Deppler: "Turkey doesn't need another IMF program"

Speaking to this week's Forum Istanbul-2008 meeting, International Monetary Fund European Department head Michael Deppler yesterday said there is no need for a new IMF program for Turkey, saying that the country's economy has grown stronger over the past five years. Addressing the impact of current US economic woes on the global economy, Deppler said, "The US is experiencing a severe economic slowdown, and this will affect Europe and Turkey." Deppler said the IMF anticipates Turkey's annual growth rate will fall to 4 percent. Urging Turkey to maintain its current fiscal policies to cushion the impact of the global recession, Deppler also called for steps to boost foreign investors' confidence. He said Turkey needs to reform its tax system, curb the informal economy, and make the labor market more flexible. Also speaking to the forum, State Minister for the Economy Mehmet Simsek said that over the last five years Turkey has substantially reduced its budget deficit and reformed its financial system and banking sector, adding that thanks to these achievements, its economy had become more resistant to global shocks. Simsek also said the flow of foreign capital to Turkey should continue.