Treasury and Finance Minister Mehmet Şimşek gives interview in America

Şimşek gave an interview to famous CNN host Richard Quest.

The questions Richard Quest directed at Şimşek, along with the messages he gave regarding inflation in particular, became a major talking point.

'ARE YOU INFLATING YOUR DEBT?'

Richard Quest asked challenging questions such as, "How are you going to do all of this without deviating from your path? Are you inflating your debt? Are you repairing the damage created by your own government?"

"WE ARE ENSURING FISCAL DISCIPLINE"

Şimşek's response to these questions was as follows: "In the long run, growth and disinflation are not mutually exclusive. In fact, in the 20-year period since we lowered inflation 20 years ago, we have increased Turkey's real GDP growth rate by approximately 1.5 compared to the previous 20 years. 

The best way to achieve sustainable high growth rates is price stability. 

Turkey's debt-to-GDP ratio is 29.5 percent; in emerging markets, the average is 69 percent. Therefore, there is nothing to exaggerate. 

We are ensuring fiscal discipline. Now let's be fair. I respect your perspective, but we experienced a large-scale earthquake last year that created a serious hole in the budget. By fiscal health, I mean dealing with the massive spending pressure that arose due to the earthquake."

EVALUATED RISING TENSIONS IN THE MIDDLE EAST

Minister Şimşek also spoke about the reflections of high tension in the Middle East on the economy. Reacting to the Israeli administration due to the tension, Şimşek stated, "This is something that keeps us up at night, because an escalation of tension is the worst-case scenario where real energy prices and supply chain disruptions would be affected. 

This is not a desirable situation at all. However, there is another aspect to it; the lack of respect for international humanitarian law also leads to many tensions.

I believe that the risk of radicalization of the peoples in the region is not low and that the world must take action for this reason. This means that Israel must respect international humanitarian law," he said.

News Source: 12punto