ERDOGAN TO TRAVEL TO GREECE TODAY
Prime Minister Recep Tayyip Erdogan is set to travel to Greece late this afternoon to pay an official visit. During his three-day stay, Erdogan is expected to meet with his Greek counterpart Costas Karamanlis as well as President Konstantin Stephanopoulos, Parliament Speaker Anna Psaruda and Athens Mayor Dora Bakoyanni. On Saturday, the last day of his visit, Erdogan is to visit Gumulcine, a town in western Thrace, where he will meet with representatives of the Turkish minority in that region, which adjoins Turkey. /Turkiye/

KRUEGER: “TO SUSTAIN ITS HIGH DEBT STOCK, TURKEY MUST BOOST THE PRIMARY SURPLUS”
Speaking at the Turkish Economy Congress in Izmir yesterday, International Monetary Fund Deputy Managing Director Anne Krueger praised the government’s efforts on inflation, the primary surplus and fiscal reforms. Krueger cautioned, however, that Ankara should increase its primary surplus in order to sustain its high debt stock in the medium term. “Turkey’s primary surplus target for the last year was 6.5%, but it achieved 6.2%,” said Krueger, adding that she didn’t see the high primary surplus damaging growth. “A high primary surplus will boost growth and create new jobs,” she added. Touching on inflation, Krueger stated that resolve would be needed to bring inflation down further, adding that a single-digit rate was now achievable. Krueger predicted that Turkey would benefit from the completion of its economic reforms. Also speaking at the congress, President Ahmet Necdet Sezer hailed recent economic indicators as “positive,” adding however that some structural problems remained and that sustainable growth was very important. “As unemployment is still too high, we need to reduce it,” urged Sezer. /Sabah/

GUL TO ATTEND EURO-MED FOREIGN MINISTERS’ MEETING
Foreign Minister Abdullah Gul yesterday left for Dublin, Ireland to attend the Mid-Term Ministerial Meeting of Euro-Mediterranean Foreign Ministers. Speaking to reporters before leaving, Gul said that the meeting had been held since 1995 and that this year 25 European Union member states were participating. “We expect to discuss developments in the Middle East as well as regional issues,” he added. /Cumhuriyet/

DENKTAS: “ANKARA SHOULD RECOGNIZE GREEK CYPRUS AS WELL”
Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas yesterday was awarded an honorary doctorate by Gaziantep University. Speaking at the ceremony in his honor, Denktas said, “What joined the European Union [on May 1] was the Greek Cypriot side, not Cyprus. This membership won’t affect the Northern Turkish side.” Commenting on the issue of Ankara’s possible recognition of Greek Cyprus, the TRNC leader said that besides the TRNC, it would also be good for Turkey to recognize Greek Cyprus. /Star/

TRNC’S TALAT: “POWELL HAS PLEDGED TO HELP END THE EMBARGO”
Speaking to reporters in the wake of his Tuesday meeting with US Secretary of State Colin Powell, Turkish Republic of Northern Cyprus (TRNC) Prime Minister Mehmet Ali Talat, who is currently paying an official visit to the US, said that Powell had vowed to work to end the TRNC’s isolation. Talat expressed his satisfaction with the positive stances of both Powell and UN Secretary-General Kofi Annan, whom he also spoke with on Tuesday. In related news, US State Department Cyprus Envoy Thomas Weston said that the US administration’s forthcoming steps on the Cyprus issue would encourage the Turkish side. /Turkiye/

AGAR LENDS SUPPORT TO GOVERNMENT ON YOK BILL
In a press conference yesterday, minor opposition True Path Party (DYP) leader Mehmet Agar threw his party’s support behind the government’s new Higher Board of Education (YOK) bill. Stressing that the DYP was opposed to any discrimination, Agar said the religious-oriented imam hatips were also schools of the Turkish Republic and so should not be treated unjustly. Commenting on recent allegations of torture of Iraqi prisoners by coalition forces, Agar urged the authorities to punish all those guilty of that crime against humanity. /Turkiye/

BAYKAL CRITICIZES AKP’S ECONOMIC POLICIES, ERDOGAN RESPONDS
Addressing the Turkish Economy Congress yesterday, main opposition Republican People’s Party (CHP) leader Deniz Baykal criticized the ruling Justice and Development Party’s (AKP) economic policies, charging that a swelling current accounts deficit could lead to another national economic crisis. Baykal also warned that interest rates remained too high, but urged the continuation next year of Ankara’s International Monetary Fund-supported economic program. “We need to pay back $25.2 billion to the IMF between 2004 and 2007,” said Baykal. He added that 6.5% primary surplus target was too high for Turkey and needed to be reduced. For his part, Prime Minister Recep Tayyip Erdogan responded that the government could reduce this target after discussing the issue with IMF officials, adding that Turkey needed to pay back $20 billion to the IMF, not $25 billion. /Aksam/

CB HEAD: “TURKEY SHOULD MAINTAIN TIES WITH THE IMF AFTER COMPLETION OF ITS STANDBY PROGRAM”
Appearing on television yesterday, Central Bank Governor Sureyya Serdengecti urged continued ties in some fashion with the International Monetary Fund after next year’s completion of Ankara’s standby agreement. “Since Turkey’s debt stock is too high, I believe that we need to continue our path with the IMF,” said Serdengecti. “There’s no need to worry about the current accounts deficit if we maintain sound fiscal policies.” /Aksam/

NEW IMF MANAGING DIRECTOR PRAISES TURKEY’S ECONOMIC INDICATORS
Rodrigo Rato, the International Monetary Fund’s new managing director, yesterday praised Turkey’s recent economic indicators. Speaking at a press conference, Rato hailed positive developments in the Turkish economy. In related news, Organization for Economic Cooperation and Development (OECD) Secretary-General Donald Johnston said yesterday that Turkey was at an important turning point. “The Turkish government is on the right track,” said Johnston. He also praised Ankara’s reforms. /Milliyet/