Turkey Aims To Decrease Inflation Rate To 12 Percent In 2004

ANKARA - The National Program to be presented to the European Union (EU) emphasizes that Turkey aims to decrease the inflation rate to 12 percent and to the average rate in EU member countries in the following years.
Sources told A.A correspondent on Thursday that the economy chapter of the National Program listed macro economic objectives as settlement of sustainable economic growth, permanent decrease in inflation, and a proportion of public debt stock to Gross Domestic Product (GDP) in line with the average in EU countries.
The sources said that the aim of the finance policy was to reduce the public debt stock to a sustainable level, decrease public deficit permanently, ensure a balanced budget and support fight against inflation.
In the chapter on monetary policies and autonomy of Central Bank, the target of monetary policy is announced as decreasing inflation in the short term and ensure price stability in the medium term.
The program targets as decreasing the inflation rate to 12 percent in 2004 and to the level in EU member countries in the following years.
When necessary preconditions occur, the Central Bank will use short term interest rates as a means of policy and inflation targeting policy will be put into practice.
The National Program notes that floating exchange rate regime will be continued.
Stating that arrangements which will provide increase in employment creation capacity in economy will be made under the title labor market, the program emphasizes that employment creation capacity of small and medium scale enterprises will priorly be made use of within this framework.
The National Program says that structural reforms will continue.
The role of state in economy will be reduced and its efficiency will be increased through privatization. The National Program emphasizes that Turkey aims to form a transparent and efficient public management.
The banking system will be restructured in a way to provide source for the private sector and the private sector's role in economy will be increased.
In the macro economic developments chapter, the developments in 2002 are listed and initiatives made within the scope of adjustment to Copenhagen criteria are explained.
The Program says that Halkbank privatization is foreseen to be completed in 2004 and later Ziraat Bankasi will be privatized.
The National Program stresses that privatization of Vakifbank is expected to be concluded this October.
The Program also states that Turkey aims to restructure Agriculture and Rural Affairs Ministry and agricultural State Economic Enterprises (SEEs) and adds that Soil Products Office (TMO) will be restructured and the companies except TMO are foreseen to be privatized.
(BRC-AÖ) 19.06.2003