Minister Şimşek, during his visit to the United States to attend the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, evaluated his contacts with the AA correspondent.
Şimşek expressed that the meetings were very productive, stating that they had the opportunity to meet with many international organizations such as the World Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, and European Investment Bank.
Pointing out that they also participated in IMF and World Bank meetings as well as G20 meetings, Şimşek explained that they held more than 20 investor meetings with large groups and met with hundreds of investors.
“We made comprehensive presentations to investors about the implementation of the Medium-Term Program (MTP), the achievements obtained, and the future direction,” said Şimşek, adding, “There is a great interest in Turkey. There were days when we attended meetings from 7 a.m. until 11-12 p.m. We held 18 programs in Washington on Friday. Therefore, there is very strong interest in Turkey. Because we are one of the rare country programs with a strong story and credibility. Turkey’s story is already strong, it’s a big, developing economy. We are strengthening the macroeconomic fundamentals with disinflation, structural reforms, and fiscal discipline, and this is very appealing. Therefore, investor interest was excellent, to put it simply.”
“Doubts about the program have been dispelled” Mehmet Şimşek recalled that there were doubts about the implementation of the program at an investor conference held in New York last year, stating that the doubts in this regard have ended.
Şimşek also said that questions about whether there is political support for this program have ended as well, saying, “It is clear that confidence in the program has also strengthened. Our message is very clear; we will strengthen fiscal policy, support disinflation, and review expenditures. Once this review is completed, we will decide which expenditures to cut, which ones to freeze, and where we will make reductions.”
Minister Şimşek stated that combating the informal economy is also the most important issue for them, adding that they will continue to take important steps in this regard.
He continued, “In other words, we will draw a framework for how we will collect taxes from informal activities, from those who do not pay taxes. Fiscal policy will support the economic program and disinflation. Our Central Bank is already doing a very good job in monetary policy. The current account deficit is contracting faster than we anticipated. This will enable us to accumulate reserves.”
“We will see a permanent downward trend in inflation in the summer months” Minister of Treasury and Finance Şimşek pointed out that banks and the real sector also have increased access to the global financial system, explaining that the sector could find lower interest rates and more resources at longer maturities compared to last year.
Şimşek emphasized that such developments also indicate an increase in confidence in the program, reminding that inflation expectations for the next 12 months have also dropped to 35 percent.
Şimşek stated that the rebalancing in the economy continues strongly, saying, “The contribution of net exports probably turned positive in the first quarter. There will of course be a slight softening in domestic demand in the coming period. This rebalancing will bring about a permanent decrease in the current account deficit and inflation. We will see how inflation enters a permanent downward trend in the summer months not only because of base effects but also with the steps we have taken in fiscal and monetary policy.”
“The country needs to rally around this program” Responding to allegations brought up based on his statement in the US, Şimşek emphasized that they used the term “local investors.”
Şimşek clarified that they talked about interest in the program on an international financial platform, so the word “local” was not directed at citizens.
Pointing out that the word is also widely used in financial jargon, Şimşek said, “In reports, speeches, there is no meaning of this term in social media or in the sense that the opposition is currently raising. I have served as a minister in Turkey for a long time. Our people know my stance. We are servants to our citizens and our nation. Our situation is never as others claim.”
Şimşek concluded his words by saying, “The country needs to rally around this program. Through this program, we will rebuild Turkey’s economic future strongly. We will increase the growth potential. We will solve our macroeconomic problems from the root. We will bring inflation down to single digits. We will ensure budget discipline. We will permanently reduce Turkey’s current account deficits, and through this, we will increase Turkey’s resilience to external vulnerabilities, external shocks. All of these are for the welfare of our people, our citizens, to ensure sustainable high growth for Turkey. It really surprised us that the word, which has a very clear meaning in an international financial platform, was exploited. Obviously, there are ill-intentioned circles. Therefore, we will focus on our program. We will implement our program, and we will succeed, God willing. Thanks to this, the welfare of our people will increase. Turkey will be more competitive, stronger.”
source: aa.com.tr/ prepared by Melisa Beğiç