LISBON - State Minister Ali Babacan said late on Tuesday that they would reach the growth rate target of five percent in 2003, and it would not be a surprise if they exceeded the target.
Noting that they would not make any concession from the implementation of the government's economic program, Babacan said, ''our program will actually finish at the end of 2004. After 2004, we don't want to demand a new loan by signing a new stand-by deal with the IMF.''
During his flight to Portuguese capital Lisbon together with Prime Minister Recep Tayyip Erdogan, Babacan answered questions of reporters.
Replying a question about latest economic developments, Babacan said that results were quite positive and promising, adding, ''January and February were the months during which markets were hesitant about start of a war while March was the month when the war happened. We reached growth rate in those months and this inspired hope.''
When asked about preparation of letter of intent to the IMF, Babacan said, ''I have always been saying that the period of fifteen laws in fifteen days had ended. All legal arrangements should be made in a healthy way. Laws which have been adopted should not be corrected again and again. You saw how much we suffered from the labor law. It took months to correct it again. There are more than fifty articles in the public procurement law. These are the laws which were adopted hastily due to pressure of international organizations and which we had to correct again due to problems faced in implementation. We don't want to face such process again. There are two laws left regarding the fifth review. They are the social security agency and social security agency for the self employed. And they are adopted in a few weeks.''
When asked whether or not he thought a stable environment had been provided in the economy, Babacan said, ''nobody should doubt about it. Our economic program's all details are mentioned in the letter of intent about the fourth review. Whole world and finance circles accept that this program is appropriate to Turkey. Nothing happens as long as we implement it correctly. Delay in some legal arrangements should not cause anybody to feel concern. These are the reforms which have been postponed for years in Turkey. It is not so important if they are adopted a few weeks later. Good days await Turkey. Any deviations from the program is out of question.''
''After 2004, we don't want to demand a new loan by signing a new stand-by deal with the IMF. Actually, the IMF tells us, 'we have given sufficient loan to you so don't request a new loan'. We don't want to add a new burden on our current debt to the IMF so does the IMF. But this does not mean that we will cut all ties with the IMF or we will make a different and radical change,'' he said.
''Decrease in Turkey's borrowing stock to a reasonable level is very important. With this objective, powerful finance policies will absolutely continue. Actually structural reforms are important reforms as to prevent new deficits. We believe that those deficits would decrease and causes of those deficits would be removed with rapid implementation of these reforms. From now on, everybody can continue his investments without any fear,'' he said.
When asked what kind of recommendation he had made during his meeting with businessmen, Babacan said they had discussed especially economic issues.
Noting that they had also discussed foreign policy issues, and he had explained developments about the fifth review, Babacan said that they had taken up the content of discussions that the IMF delegation would start to hold on July 9.
Stating that IMF's Turkey Desk Chief Reza Moghadam would come to Turkey for the first time as the desk chief, Babacan said that they would finalize discussions of the fifth review altogether, and they would prepare a new schedule for the sixth review.
(MS) 01.07.2003