Babacan: "We can't let Turkey return to the economic old days"

The Central Bank is doing what it believes to be right, and will continue to do so, Deputy Prime Minister for the Economy Ali Babacan yesterday told the Foreign Economic Relations Board (DEIK) in Istanbul, rebuffing recent criticisms of the bank. Pledging that the CB will work to ensure that foreign capital comes to Turkey for the long term, Babacan added, "However, Turkey will continue to be a country where foreign capital moves conveniently, or a country which foreign capital enters comfortably. We can't take a stance that makes Turkey turn in on itself. We can't let Turkey return to the old days economically." Expressing concern over continuing economic woes in Europe, Babacan added that he doesn't see a new economic crisis on the horizon, but did urge a cautious approach by Turkey next year. "We may face new problems in financial markets," he explained. "Some countries' credit problems may grow bigger. All this may affect Turkey one way or the other." Stressing that his team isn't trying to follow economic fashions, Babacan said, "We're going to approach things differently so that we ultimately succeed economically." Babacan also pledged swift action on what he called "dangerous policies" by the US Federal Reserve and European Central Bank on capital movements. Pointing to the recent expansion of seats on the International Monetary Fund Executive Board, Babacan said, "We'd like to see the same thing on the UN Security Council." On the eve of concluding two successful years on the council, Ankara recently vowed to seek another temporary seat on the top UN body.