37.37 billion since 2005. In the same period, the amount of profits that were gained from direct investments and transferred abroad was realized at $27.69 billion. Thus, the total amount of profits that were gained from direct and portfolio investments and transferred abroad has reached $65.70 billion since 2005.
In the first half of 2015, hot money-based profit transfers were below the transfer of profits gained from direct investments. In the first half of the year, while the amount of profit transfer gained from portfolio investment was realized at $2.37 billion, the amount of direct-investment based profit transfer was at $2.61 billion. In 2004 and 2005, profits gained from portfolio investments were three times higher than the profits earned from direct investments. Direct investment entry to Turkey fell by 15 percent to $1.86 billion in the period from January-June, compared to the same period of the previous year. The highest direct investment entry to the country was observed in 2007 with $19.13 billion, according to Central Bank data. Direct investment entry was realized at $16.13 billion in 2011, $10.75 billion in 2012, $9.86 billion in 2013 and $8.70 billion in 2014.