Published On: Sat, Feb 16th, 2019

Treasury Finance Minister says relief in economy will be felt strongly in April

Treasury Minister Albayrak meets with directors of 11 largest finance institutions in the world

Turkey’s Treasury Finance Minister ALBAYRAK participated in a meeting under the title “Step-by-Step Economy – Izmir Business World Meeting” and held in Izmir as part of his program in said city. The Minister delivered a speech on the occasion and shared important information regarding the developments in economy. He said Turkey’s current account deficit could fall below the figure of US$ 20 billion and substantial relief in the economy would be felt more strongly starting April.

ALBAYRAK noted that Turkey had passed a serious test in the face of financial attacks on its economy and entered a rebalancing period having overcome the bad experiences in August thanks to its fiscal discipline and low debt ratios.

Three important elements have always been on our agenda since July and August; Fiscal discipline, combating inflation and current account balance.  We have given a very strong response and reflex in all three areas indicated as fragile points of Turkish economy by international capital centers.

At the point we have reached today we have started to take determined steps not to face such fragile situations ever again. We can observe a much earlier recovery and stabilization process than we expected. As of end January 12-month current account balance figures will drop below US$ 20 billion. Turkey is rapidly moving from account deficit to account surplus period.

Albayrak stated that all the measures taken in a timely and determined manner showed that the positive effects of the financial markets were observed in a short period of time and that all indicators showed improvement compared to August.

The Minister also shared following; “We have experienced  about 30 percent improvement in exchange rates only since August, only. The Turkish lira enjoyed the highest positive performance compared to currencies of all developing countries. Our risk premium was 570 points and today we have reached 300 points. State bond yields with a 2-year term decreased by 950 basis points. On the other hand interest rates will fall, it’s just started. It’s good but it’s not enough. For the business world, interest rates should drop more. Not only our public banks but also private banks are following the fall process in deposit and loan interest rates.

Turkey’s economy in spite of all internal and external shocks continues to maintain its strength. We have taken all these measures and will continue to strengthen our economy in the framework of the strategy we have put forth. No one should doubt. “

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