ERDOGAN MEETS WITH VISITING RUSSIAN FM
Visiting Russian Foreign Minister Sergey Lavrov yesterday was received by Prime Minister Recep Tayyip Erdogan and Parliament Speaker Bulent Arinc. During their meeting, Erdogan sought Russia's support for ending the isolation imposed on the Turkish Republic of Northern Cyprus (TRNC). Lavrov praised the positive Turkish and Turkish Cypriot position in the Cyprus dispute, especially after the 2004 referendum held for the Annan plan, and expressed the willingness of Russian businesspeople to invest in the TRNC. The Iranian nuclear dispute and so-called Armenian genocide claims were also discussed at the meeting. During the meeting with Erdogan, Lavrov presented the Turkish premier with a Russian state medal sent by Russian President Vladimir Putin. /Star/

ERDOGAN: "6.5% AVERAGE GROWTH IS TARGETED IN NINTH DEVELOPMENT PLAN"
Addressing yesterday's Supreme Planning Council, which convened to discuss a draft of the Ninth Development Plan, Prime Minister Recep Tayyip Erdogan said that 6.5% average growth was targeted in the period covered by the plan, adding that inflation was expected to fall to 3% by the end of the period. "We expect that our economy will grow by 6.5% and create 620,000 jobs every year," said Erdogan, adding that gross domestic product (GDP) is expected to reach $690 billion by 2013. "Per capita income is expected to reach $8,723, inflation to fall to 3%, exports to reach $214 billion, and tourism revenues to climb to $36 billion," added Erdogan. /Aksam/

EU PREPARING TO WARN TURKEY OVER OPENING ITS HARBORS TO GREEK CYPRIOTS
Harsh warnings on Turkey's refusal to open its harbors to Greek Cypriots appear in a draft summit final declaration of the European Union heads of state and government meeting set to begin on June 15. In it, the EU calls on Turkey to speed up its reform process, along with the appearance, for the first time, of certain expressions about Turkey implementing the supplementary protocol (and thus opening its ports). The draft document says that the speed of Turkey's negotiations will depend on it fulfilling its obligations and implementing the supplementary protocol this year, agreeing to conditions emerging from the Customs Union and implementation of components appearing in the last accession partnership document. /Cumhuriyet/

NETHERLANDS PARLIAMENT FACES BILL CRIMINALIZING REJECTION OF ARMENIAN "GENOCIDE"
Following France and Belgium, the Netherlands' Parliament is also set to consider a bill which would criminalize rejection of the so-called Armenian genocide. The proposal was prepared by the Christian Unity Party represented by three deputies in the 150-seat Parliament. Meanwhile, a bill regarding pro-Armenia Belgium's genocide in Congo has been presented to Britain's Parliament. The bill, initiated by the efforts of a joint British-Turkish platform, calls on the Belgian government to face its massacre in Congo in 1885-1908 and apologize to the Congolese people./Turkiye/

SHIP WITH PANAMANIAN FLAG SINKS IN AEGEAN; 1 TURKISH CREWMAN DIES
A Panama-flagged Turkish cargo ship en route from Turkey's Black Sea port of Bartin to the Moroccan port of Casablanca yesterday collided with a Greek tanker near the Greek island of Hydra in the Aegean and sank. During the accident, one Turkish crewman died, and five others are missing. Search and rescue operations are underway to find the missing sailors. /Turkiye/

PARLIAMENT PASSES PENSION REFORM
Parliament late on Wednesday passed a social security reform bill that was previously vetoed by President Ahmet Necdet Sezer. The law is part of a two-bill package that aims to reform the loss-making social security system and is one of the International Monetary Fund's prerequisites for continued cooperation. The first bill was vetoed by Sezer, who approved it after Parliament made the amendments he asked for. The president vetoed 15 articles of the second and more controversial bill, but this time around, Parliament's Planning and Budget Commission made no amendments to it. /Turkish Daily News/

SENER: "GOVT IS DETERMINED TO PASS MORTGAGE BILL"
Speaking to reporters yesterday, Deputy Prime Minister Abdullatif Sener said that the government was determined to pass the mortgage bill, adding that Parliament's busy agenda has so far precluded its debate. Saying that there was an appropriate basis for the bill in Turkey, Sener stressed that interest rate increases wouldn't have an adverse effect on the bill. In related news, Capital Markets Board (SPK) Chairman Dogan Cansizlar said that high housing credit interests wouldn't make the bill risky. /Sabah/

TELSIM'S TURNOVER TO VODAFONE COMPLETED
The turnover process of Telsim to Vodafone was officially completed yesterday with a ceremony held at the Ciragan Palace. Transportation Minister Binali Yildirim, Savings Deposit Insurance Fund (TMSF) Chairman Ahmet Erturk, and top Vodafone official Sir Julian Hornsmith were present at the ceremony. Speaking at the ceremony, Erturk stated that he appreciated Vodafone's faith in the Turkish markets, its interest in Telsim and the money it paid. For his part, Hornsmith said that Vodafone would invest $1.2 billion in Telsim over the next two years. /Milliyet/

TUZMEN: "IF EXCHANGE RATE RISES CONTINUE, THIS COULD BRING DOWN TRADE DEFICIT"
Speaking to reporters after his meeting with Oman's Economy Minister Ahmet Bin Abdalnabi Macki, State Minister Kursat Tuzmen commented on recent exchange rate increases, saying that if these continue, it could bring down the foreign trade deficit and positively affect the balance of payments. Saying that the overvalued lira was reverting to its normal levels, Tuzmen added that exchange rate would be balanced at 1.6 YTL. /Aksam/