BABACAN: ALTHOUGH MACRO ECONOMIC INDICATIONS SHOW A SPRING ATMOSPHERE TODAY, WE WILL NOT BE OVERCOME BY LASSITUDE''

ISTANBUL - State Minister Ali Babacan said on Monday, ''although macro economic indications show a spring atmosphere today, we will not be overcome by lassitude.''
Babacan released a speech in the opening of meeting hosted by Turkish Union of Banks (TBB) Chairman Ersin Ozince. He emphasized that many positive developments have been experienced in the economy one after another.
Babacan said that macro economic indications were spoiled until today due to incompetence, negligence and corruption of politicians.
Babacan said that the main point was determination and added that the government showed a high performance in this issue and it emphasized determination factor frequently.
Noting that the government did not make concessions and it stayed away from populist approaches, Babacan said that populist implementations and social concerns should not be confused with each other.
Babacan added, ''although macro economic indications show a spring atmosphere today, we will not be overcome by lassitude. Our determination continues and will continue as it was on the first day.''
Babacan said that if Turkey lost its determination and started to give concessions, it would lose, adding that ''the government tries to implement the most convenient and right policies while it takes decisions.''
Stressing that Turkey should no longer determine short term targets, Babacan said that targets of the coming five years, ten years and even 50 years should be determined.
Babacan said that the new Public Finance Administration and Supervision Bill would be submitted to the parliament whenever the parliament was opened, adding that ''we will bring three-year budget implementation. This will be for the first time in Turkey...From now on, not only short term budgets will be made.''
Recalling that they met with very different sectors of society, Babacan emphasized that dialogue activities exceeded the borders of country.
Noting that they had bilateral consultations with banking officials within the scope of view exchange until today, Babacan said that those meetings had become traditional.
Babacan emphasized that Turkey could only eliminate its problems with the support and cooperation of all sectors and said that they especially attributed importance to the views of the representatives of banking sector.
Noting that the government completely supported the economic targets as a political will, Babacan said that they were determined to reach those targets and added that it was obvious that many targets like 20 percent inflation, five percent growth, 6,5 percent non-interest surplus, decrease in interests, increasing export, production and employment and continuing privatization would be reached and they were rapidly implementing measures against possible declination.
State Minister Ali Babacan said that there was full harmony in economy administration, adding that the parliament undertook and would continue to undertake legal regulations which would put the economy on a strong ground.
Referring to the legal regulations undertaken in economy field, Babacan said that ''a series of legal regulations which will punish misuse in banking sector in the heaviest way were also adopted by the parliament.''
Recalling that important steps were taken in privatization of State Monopolies TEKEL and Sugar Factories in the last three months, Babacan said that preliminary privatization studies in energy sector also started.
Ali Babacan said that the studies regarding 8.5 billion dollars of credit approved by the U.S. Congress continued, adding that the government would mainly focus on inflow of foreign capital to Turkey and try to improve the investment environment.
Babacan said that meetings held with bankers contributed significantly to formation of a healthy and good operating sector, adding that the government would deal with the problems of the banking sector.
Stating that Turkey saw its future clearly now, Babacan said, ''positive developments in economy are not virtual or temporary. Problematic periods, populist implementations, unnecessary tensions and disputes were left behind and should be left behind. Turkey is advancing towards stability rapidly. Important developments in policy and social life also make themselves be felt in economy.''
Stressing that the steps which the government took on EU process were very important, he said that successes on EU process and the point which Turkey reached in nine months were of great importance for Turkey.
Babacan said that developments in democracy, human rights, and freedoms were sine qua nons of economical improvement and stated that all of those things were only the beginning. He added that construction of a lasting and sound economic structure would continue.
Babacan said Treasury Undersecretary Ibrahim Canakci and Central Bank Governor Sureyya Serdengecti would make detailed presentations in the meeting.
TBB Chairman Ersin Ozince said that the meeting was the second meeting which was held to exchange views on economy between economy administration and TBB members.
BABACAN: ''WE EXPECT A MUCH STABLE AND CALMER ECONOMIC ATMOSPHERE FROM NOW ON''
Babacan said that they had the chance to listen to problems of banking sector in the meeting and stated that they discussed mainly general economic problems and what should be done after the fifth review in the meeting.
Upon a question on cost of unregistered bonds of Imar Bankasi to economy, he said, ''all explanations about Imar Bankasi will be made by first hand and in coordination. The Banking Regulation and Supervision Agency (BRSA) continues its activities regarding cost of bonds. It is an issue on which BRSA is working closely.''
Asked whether or not a new stand-by agreement would be signed with the International Monetary Fund (IMF) after the Fund postponed debt of Turkey, Babacan said, ''we have not yet decided how and in which format we will work with IMF after October 2004. How and in which format we will work with international organizations for 2005 will come to the agenda in mid-2004.''
Upon a question on preparation of three-year budget, Babacan said that when they prepared 2005 budget as of 2005, a three-year budget covering 2006 and 2007 would be prepared within the scope of implementation which came to the agenda within the Public Financial Administration and Control Draft Law and noted that financial policies in medium and long term would also be taken up at the macro level the following years.
Upon another question, he said that the rate of debt roll-over was expected as 77 percent on the last five months of this year.
Turkish Union of Banks (TBB) Chairman Ersin Ozince said that they focused on economic program rather than problems of banking sector in the meeting.
Stating that they stressed in the meeting that course on economy was good but it should be carried on in a determined way in the meeting, Ozince said, ''Mr. Babacan used some expressions on normalization of source transfer costs and said that it will be included especially in 2004 program and transaction costs in banking sector will be decreased gradually.''
When a reporter said that there were some contradictory news stories regarding situation of those who took bonds from Imar Bankasi and asked how it would affect banking sector, Ozince said, ''we are suffering from the harm such issues have inflicted on the banking sector. We hope that BRSA will do what is necessary and remove some reservations on such issues soon. We, as the Union, want uncertainties to be removed rapidly.''
(EÖ-AÖ) 11.08.2003