ISTANBUL - International Monetary Fund (IMF) delegation headed by Turkey Desk Chief Reza Moghadam met on Tuesday with Turkish Industrialists' and Businessmen's Association (TUSIAD) Chairman Tuncay Ozilhan and some members at dinner in Istanbul.
Following the meeting, Ozilhan told reporters that they believed that the foreign exchange rate should not be formed by pressure and said, ''therefore, we don't have any problems with formation of the exchange rate.''
Ozilhan noted that they exchanged views with IMF delegation and they stated that macro economic balances were generally on the right track.
They told IMF delegation that inflation maintained decreasing trend and first three-month performances and growth were positive, Ozilhan said.
Ozilhan pointed out that they told IMF that this year's targets would be kept.
They told IMF that they expected decrease in interest rates after completion of the fifth review, Ozilhan noted.
Ozilhan said, ''but, we stated that 30 percent real interest is high in this recent days. We said that interest rates will decrease with the confidence built in the markets as all conditions of the IMF program are fulfilled in coming days and that we will reduce the inflation.''
''Therefore, what we expect is continuation of this positive atmosphere by ending the fifth review without any problems and completing the sixth review two months later, and provide the most important part of this program by a good administration,'' Ozilhan stated.
Ozilhan added, ''we think that a program without IMF can be made after accomplishment of this IMF-backed program. We wish that the government will fulfil the program believing this and help better markets giving this message to the public opinion.''
Upon a question about the response of the IMF delegation to their views, Ozilhan said that the IMF delegation would come to a decision after its contacts in Ankara.
Ozilhan noted that they told the IMF delegation that the laws regarding social security, important articles of the fifth review, and laws of Execution and Bankrupt Law were on the agenda and that the government would fulfill them.
When asked if the non-interest surplus target would be achieved, Ozilhan said that ''certain circles have difficulties about the exchange rate. But we think that the exchange rate should be left on its own and let it come to a balance. Therefore, we don't have any problem about the formation of the exchange rate.''
''Turkey went through big difficulties. We were on the edge of a disaster, but we started to overcome it. Yet it is not possible to prevent the repetition of such economic crises in a short time without taking radical measures. Everybody has to return back and look behind. They should see the amount of the foreign and internal debt of Turkey reached due to poor administration in the last 15-20 years,'' he added.
(BRC-Öª-AÖ) 09.07.2003