WASHINGTON - The move of the U.S. Federal Reserve Bank (FED) to raise interest rates would not change basis of Turkey's economic program and its debt dynamics, Turkish State Minister Ali Babacan said on Monday.
Babacan, who is in the United States to attend International Monetary Fund (IMF)-World Bank Spring Meetings, told a press conference that he discussed possible effects of rise in interest rates on Turkey in his meetings.
Turkish State Minister Babacan noted that they generally thought that the rise in interest rates would have limited economic effect.
Babacan stated that there might be changes in foreign borrowing interests but the rise in interest rates would not change basis of Turkey's economic program and its debt dynamics.
Noting that Turkey was not a target country in the Greater Middle East Project of the United States, Babacan said that Turkey was a working partner of the United States and change in the region was unavoidable.
Babacan stated that changes could not be made by force or sanctions and said that countries should back those changes.
Turkey's role in the region was indisputable, Babacan pointed out.
Babacan said that Turkey was a good example for other countries with its Muslim population and democracy.
Turkish State Minister Babacan said that IMF Acting Managing Director Anne Krueger hosted a special meal for Turkey which was also attended by Turkish Finance Minister Kemal Unakitan, IMF European Department I Director Michael Deppler and IMF Turkey Desk Chief Reza Moghadam.
Babacan noted that he would proceed to New York and deliver a speech at the American-Turkish Community later in the day, adding that he would return to Turkey on Tuesday.
Babacan went to the United States on Tuesday. He met with foreign investment circles on Thursday, and briefed the investors about the economic reforms and other financial developments in Turkey, and replied to the questions of the investors particularly about the economic perspective of Turkey after 2004.
Turkish State Minister Babacan participated in a breakfast hosted by the Turkish-American Business Forum in New York on Thursday and later attended a conference entitled ''the Fifth Summit of Economic Policies - Banking Sector and Monetary Issues'' organized by Economists' Forum.
Babacan met with U.S. Treasury Secretary John Snow, and IMF First Deputy Managing Director Anne Krueger on Friday. Babacan also met with representatives of financial organizations in New York.
Turkish State Minister Babacan met with U.S. State Department Undersecretary for Economic, Business and Agricultural Affairs Alan Larson.
Babacan attended on Sunday International Monetary Fund (IMF)-World Bank Spring Meetings in Washington, the United States on Sunday. Babacan, who joined the meetings of committees, later met with officials of the Institute of International Finance (IIF).
(BRC-AY) 26.04.2004