Turkey's second top 500 industrial companies, which rank among the country's largest 501 to 1,000 firms, spent last year 51 percent of their total operating profit on financing costs, according to an Istanbul Chamber of Industry (ISO) report Monday.
"Fifty-one percent of the industrialists' hard-earned income was spent on financing costs, which grew 46.6 percent year-on-year. This amounts to 3.8 billion liras ($1.27 billion) out of 7.4 billion liras ($2.47 billion)," ISO President Erdal Bahçıvan said.
The net sales of the companies increased by 6.6 percent to 87.3 billion liras ($29.2 billion) in the same period, according to the report, while net earnings before interest, tax, depreciation and amortization (EBITDA) grew by 16.5 percent to reach 10.4 billion liras ($3.48 billion) from 8.9 billion liras ($2.98 billion) in 2014.
"The operating profit to net sales ratio hit 8.5 percent in 2015, the highest level in the recent years, as the operating profit rose 19.9 percent to 7.4 billion liras ($2.47 billion), compared to 6.2 billion liras ($2.07 billion) in 2014," Bahçıvan said.
According to the report, the total long-term debts of the second 500 companies went up 3.3 percent, while there was a 12.5 percent increase in short-term debts.
The number of companies that recorded profits went up to 483 in 2015 from 480 compared to the previous year, while loss-making firms went down to 17 from 20, the report said.
Turkey's top government officials including President Recep Tayyip Erdoğan have repeatedly called on the Central Bank to lower its key rates for over 2 years. They have urged the Central Bank to boost growth with lower borrowing costs.
Turkey's central bank cut a key interest rate for the fifth month in a row July 19 days after an attempted coup on July 15. The bank had reduced its overnight marginal funding rate by a quarter percentage point to 8.75 percent.
After many calls by Turkish officials, President of Banking Regulation and Supervision Agency (BDDK), Mehmet Ali Akben met with bank representatives last Friday to discuss lower rates. No announcements have been made yet.