Turkish Treasury and Finance Minister Berat Albayrak
Treasury and Finance Minister Berat Albayrak said on Thursday that Turkey fully understood and recognised all its domestic challenges and will come out of the current market volatility stronger.
In a conference call with investors, Albayrak said Turkey was now dealing with the market anomaly and has a banking sector which is healthy and strong.
The finance minister added that Turkey has no plans to go to the International Monetary Fund (IMF) for support over its currency crisis.
The Turkish economy is of great importance for both Germany and the EU, Germany Finance Minister Olaf Scholz said Thursday, according to Turkish ministerial sources.Turkish Finance Minister Berat Albayrak and his German counterpart Olaf Scholz spoke over the phone about the U.S. sanctions and steps taken against Turkey's economy, according to a statement from the ministry.The two ministers have agreed to take steps to enhance economic ties.Albayrak said that support offered to Turkey proved promising for positive relations with the EU.The two ministers decided to meet in Berlin on Sept. 21, according to the statement. German, Turkish ministers to meet before Erdoğan-Merkel talksErdoğan, Merkel talk over phoneGerman MediaMarkt says in Turkey for the long run
Germany stresses importance of Turkish economy
Before he spoke, the Turkish lira strengthened more than 3 percent. The currency shrugged off U.S. comments ruling out the removal of steel tariffs on Turkey even if it frees an American pastor who lies at the centre of the complex feud between Washington and Ankara.
The currency gained some support from the announcement late on Wednesday of a Qatari pledge to invest $15 billion in Turkey.
Albayrak stated that Turkey would meet its fiscal target through tighter spending. It would also focus on attracting foreign direct investment, he said.
Turkey will navigate through U.S. sanctions with other partners
A lot of countries across the globe are facing the problem of U.S. sanctions and the response to that should be a coordinated one, Albayrak said.
Speaking to around 6,000 investors in his first such call since being appointed to the cabinet in July, Albayrak, said Turkey will navigate this period of U.S. sanctions with other parties such as Germany, Russia and China.
Turkish government to see certain expenditure cuts
The minister announced that the government will see certain expenditure cuts and the revenue side was showing positive performance.
Albayrak said he expected a 6 billion lira ($1.04 billion) primary surplus for the end of this year. ($1 = 5.7711 liras)
Turkey won't hesitate to support banking sector
He also said that Turkey won't hesitate to provide support to the banking sector, which was capable of managing current volatility, and there has not been major deposit flow from banks lately.
Said Ahmad Penjweny, an Iraqi cleric who represents the International Union of Muslim Scholars in northern Iraq’s Kurdish region, has called on the Muslim world to support Turkey against recent speculative attacks on its economy and currency.Penjweny told Anadolu Agency on Thursday that Turkey had remained the target of international and regional scheming since the failure of 2016’s coup plot against it.“This economic war is just another part of the conspiracy against the ruling Justice and Development (AK) Party led by President Recep Tayyip Erdoğan,” he said.Uzbekistan calls for Turkish investments“The heroism shown by Erdoğan -- and the people’s noble support of the government -- will bring shame to the perpetrators, both here and in the hereafter, just like what happened in the failed coup attempt."According to Penjweny, neither Egypt nor the Arab Gulf States enjoy such a strong bond of love between public and government as is seen in Turkey.“There is no love lost between public and government in these countries,” he said. “The people of these countries have been angered by the campaigns waged against Turkey and pray that the dark cloud will dissipate soon.”Macron tells Erdoğan Turkey's economic stability important for France“If the [2016] coup attempt in Turkey had succeeded,” he added, “the Turkish people would be worse off than their counterparts in Egypt, Palestine and the Gulf.”Penjweny urged Muslim states to stand by Turkey, noting that countries like the U.S. would continue to “play” in the region unless the Muslim world -- as the defenders of freedom and justice -- closed ranks against foreign interference and hegemony.“U.S. President Donald Trump is a paper tiger,” he asserted, adding that weak Middle Eastern governments had allowed the U.S. to maintain its hegemonic position unchallenged.Iraqi Turkmen rally to defense of Turkish economy, lira“The U.S. seems invincible to those prepared to surrender, but it is nothing,” he added. “God willing, these incidents [i.e., speculative attacks on Turkey’s economy] will only serve to shorten its lifespan.”Turkey-U.S. relations took a nosedive on Aug. 1, when Washington imposed sanctions on Turkey’s interior and justice ministers after Ankara refused to release an American pastor who faces terrorism-related charges in Turkey.Last week, U.S. President Donald Trump upped the ante by doubling U.S. tariffs on Turkish aluminum and steel imports.In response, Turkey raised tariffs on several U.S.-made goods, including alcohol and tobacco products and vehicles.Northern Cypriot people stand with Turkey: MinisterAnkara municipality to stop issuing licenses for McDonald’s, Burger King'We won't let financial attacks hurt Turkish industry'
Iraqi cleric urges support for Turkey amid row with US
He added that Turkey had already taken measures to curb forex funding and corporates are in a comfortable position to meet short-term liabilities.
JP Morgan said that moves by Turkish authorities to curb the lira's fall showed they were committed to stabilising the currency with technical measures such as restricting foreign exchange swaps and cancelling repo auctions to push up the average cost of bank funding.
Turkey will not compromise on fiscal discipline
Turkey will not compromise on fiscal discipline and reducing inflation is a top priority, Albayrak said.
Albayrak expressed that Turkey was not a highly leveraged country and debt stood at 137 pct of GDP in the first quarter of 2018. All ministries have a mandate for ambitious savings, he added, and investment portfolios will be reviewed.
Turkey’s independent stance remains a thorn in the side of those countries -- especially the U.S. -- trying to impose their will on the region’s people, the head of Tunisia’s Patriotic Construction Party said.Riyad Suaybi is a Tunisian academician and politician with a PhD in political philosophy.Praising Turkey’s resistance against the recent attacks on its economy, he said: “The Turkish stance is a model for all people of the region. It sets an example for those who demand independence from the U.S. and other foreign powers.”“Turkey’s reaction is based on the spirit of unity derived from its national responsibility and cultural and religious bonds,” he added. “Ankara acts with a national will determined to protect its sovereignty.“The measures and steps that Turkey has taken, despite the economic challenges it faces, are in line with its national sovereignty and interests,” Suaybi said.Turkey, he continued, had adopted more “independent and authentic” policies -- foreign and domestic -- since President Recep Tayyip Erdogan’s Justice and Development (AK) Party came to power in 2002.“For Washington, Turkey -- or any other country in the Middle East -- cannot set its own foreign policy,” he said. “Washington’s recent behavior has proven this.”Suaybi also decried recent increases in U.S. tariffs on Turkish steel imports.“This is yet another patronizing initiative by the U.S., which U.S. President Donald Trump is trying to impose on the Middle East and North Africa,” he said.The party leader went on to assert that the “true reason” for the current row between Turkey and the U.S. was the fact that Ankara was refusing to play by Washington’s rules.Suaybi urged Turkey to bolster its relations with the BRICS group of nations (Brazil, Russia, India, China and South Africa), which, he asserted, “could lead to major geostrategic changes in the future”.The Arab world, he went on to say, continues to struggle with “division, tyranny and sectarianism”, making it vulnerable to the threat of foreign intervention.Without naming any specific states, Suaybi said that “certain” Arab countries -- members of the so-called “moderate axis” -- had opened the door to foreign intervention in the region.
Tunisia party head hails Turkish stand against hegemony
Capital controls not on agenda
Turkey has never implemented non-market measures and capital controls will never be on the agenda, the finance minister added.
Structural reforms and labour market flexibility are also a priority, he said.
The head of the Uzbekistan Agriculture Commission has extolled the benefits of investing in his country before Turkish investors.Kemal Abdullaev on Thursday wished for warmer relations in every field of trade and investment with Turkey."With zero customs duty, we, as Uzbekistan, together with neighboring countries, have a market with a population of 350 million people," Abdullaev said in the informative meeting organized by the Adana Chamber of Commerce (ATO).Noting that operating costs were very low in Uzbekistan, he added that people, who would invest in Uzbekistan's agriculture would benefit from a "free land rent" opportunity."We will not take land tax for five years," Abdullaev said.He also highlighted that Uzbekistan offered zero tax and zero VAT opportunities for small- and medium-scale companies.Atila Menevse, head of the ATO, said the situation of domestic and foreign markets should be explored very carefully and the advantage of market gaps should be taken."As the ATO, we are ready to fulfill all the responsibilities on us to improve the trade relations between the countries," Menevse added.
Uzbekistan calls for Turkish investments
Turkish President Recep Tayyip Erdoğan talked to his French counterpart Emmanuel Macron in a phone call on Thursday.Erdoğan and Macron emphasized the importance of improving bilateral investment, as well as economic and trade relations, a presidential source said.During the phone call, Macron told Erdoğan that Turkey's economic stability is important for France.Iraqi Turkmen rally to defense of Turkish economy, liraRelations between Ankara and Washington have been rocky since Aug. 1, when the U.S. imposed sanctions on two Turkish government ministers after Turkey refused to release an American pastor facing terrorism-related charges.Last week, U.S. President Donald Trump upped the ante by doubling U.S. tariffs on Turkish aluminum and steel imports.In response, Turkey raised tariffs on several U.S.-made goods, including alcohol and tobacco products and vehicles.Northern Cypriot people stand with Turkey: MinisterAnkara municipality to stop issuing licenses for McDonald’s, Burger King'We won't let financial attacks hurt Turkish industry''Putin may meet leaders of Turkey, Iran at summit in Sept'Turkish traders suspend $50mln iPhone imports after Erdoğan callTurkey, China are neighbors and partners, says envoy
Macron tells Erdoğan Turkey's economic stability important for France
A local municipality in the Turkish capital Ankara has decided to halt issuing new licenses for U.S. franchises after a majority of its council voted in favor of the motion. Ankara’s Keçiören municipality has taken the unprecedented decision following the U.S.’s latest tariffs and sanctions targeting Turkey, deemed by many as an “economic war” against its NATO ally. Under the new decision, which is effective immediately, popular U.S. franchises such as fast food giants McDonald’s and Burger Kıng, in addition to café mogul Starbucks, would be unable to open new branches in the district. The municipality also put up billboards calling on citizens to come out in support of the national currency, which has suffered losses following recent U.S. decisions. “We call on everyone to take concrete steps toward a national stance on the side of our government against all threats and practices aimed at creating an atmosphere of chaos and interfering in our country’s judicial process,” a statement by the municipality read. Turkey and the U.S. are currently experiencing rocky relations following Washington’s imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing American Pastor Andrew Brunson, who faces terrorism charges in Turkey.U.S. President Donald Trump on Friday ramped up his attack on Turkey by doubling U.S. tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively, causing the lira to lose value against the dollar. Turkey in its turn increased tariffs on several U.S. products, including alcohol, tobacco and cars, according to a new presidential decree published Wednesday in the official gazette.Turkish traders suspend $50mln iPhone imports after Erdoğan callTurkey, China are neighbors and partners, says envoyTurkish lira firms against dollar ahead of Albayrak presentation
Ankara municipality to stop issuing licenses for McDonald’s, Burger King
Necessary steps will be taken against those who aim to damage Turkish industry through financial attacks, said Turkey's industry and technology minister on Thursday."We will not let our industry be adversely affected by this period," said Mustafa Varank in a statement.Varank said that Turkey will emerge victorious from the recent economic attacks."Turkish industry stands firm with its government," he added.Turkish traders suspend $50mln iPhone imports after Erdoğan callTurkish lira firms against dollar ahead of Albayrak presentation
'We won't let financial attacks hurt Turkish industry'