Minister unveils plan to turn Istanbul into global finance center
Posted by meb at October 5th, 2009
Discussed for months but never detailed, key points of a government plan to turn Istanbul into a global financial center were finally revealed by a top minister on Friday.
Speaking at a press conference organized as part of the International Monetary Fund-World Bank annual meetings, Deputy Prime Minister Ali Babacan said Istanbul would soon become “a significant and prominent financial center.” Babacan tied the effort to the “void” created by the global financial crisis.
“Istanbul is the natural finance center of Turkey,” he told journalists. “We need to increase its competitive power regionally and globally. The competitive strength of our economy is very important.”
The project “Istanbul International Financial Center,” or IFC Istanbul, is included in the ninth development plan covering 2007-2013.
“In this action plan, in order to have Istanbul as a global finance center, priorities have been determined to build a legal infrastructure that operates on international standards, to increase diversity of financial products and services and to develop a simple and effective system,” said Babacan. “We need to enhance our legal infrastructure.”
“In the effort to turn Istanbul into such a center, it is necessary to improve the legal aspect, which would bring expeditious and effective resolutions of disputes in the area of finance, to establish an institutional arbitration center and to accelerate legislation of laws that would contribute to the IFC-Istanbul Project,” the minister said.
One priority is to increase the diversity of financial products and services, according to Babacan. “A global finance center should have diversity in the products and services it offers and the conditions of such offers should be attractive,” he said.
Noting that building a simple and effective tax system is also a priority, Babacan said tax laws and related legislation will be made “simple, clear, predictable and sustainable.”
Reforming taxation would help the inflow of financial transactions into Istanbul and Turkey, the minister said. “We should also consider improving the regulatory and supervisory framework.”
“The current global crisis once more demonstrated the importance of coordination among regulatory authorities of countries,” Babacan said. “On the other hand, we can say that Turkey has proved itself with its strong financial and banking system. Turkey sets an example for other countries.”
Enhancing physical infrastructure is another priority for the IFC-Istanbul project. “We are targeting to develop every part of the city in terms of standards and technology,” said Babacan. “We are also working to create new software for markets and a technology platform to serve as a communication center.”
Babacan mentioned that the IFC is a long-term plan. “The IFC-Istanbul project will not only focus on a specific site. In fact, all operations across Istanbul to enhance residential areas, security and transportation, shall support the IFC,” he said. “We will focus on developing human resources and the image of Istanbul. As you all know, Turkey is very strong on human resources.”
The government has created nine working groups for the project, he said.
Responding to a question on the perceived “unease” of the government about the independence of the Central Bank, Babacan said the government was not questioning the status of the bank.
source: Hurriyet daily news
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