ANKARA - Recent developments in Turkish economy did not raise alarm, World Bank Turkey Director Andrew Vorkink said on Monday.
Vorkink told A.A correspondent that economic developments affecting currency and interest rates in Turkish economy were foreign-oriented.
Those developments occurred as a result of expectations that U.S. Federal Reserve (FED) would increase interest rates, Vorkink said.
Vorkink emphasized that Turkish lira (TL) was expected to stand at approximately 1 million 600 thousand against the U.S. dollars this year.
Recalling that assistance that the World Bank was to extend to Turkey and initiatives Turkey was to launch within three years were set within the scope of Country Assistance Strategy (CAS), Vorkink said that Turkish government had met World Bank`s criteria within the framework of CAS.
Vorkink stated that the first year of CAS would be completed in June.
The World Bank would have extended a financial assistance of more than 1.5 billion U.S. dollars to Turkey this year within the scope of CAS, Vorkink pointed out.
Vorkink underlined that Turkey had made many structural reforms from public finance management to direct tax reform.
The last leg of Economic Reform Loan (ERL) had also been completed within that framework, Vorkink said.
Vorkink stated that the World Bank supported Turkish government`s plan to first restructure and then privatize Ziraat and Halk banks.
Pamukbank would priorly be merged with Halkbank, Vorkink said.
Vorkink stated that a consultancy organization would then determine how Ziraat and Halk banks would be privatized.
Then, those banks would be privatized in line with a certain road map, Vorkink pointed out.
Stating that social security system was very important for public finance, Vorkink defined two important parts of the system as retirement and health system.
Vorkink said that the World Bank and the Turkish government were discussing how the retirement system could be provided with a balanced finance within the following 20-30 years.
Turkey`s new retirement strategy would be unveiled in autumn, Vorkink stated.
Vorkink said that the retirement system would protect both the workers and the public finance balance.
The World Bank aimed at a more efficient and sustainable finance structure in Turkish health system, Vorkink pointed out.
Vorkink noted that the issue they were discussing at the moment was General Health Insurance.
They were calculating the cost of that system at the moment, Vorkink stated.
Vorkink said that after that work, Turkish government aimed to put into practice the General Health Insurance.
According to preliminary estimations, there was poverty in villages in Turkey, Vorkink noted.
Vorkink emphasized that however, poverty in Turkish cities was deeper.
Recalling that Stand-By agreement between Turkey and the International Monetary Fund (IMF) would end at the beginning of the following year, Vorkink said that Turkish government had signaled that it would put into practice a program with the IMF in the following year.
Vorkink stressed that Turkey`s annual finance need was approximately 140 billion U.S. dollars.
Recalling that Turkey provided approximately 5 billion U.S. dollars from the IMF and a certain amount of loan from the World Bank each year, Vorkink said that Turkey could provide very attracting finance opportunities thanks to credibility of its economic program instead of providing sources from the United States, IMF or World Bank.
Vorkink stated that the most important economic problem of Turkey was the high debt stock, adding that Turkish government had to achieve a primary surplus which could reduce that high debt stock.
(BRC-AÖ) 17.05.2004