ISTANBUL - State Minister Ali Babacan said on Friday that at current stage, the increase in consumer prices index (CPI) and five percent of growth rate would not be revised, adding, ''but it seems that that current deficit target needs a little revision. Officials in Ankara are working on it.''
Babacan said they supposed that current deficit would not reach frightening dimensions even if it was revised.
Babacan answered questions of reporters after attending a meeting on ''Turkey in Process of Transformation and Adjustment'' organized by Deutsche Bank.
Replying a question which said, ''it is observed that balance of external payments developments exceeded the government's targets. Seventy percent of the target was achieved in first three months. Can this create a problem in terms of macro economic targets? Will you review this?'' Babacan said, ''
''At the talks we lastly held with the IMF, we decided that it is currently not necessary to revise the inflation based especially on consumer price index, that is, increase in CPI. We won't revise also the five percent growth target. But, it seems that that current deficit target needs a little revision. Officials in Ankara are working on it,'' he said.
''However, we estimate that current deficit would not reach frightening dimensions even if it is revised. Because, as you know that we are currently implementing floating currency policy,'' Babacan added.
Replying a question about decrease in interest rates, Babacan said, ''as the government, we don't want to intervene in a decision on interest rates that the Central Bank will take independently.''
Recalling that the government had adopted a number of new bills on recovery of investing environment in Turkey one after the other, Babacan said that the bill on foreign capital was on the first place of the parliamentary agenda, there was a bill on establishment of Investment Promotion Agency, which would offer facilities for operation and working of foreign companies and workers in Turkey, adding that the bill on inflation accounting would come together with the second tax reform package.
Replying a question about decrease in U.S. dollar currency, Babacan said, ''we don't have any commitment about currency. Currency rates are set by the market. This is totally related with the market balances.''
(MS-AY) 30.05.2003