NEW YORK - Prime Minister Recep Tayyip Erdogan said on Monday that Turkey needed wide-scale foreign capital investments.
Erdogan met with international finance circles at a breakfast in New York, the United States.
Prime Minister Erdogan expressed belief that strong political will of the government to continue to implement economic reform program should be perceived as the most valid guarantee by international finance circles.
Erdogan asked finance circles to make the best evaluation in line with their interests.
Thanking everybody for his/her interest and support to 30-year state notes issued by Turkey in previous days, Erdogan said that long term and low cost of those state notes were a result of the atmosphere of confidence ensured after November 3 elections.
Erdogan stated that Turkey and the United States, two members of democratic and free world, shared a rooted and important partnership.
Importance attached to democracy, freedom, human rights and rule of law in a period when the world was witnessing rapid changes continued to be one of the main goals uniting the two countries, Erdogan emphasized.
Erdogan said, ''these common goals we share have enabled our countries to have multi-lateral and multi-dimensional relations. It is obvious that we should further upgrade our economic relations with our strategic partner United States to the level of our political and military cooperation. We wish to take positive steps and make cooperation in the Balkans, Caucasus and Central Asia as well as our cooperation in Iraq and Afghanistan.''
''Turkey has taken significant steps to liberalize its economy, trade regime and capital market. Our country is determined to continue its economic reform and stability program, the positive results of which started to be seen in 2003. Economic reform process gives priority to private sector and free market actors and is directed by policies depending on privatization and integration with world economy. We appreciate support of the United States,'' Erdogan noted.
Erdogan stated that Turkey put into practice an International Monetary Fund (IMF) backed economic program to strengthen its economy after November 2000 and February 2001 crises.
Justice and Development Party (AK Party) government had showed its commitment to the economic reform program, Erdogan said.
Erdogan noted that Turkey started to get outcome of the program in 2003.
The government was aware that economic program should be continued with the same determination despite the achievements recorded so far, Erdogan said.
Erdogan went on saying, ''our legal reforms aimed to lay the necessary groundwork for efficiency and competitiveness of the real economy. Turkey has made changes in banking, social security and agriculture in order to establish a competitive market economy within the scope of its economic program having three main steps, including floating exchange rate regime, firm finance policy and ambitious structural reform. Central Bank has been made independent and transparency has been provided in financial markets. Turkey has adopted an action plan in order to create an appropriate environment for foreign investments and made necessary legal changes.''
''We can see success of our economic program by the figures. Our country was the second biggest growing economy in 2002 with 7.8 percent growth rate following China. Turkey achieved 5 percent growth rate at the end of 2003 and I have full belief that we will keep to 5 percent growth rate target foreseen for 2004. Turkey recorded more than 6.5 percent of primary surplus in 2003 and its budget for 2004 foresees a primary surplus of 6.5 percent in 2004. Turkey recorded significant progress in fight against inflation in 2003 and inflation rate decreased below 20 percent at the end of this year. Exports from Turkey increased by 30 percent to 48 billion U.S. dollars. We expect rate of public debts to gross national product (GNP) to be around 66 percent by the end of 2004,'' Erdogan said.
Erdogan said that another important development was the success gained after state notes were issued in foreign markets at the beginning of January.
The interest of the 30-year state notes worth of 1.5 billion U.S. dollars was the lowest among state notes issued in international capital markets so far, Erdogan noted.
Erdogan said that cost of the mentioned state notes was lower than cost of state notes of other countries.
Prime Minister Erdogan expressed belief that this was a result of betterment of Turkish economy and positive expectations of the investors.
Erdogan said, ''Turkey needs foreign capital investments in large scale. Total of American investments which have been made to Turkey in the last 23 years is nearly only four billion dollars. Investment milieu in Turkey is being made more suitable with the new regulations adopted to encourage foreign investments. We are expecting U.S. investments to Turkey to increase with 'Direct Foreign Investments Law' which came into effect on June 17, 2003. While 19 separate procedures were necessary in the past to establish a firm, this issue today can be fulfilled only with three procedures and in one day with this law.''
Erdogan stressed that it was necessary to diversify the existing economic and commercial cooperation with the United States in sectors and to put programs encouraging cooperation especially among SMSEs into practice rapidly.
Noting that the successes of Turkish firms in Afghanistan and the Middle East were reflecting what Turkey could do in neighbor Iraq, Erdogan said that the general advantages of Turkish firms in Iraq were closeness to Iraq, firms' knowing the region and their making successful business in every condition and the existing machine parking lots in Iraq in construction sector.
Erdogan said that it was pleasing that Turkish companies, as main constructors, could participate in the tenders to be opened within 18.6 billion dollars of fund reserved by congress for the reconstruction of Iraq.
Erdogan said that they were aware of the importance of U.S. political support in the current step of Baku-Tbilisi-Ceyhan (BTC) Oil Pipeline which would transfer energy sources of Caspian region to Turkey and the west.
Erdogan said that when it was taken into consideration that BTC Oil Pipeline would be completed in the end of year and Turkey had signed natural gas agreement with Greece and Iraqi oil would be transferred to the world via Turkey, Turkey would be on the position of one of the leading provider and distributor of energy.
Erdogan said that tourism sector had also an important place in development of economic and commercial relations between Turkey and the United States, adding that investment process would speed up with the increasing contacts in tourism sector.
Erdogan said that he wished the meetings between official and private institutions and businessmen of both countries to be evaluated to provide facilities for taking further concrete steps on those issues.
Noting that meeting the finance requirement on all of those issues had a priority, Erdogan stressed that Turkey would continue to take necessary steps to be a more reliable actor in international finance market each day.
Chairmen and representatives of investment banks ABN Amro Inc., Citigroup, CSFB, Deutsche Bank, Goldman Sachs Co. JPMorgan, Lehman Brothers International, Merril Lynch& Co Inc. Morgan Stanley, UBS and investment funds Citigroup Investments, Fidelity Investments, Goldman Sachs Asset Management, Prudential Investment Management and ratings agency Moody's Investors Service attended the meeting.
(BRC-GC-AÖ) 26.01.2004