Mehmet Şimşek criticizes previous economic policies

Treasury and Finance Minister Mehmet Şimşek continues his contacts as part of a Gulf countries program covering the United Arab Emirates (UAE), Qatar, and Saudi Arabia. 

Speaking at an event organized by the Future Investment Initiative Institute in Riyadh, Saudi Arabia, which was also attended by IMF Managing Director Kristalina Georgieva, Şimşek delivered various messages to international investors regarding Turkey.

Stating that Turkey has "returned" with a new program and a new team, Şimşek said, "We have a very comprehensive structural reform agenda. Political uncertainty is disappearing."

Criticizing previous economic policies, Şimşek said, "It is easy to lose trust, but it takes time to regain it. If you look at the last few years, we had problems with our monetary policy framework."

Şimşek stated the following: 

"We have five years ahead of us. There is a new team at the Central Bank, and they are doing whatever is necessary to bring inflation under control and reduce it to single digits. We have a program for this purpose.

It is easy to lose trust, but it takes time to regain it. If you look at the last few years, we had problems with our monetary policy framework. However, actions are more effective than words.

"INFLATION EXPECTATIONS WILL BE ANCHORED"

In addition to selective credit tightening, there is also conventional monetary tightening and quantitative tightening. This will help anchor forward-looking inflation expectations.

We have also announced a very comprehensive, calendar-based structural reform agenda so that market participants can evaluate our performance. I believe we have what it takes to regain people's trust and that investors will return.

There are good signs for this as well. What really matters is patience and perseverance. We believe we have President Erdoğan's support. Therefore, concerns regarding the longevity of the program are unfounded."

"POLICY STANCE IS TIGHTER THAN IT APPEARS"

Emphasizing that the monetary policy stance is tighter than it appears, Şimşek said, "The new normal is that we are implementing sound policies that build trust. I think we are on the right track because we are implementing the right policies."