Minister Şimşek evaluates 'investor' interest following US visit: 'There is great interest in Turkey'

Minister of Treasury and Finance Mehmet Şimşek made evaluations regarding his US visit and the International Monetary Fund (IMF) and World Bank Spring Meetings.

While stating that the meetings were productive, Şimşek also said that they found opportunities to meet with many international organizations such as the World Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, and the European Investment Bank.

Şimşek noted that they also attended the IMF and World Bank meetings as well as the G20 meetings, explaining that they held more than 20 investor meetings with large groups and came together with hundreds of investors.

"HAS A STORY"

After stating that they gave presentations to investors about the Medium-Term Program (OVP), Şimşek used the following expressions:

"There is great interest in Turkey. There were days when we attended meetings from 7 in the morning until 11 or 12 at night. We held 18 programs in Washington on Friday. Therefore, there is very strong interest in Turkey. Because we are one of the rare countries with a program that has a story and credibility. Turkey's story is already strong; it is a large, developing economy. We are strengthening macroeconomic foundations with disinflation, structural reforms, and fiscal discipline, and this attracts a lot of interest. That is why investor interest was, in a word, excellent."

"WE ARE REVIEWING EXPENDITURES"

Mehmet Şimşek recalled that at the investor conference held in New York last year, there were doubts regarding the implementation of the program, and stated that the question marks in this context have ended.

Stating that questions regarding whether there is political support for this program have also ended, Şimşek said, "It is clear that confidence in the program has also solidified. Our message is very clear: we will strengthen fiscal policy, we will support disinflation, and we are reviewing expenditures. Once this review is finished, we will look at which expenditures we will cut, which ones we will freeze, and where we will make cuts."

Minister Şimşek stated that combating the informal economy is also the most important issue for them, and said that they will continue to take important steps in that regard.

Şimşek made the following remarks regarding the fight against the informal economy:

"In other words, we will draw a framework with the approach of how we can collect taxes from informal activities and those who do not pay taxes. Fiscal policy's support for the economic program and disinflation will strengthen. Our Central Bank is already doing a very good job in monetary policy. The current account deficit is narrowing faster than we anticipated. This will allow us to accumulate reserves."

POINTED TO THE GLOBAL FINANCIAL SYSTEM

Minister of Treasury and Finance Şimşek pointed out that the access of banks and the real sector to the global financial system has increased, explaining that the sector can find more resources at lower interest rates and with longer maturities compared to last year.

Drawing attention to the fact that such developments show that confidence in the program has increased, Şimşek reminded that inflation expectations for the next 12 months have also fallen to 35 percent.

Stating that rebalancing in the economy is also continuing strongly, Şimşek said, "The contribution of net exports most likely turned positive in the first quarter. Of course, there will be some softening in domestic demand in the coming period. This rebalancing will bring about a permanent decline in the current account deficit and inflation. In the summer months, we will all see how inflation enters a permanent downward trend, not just because of the base effect, but also due to the steps we have taken in fiscal and monetary policy."

TOUCHED UPON THE AGENDA

Responding to the allegations brought to the agenda based on his statement in the US, Şimşek drew attention to the fact that they used an expression in the sense of "local investors."

Şimşek noted that they were talking about the interest in the program on an international financial platform, and therefore the word "local" was not directed at citizens.

Pointing out that the word is also used extensively in financial jargon, Şimşek said, "In reports and speeches, this has no equivalent in the sense that the opposition is currently voicing on social media. I served as a minister in Turkey for a long time. Our nation knows my stance. We are servants to our citizens and our nation. A situation as others claim is never the case for us."

Stating that the country needs to unite around this program, Şimşek concluded his words as follows:

"Thanks to the program, we will strongly rebuild Turkey's economic future. We will increase growth potential. We will solve our macroeconomic problems at the root. We will reduce inflation to single digits. We will ensure budget discipline. We will permanently reduce Turkey's current account deficits, and thanks to this, we will increase Turkey's external vulnerabilities and resilience against external shocks. All of this is for the welfare of our nation and our citizens, and for our Turkey to achieve sustainable high growth. It really surprised us that the use of a word with a very clear meaning on an international financial platform was exploited. It is clear that there are malicious circles. Therefore, we will focus on our program. We will implement our program, and we will succeed, God willing. Thanks to this, our nation's welfare will increase. Turkey will be more competitive and stronger."

News Source: 12punto