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Finance Minister Mehmet Simsek has denied recurring speculation about his resignation, describing the rumors as unfounded and repetitive.
“I’m just laughing,” he said, in response to questions raised by ruling AK Party's lawmakers. “Since I took office, these same rumors keep coming up. There’s no such thing. I don’t even feel the need to answer this question anymore, but let me be clear: resignation is not on the table.”
Simsek was appointed as finance minister following the May 2023 elections in Türkiye and has remained in the position without interruption since then, overseeing the country’s return to orthodox economic policies in an effort to bring down soaring inflation.
His remarks came during a meeting with members of Parliament from Türkiye’s ruling party, where he addressed a wide range of economic concerns—from the impact of regional conflicts on energy markets to public criticism over credit costs and taxation.
According to the Türkiye daily, Simsek warned that growing tensions between Israel and Iran could lead to a possible closure of the Strait of Hormuz, a strategic waterway through which about 25% of global oil flows. He noted that any disruption could push oil prices higher, potentially hurting the Turkish economy along with others. However, he added that current global oil prices remain within tolerable limits for Türkiye, and reassured that the government would use “every available tool” to contain the economic fallout if necessary.
In response to criticism over high credit interest rates, Simsek emphasized that the government already subsidizes a large portion of loan costs for key sectors.
“We are covering 70% of interest rates for farmers and 50% for exporters,” he said, adding that the state also subsidizes natural gas used in residential housing. “The government is doing what’s necessary,” he added.
The Turkish central bank set the policy rate at 46%, alongside a 49% overnight lending rate at its April meeting, driving average commercial loan interest rates above 64.88% as of June 6, 2025—the highest level since June 2024.
He also pushed back against claims that wealthy individuals are not taxed fairly. “Quite the opposite,” he said. “Since we took office, we’ve increased taxes on the wealthy while reducing them for low-income groups to as low as 15%.”
Responding to opposition leader Ozgur Ozel’s criticism over a financial crimes report tied to the Istanbul Municipality probe, Simsek denied any involvement. Ozel had alleged that Simsek’s ministry manipulated financial crime data through the Financial Crimes Investigation Board (MASAK), a state body operating under the finance ministry, to politically target Istanbul Mayor Ekrem Imamoglu during a corruption investigation in March.
“I had no knowledge of the MASAK report,” Simsek stated. “MASAK is an independent institution. A report was requested, and they did their job. I wasn’t even consulted, nor was it necessary. But Mr. Ozel is harming the country by undermining the economy through baseless attacks on me.”
Simsek also commented on the latest survey released by Türkiye’s central bank, noting continued improvement in inflation expectations. According to the June Market Participants Survey, the 12-month forward inflation forecast has dropped to 24.6%, marking a 7.2-point decrease compared to the same month last year.
Turkish central bank will announce its next policy rate decision on Thursday at 2 p.m. local time (GMT+3).
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