Abstract
We are currently investigating an investment proposal concerning the chocolate confectionery sector, in Turkey. Specifically the analysis concerns the chocolate tablets production. Below follows an explanation of the elements of the investment decision, the general aspects of the Turkish economy and an analysis of the risks that the project could potentially face. For some decades Turkish economy was characterized by certain aspects, which worsened much more during the 90's. After the 2001 crisis, the Government outlined a new economic program to bring about a rapid turnaround in the economy. The new program goes much deeper than previous attempts in addressing the structural roots of the crisis – weak public finances and a fragile banking system – while strengthening social programs. The program also aims at bringing Turkey closer to its goal of EU accession. The establishment of the new macroeconomic settings was of key importance for improving confidence. While interest and exchange rates continue to be heavily influenced by fiscal policies due to the large public sector borrowing requirements, the Central Bank has been successful in building up credibility over time and is increasingly shaping inflation and interest rate expectations.
