CB Head: "The first phase of the global financial crisis is almost over"

Central Bank head Durmus Yilmaz said yesterday that the first phase of the global financial crisis was ending, but that it was uncertain how long its impact on the real sector would continue. Thus, a cautious stance towards the crisis is still needed, he said. Speaking at a meeting in Izmir on monetary policy, Yilmaz said the recovery of world markets would take additional time. Stating that Turkey is in good condition compared to other developing countries, Yilmaz said that eased fiscal policies could be implemented to stimulate demand, adding that the International Monetary Fund had also advocated this. In related news, State Minister for the Economy Mehmet Simsek is set to hold a press conference on recent economic developments and new government measures against the economic crisis. These will include decisive measures to protect jobs, in addition to other steps. Under the new package, the Central Bank will reportedly give banks $3 billion in financial support to ease tight liquidity.