Turkey to attract huge investments with harmony in economy: Albayrak

Turkey to attract huge investments with harmony in economy: Albayrak

Cem Seymen - BUENOS AIRES

The new economy management of Turkey envisages harmony with the dynamics of the market, concurrent with the realities of financial environment, coordinated with the global financial system with strong diplomatic communication, and will walk more firmly, Treasury and Finance Minister Berat Albayrak has said.

Turkey will strongly continue its dialogue with international rating organizations, banks and investors,” the minister said July 22, speaking to journalists during his visit to Argentina for a G-20 meeting.

“Nobody is at the point of imposing ideas onto others. We will express our theses in the right way. For this term, the key and critical word of this communication will be harmony.”

Turkey’s current account deficit is partly related to the country, but partly related to perceptions too, he said, stressing that the country will be a more attractive place.

“This is very clear about this term. Turkey will never be so tempting. There will be no such opportunity in terms of costs and market value,” he said.

“The fluctuations for the past 1-1.5 years have temporarily affected the inflation rates. But it’s not permanent,” he said.

The government will “ensure recovery in inflation by taking strong steps,” he said, adding: “Within the scope of monetary policies, fiscal policies, expenditures and liquidity policies, the fight against inflation will be more coordinated. In the coming short and medium term, we will construct the infrastructure of this struggle in a powerful way so that Turkey will not experience these fluctuations and shocks.”

Albayrak said he will not compromise budgetary discipline this period.

The Central Bank of Turkey will be more efficient than ever, he stressed.

They will gradually take concrete steps on finance institutions, including the Banking Regulation and Supervision Agency (BDDK), Capital Markets Board (SPK) and the Treasury and Finance Ministry, he said.

“We will not fight,” but will conduct strong dialogue with the markets on a win-win principle, Albayrak said, noting that they will give ear to academics, economy commentators and figures from the media. 

Albayrak added that his ministry will work on a communication plan as part of general strategies.

They will hold meetings of a financial stability committee weekly, headed by the minister, and will enable the coordination of all stakeholders, according to Albayrak.

“We are not discovering a new star in the sky. We have to put forward the correct things applied in the economic and financial system in the world. Now with the new code of this century, with strategic steps, we need to adapt Turkey’s infrastructure into the world system.”

His ministry will launch a multidimensional economic diplomacy after laying the foundation for the new term’s infrastructure, Albayrak stated.

New program by September 

The minister announced that they will launch a new program by September which will include not only the Development Ministry, the Treasury or the Central Bank, but also all banks, real sector, finance circles and academia.

“What we really mean here by saying ‘realistic’ is a program that approaches the changes and challenges in global dynamics,” he said.

“The economy should not run over daily reflexes; it should be realistic,” Albayrak stated.

On the mid-term program, the minister said the government will launch a process to curb investment-based expenditures along with the current expenditure. “There is an agreement to reduce spending in a disciplined way,” Albayrak said.