Babacan: "Turkey will emerge from the crisis stronger"

Speaking at a meeting of the Economic Coordination Board (EKK) held in the central Anatolian province of Konya, Deputy Prime Minister for the Economy Ali Babacan yesterday said that Turkey would emerge from the global economic crisis stronger with a low debt stock and sound financial system. Stating that this year will go down in global history as a "lost year" due to the crisis, Babacan said, "Thanks to the measures we took, Turkey will have a very light debt burden and a stronger financial system in the post-crisis period." He added, "Turkey did not face a financial meltdown due to the crisis. Economic measures and arrangements in the banking sector fulfilled by the government prevented Turkey from experiencing a financial crisis." Babacan said that they have been working hard for the post-crisis period, adding that they would soon announce economic targets for this period. Babacan also said that the EKK's next meeting would take place in the southeastern province of Sanliurfa and would focus on problems of nine provinces as part of the Southeastern Anatolia Project (GAP). Also speaking at the meeting, Arzuhan Dogan Yalcindag, chairwoman of the Turkish Industrialists and Businessmen's Association (TUSIAD), praised the government's strategy of diversifying the country's exports markets at a time of global economic crisis, but warned against the expanding budget deficit due to the crisis. Stating that both Turkey and the world have left behind the worst phase of the crisis, Yalcindag added, "As businesspeople, we expect trust, stability and predictability. To attain these goals, businesspeople are expecting a medium-term economic program." Also addressing the meeting, Finance Minister Mehmet Simsek said the government expects the budget deficit to total 5 percent of gross domestic product this year. There are plans to take more measures to tackle the deficit, he said. The government will strengthen the powers of the Finance Ministry’s tax office and limit local government spending as part of a medium-term economic plan, he also announced. The government will also introduce a fiscal rule and strengthen control of spending at state companies, he said.