The textile branch of Turkey's Confederation of Revolutionary Workers’ Union, or DISK, said the sector is facing a catastrophic situation and urged the government to implement immediate incentives to revitalize the textile industry.  The incentives should include the one-year suspension of the collection of social security premiums for workers, reduce energy prices by 50% and decrease the tax rates on wages. The Turkish economy, in particular the textile sector, one of the country’s leading industries, is facing a major contraction stemming mainly from a decline in both domestic and foreign demand as the ongoing global financial crisis continues.

The government recently revised its 2009 growth target to 3.6% contraction from its previous 4% growth forecast, and has been harshly criticized for delaying taking the necessary measures to curb the affects the mounting global economic crisis. The announcement also urged the government to resolve the difficulties textile companies encounter when securing credit from the Turkish banking sector, adding that interest rates asked for trade loans were the highest in the world.