Babacan: Mid-term economic program may be adjusted if IMF deal reached
Posted by meb at September 24th, 2009
Economy Minister Ali Babacan said on Wednesday that talks between Turkey and the International Monetary Fund (IMF) over a stand-by agreement are still under way and that some adjustments can be made to a recently announced medium-term economic program if an agreement is reached with the IMF.
Delivering a speech at the International Economic Alliance’s Global Investment Symposium in New York on the sidelines of the United Nations General Assembly and a G-20 summit in Pittsburg scheduled for Sept. 24-25, Babacan briefed the participants about recent economic developments in Turkey.
Stressing that Turkey and the IMF are now more likely to sign a deal than they were three to four months ago, he noted that negotiations will continue on the basis of the government’s recently announced medium-term economic program, which focuses on putting budget balances back on track between 2010 and 2012. “If we reach an agreement over details, we can make adjustments to the program,” the minister said.
Babacan talked about the current situation of the Turkish economy, saying it has started to see signs of recovery from the global economic recession. Despite the positive effects of numerous infrastructural reforms implemented in the economy between 2002 and 2007, he said, economic growth slowed at the end of 2008 due to the global economic crisis. Noting that the recession also continued this year, Babacan added that positive growth is expected to take place again by the first quarter of 2010, according to the medium-term economic program. “We are expecting Turkey’s economy to contract 6 percent this year, but are estimating 3.5 percent growth for 2010,” Babacan said.
Recalling that Turkey is the only Organization for Economic Cooperation and Development (OECD) member that needed no intervention into its banking sector to overcome the effects of the global crisis, the minister noted that the banking system has remained powerful and resilient to the global shock thanks to a number of measures taken earlier.
Babacan also mentioned a government project to turn İstanbul into a regional financial center. In this regard, he noted the upcoming IMF and World Bank annual meetings, scheduled to take place in İstanbul on Oct. 6-7.
In reply to a question, Babacan cited the automotive, electronic, textile, machinery, home appliances, industry, construction, banking and insurance sectors as the most powerful in Turkey and as the ones that draw important foreign investment into the country. Responding to a question on a possible deal with the IMF, Babacan said: “It will not be the end of the world if we do not agree with the IMF. Turkey’s economy is powerful enough to tackle tough times.”
Asked about the impact of developments taking place in Middle Eastern countries on Turkey’s economic relations, the minister noted that Turkey has a large zone of influence in terms of economic activities. He explained that its trade with a number of Middle Eastern counties, including Iran, Iraq and Syria, along with Georgia, has increased despite the ongoing global economic crisis.
source: Today’s Zaman
Related posts: