Minister Mehmet Şimşek lists his achievements in office: 'We are truly on the right track'

Minister of Treasury and Finance Mehmet Şimşek made important statements at the "Turkey Meetings from Our Essence to the Future, Together Always" program held in Kırıkkale. Meeting with business people in the Organized Industrial Zone, Minister Şimşek shared remarkable information regarding the economic transformation process and Turkey's financial situation.

"TURKEY'S ACCESS TO EXTERNAL FINANCING HAS INCREASED"

Minister Şimşek stated that Turkey's risk premium has fallen from over 700 basis points to 270 basis points, saying, "Our external borrowing interest rate for a 10-year maturity was 9.75, and it is currently at 6.75. The Treasury issued 10-year dollar-denominated bonds. Turkey's access to external financing has increased.

Last year, in the January-May period, when the real sector paid 100 dollars in external debt, it could not find 100 dollars; it could only find 73 dollars. Today, when it pays 100 dollars, it can find 122 dollars. We have also held consultations. There is a difficult process in accessing financing, and we are aware of it. We are also aware of the cost of living.

We hear the complaints of the real sector regarding access to financing. All of these are temporary. Thanks to this program, inflation will fall, then access to financing will increase, and financing costs will decrease. Maturities will extend. There is no room for pessimism," he said.

"OUR RATING HAS INCREASED BY 2 NOTCHES"

Minister Şimşek stated that Turkey is the only country whose credit rating was increased by 3 separate international rating agencies in 2024, and continued his statement as follows:

"Moody's and Fitch increased our rating by 2 notches. S&P made an announcement recently, saying, 'We will review it in November, a rating increase is possible.' We are truly on the right track; our borrowing costs and risk premiums are falling, and our rating is rising. The real sector and the banking sector can access external financing, and our current account deficit is decreasing. We have a program, and it is working.

This decline in inflation will also continue. This is not a decline caused solely by the base effect. We are in a serious disinflation process. We will implement this program with determination. Do not have the slightest hesitation about this. Last year, the real sector approached the program with some hesitation. It was the same in the first quarter of this year. But we are determined on this matter.

We will implement the 3-year program decisively and patiently. We have started to get results. Our President's support on this issue is also very strong. We feel his strong support at every opportunity regarding the implementation of this program, and our President expresses this clearly."

Emphasizing the importance of structural transformation in the economy, Şimşek announced that they are implementing reforms to improve the quality of human capital, improve the investment environment, and deepen capital markets. He said that with the HIT-30 High Technology Incentive Program, 10-year maturity, 2-year grace period, and low-cost loan opportunities will be offered to companies that will produce 284 products aimed at reducing imports.

"WE HAVE PAID 905 BILLION DOLLARS FOR ENERGY IMPORTS"

Drawing attention to the necessity of transformation in energy, Şimşek said, "The effective use of existing resources through the mobilization of renewable energy, local oil, and natural gas resources is a necessity for energy transformation. Again, there is a technology-focused industrial move, and there are many programs like this.

Our goal is to increase value-added in industry and raise the share of medium-high and high-technology components.

We have a program for this as well. Energy transformation is very important for us. In the last 21 years, we have paid 905 billion dollars for energy imports. We have imported energy equal to 1.4 times Turkey's cumulative total current account deficit in this period. Therefore, energy transformation, especially the mobilization of renewable energy, local oil, and natural gas resources, and the effective use of existing resources, is a necessity for us," he said.

"WE WILL FOCUS ON THE FIELD OF ARTIFICIAL INTELLIGENCE, WE WILL INVEST"

Minister Şimşek also touched upon the effects of artificial intelligence on the global economy. Explaining that Turkey is in a better position in the artificial intelligence readiness index compared to similar countries, Şimşek said, "Now there is a new trend in the world: artificial intelligence. This is not like other revolutions. There is a tremendous potential to increase the efficiency of artificial intelligence. It can have serious effects on every sector. We are in a better position in the artificial intelligence readiness index than countries similar to us. But not as much as developed countries. We will focus seriously on the field of artificial intelligence and invest in the coming period," he said.

News Source: 12punto