Babacan Says Draft Supplementary Letter Of Intent In His Bag

MORELIA - State Minister Ali Babacan said on Monday that the draft letter of intent to be sent to International Monetary Fund (IMF) was in his bag.
Babacan, who is in Morelia, Mexico to attend G-20 meeting, told A.A correspondent that some steps should be taken to send the supplementary letter of intent to IMF.
There was not any delay in their program and everything was normal, Babacan said.
Babacan noted that he thought that IMF Executive Board would meet in November and make a decision on release of loan to Turkey.
''We don't put into practice some recipes just because some of their experts give those recipes. We are telling this in every occasion and opportunity. We say that we will fulfil an initiative if it is for the benefit of Turkey, otherwise we won't do it. IMF has also seen that this approach have yielded positive result and IMF's confidence in us has increased. When we say something, they are saying okay,'' Babacan said.
Babacan stated that the year 2004 would be the year when the new atmosphere created in Turkey would be strengthened.
''Decrease in inflation is related with how fast inflationist expectations are reduced. The faster these expectations are reduced, the more successful we will be in fight against inflation. The most important factor in reducing inflationist expectation will be the determined stance. The more determined we are to maintain firm financial and monetary policy, the faster the inflation will decrease,'' Babacan said.
Babacan stressed that inflation was the biggest enemy of economy and it should be taken under control.
Stating that Turkey had had difficult days in the past and had been very affected by crises, Babacan said that crises especially hit citizens with fixed income.
Babacan pointed out that the government wanted to put into practice initiatives aiming at citizens with low income as soon as possible.
Despite fight against inflation and firm financial policies, the government increased salaries, wages and pension, Babacan said.
Babacan noted, ''we have to undergo these difficult days for a few years to transfer a more prosperous Turkey for our children and grandchildren.''
''We told citizens before the elections not to expect an improvement in the economic situation immediately after the elections. Prime Minister also tells the same thing. As of the end of the third year, citizens will be more comfortable. We must continue implementing the strict fiscal policy as there is a heavy debt burden. We want to see Turkey which will overcome its economic problems and which will join EU in the years 2010-2020,'' Babacan said.
Babacan asserted that citizens understood the policies implemented by the government, adding that the interest of the people in them further increased. Babacan said that the government had a very frank, and honest discourse, adding that the government would not increase the price of electricity and natural gas if the budget targets were to be reached in 2004.
Babacan stated that they gave priority to saving measures for the year 2004.
(BRC-ÖŞ-AÖ) 27.10.2003