Liquidity statement from Minister Şimşek! A link will be established with the Central Bank

Minister of Treasury and Finance Mehmet Şimşek spoke at an event organized by the Finance Account Experts Foundation.

Highlights from Minister Şimşek's speech are as follows:

"Inflation is the worst method of taxation; Turkey currently has only one priority, and that is price stability.

Reducing inflation to low single digits is a very serious task that requires time, determination, and patience. The transition period in inflation is ending as of this month.

We are currently on the threshold of the disinflation process; I believe we could see figures in the 40s in September.

"WE WILL BORROW WHEN NECESSARY"

Our Central Bank is doing whatever is necessary; we have a very good team. Our Central Bank is using all its tools, and I believe we will achieve results. If our Central Bank needs it, as the Treasury and Finance, we will borrow to withdraw liquidity beyond our needs when necessary; we do this from time to time.

We are settling back into a path for monthly inflation, a path close to our targets; the market is not at that point yet, but we believe it is manageable; additional steps will be taken when necessary.

Our work on tax exemptions and exceptions continues; we have brought it to a certain point. Our work on the tax justice and efficiency package continues.

We will not announce an action plan to combat the informal economy; we will actually carry out our fight.

The current account deficit will most likely fall below 2.5 percent of the national income this year; we are probably there as of May. Our goal is to permanently reduce the current account deficit below 2.5 percent.

If you ask what is at the heart of this program; Rebalancing. We are talking about a period where the contribution of net exports has turned positive; this is the essence of the program.

"WE WILL EXIT KKM"

We respect all criticisms and value them, but this program is working.

We will exit the KKM (FX-Protected Deposit Scheme); it may take some time, but we are on a very good path.

Central Bank reserves will most likely be in positive figures excluding swaps in the near future; concerns regarding reserves will largely cease to be an agenda item for Turkey.

As of today, the market has started to price us with a rating around 'BB', which is valuable to us."

News Source: 12punto