Linn: I Am Pleased With Turkey's Keeping Its Economic Recovery

ANKARA - World Bank Vice-President Johannes Linn for Europe and Central Asia Region expressed his satisfaction over the continuation of economic recovery.
Holding a press conference at the World Bank Office in Ankara, Linn gave information about contacts he held in Turkey in the last three days.
Noting that the issues of Turkey's economic program and the World Bank's country assistance strategy were taken up during his contacts, Linn expressed his satisfaction over the continuation of economic recovery.
Pointing out that Turkey had recorded a significant progress in its disinflation efforts, Linn underlined that Turkey should continue implementing a prudent fiscal policy and sustained implementation of structural reforms by taking into consideration its high level of debt.
He also noted the importance of protecting the most vulnerable groups of the population through an effective social safety net, within the available fiscal resources.
Linn expressed the World Bank's continued strong commitment to helping Turkey attain high quality basic education accessible to all, adding that additional efforts were required to improve girls' completion rates, and to target social assistance more effectively to the poorest.
Linn took note of the implementation of important policy measures including the adoption of the first stage of tax reform and implementation of the Public Procurement Law, and emphasized the need to accelerate those structural reforms which have been delayed.
In this context, he welcomed the authorities' intention to fully institutionalize the system of direct income support for farmers through new legislation, and plans to move quickly in other key areas such as reform of the social security system, public financial management and privatization.
For the reform efforts to be successful, he stressed the need to maintain strong and independent regulatory bodies. Linn also welcomed the government's intention to ensure rapid passage of the new Foreign Direct Investment law and the law establishing an Investment Promotion Agency.
Linn said that further progress in these areas would be made during the course of the coming month to allow the completion of discussions on extension of 375 million U.S. dollars available under the Economic Reform Loan (ERL) and preparation of the third Programmatic Financial and Public Sector Adjustment Loan (PFPSAL 3) of 900 million U.S. dollars in place of the remaining amounts under PFPSAL II.
Linn also discussed areas of future support by the World Bank. The objective of the World Bank's proposed Country Assistance Strategy for the next three years is to help Turkey implement fundamental reforms to reduce its economic vulnerability and achieve high and stable growth, contributing to a better quality of life for its population and Turkey's preparation for EU membership.
He noted, ''it was agreed that the Bank's assistance strategy, in accordance with the government's priorities, will focus on four main areas: Sound macroeconomics and governance, equitable human and social development, attractive business climate and knowledge, and strong environmental management and disaster prevention. It is expected that the Country Assistance Strategy for 2004-2006 fiscal years will be finalized during the summer.''
(UK-MS) 31.05.2003