Brekk: Turkey Does Not Use Its Real Potential

ANKARA - Odd Per Brekk, the representative of the International Monetary Fund (IMF) in Turkey, said on Monday that Turkey does not use fully its potential, adding that the Turkish government should initiate a medium-term reform program to activate its economic potential in full.
In an interview with the A.A correspondent, Brekk, whose term in office in Turkey has just ended, said that Turkey does not use its real potential stemming from its manpower, its dynamic private sector and geographical position.
Brekk recalled that the last year's important non-interest surplus had contributed to a decrease in debt rate of the government. He said that a more transparent public administration and a successful monetary policy enacted by an independent Central Bank had secured the confidence in the market.
Pointing out that they did not expect any problem in repayment of debts as long as Turkey maintained its sound macroeconomic policies and economic reforms, Brekk said that the government's new medium-term economic program should guide the markets; help efforts to reduce interest rates and to remove concerns over the government's debt repayment capabilities.
He described the new medium-term economic program of the government ''as quite encouraging''.
Turkey should increase its production, reduce its public debt to a sustainable level; continue making reforms in public and banking sectors; and realize other structural reforms in order to use its real potential, Brekk stressed.
Referring to Turkey's European Union (EU) membership process, Brekk said that opening of accession talks between Turkey and the EU would affect decisions of those who want to make direct or indirect investments in Turkey.
Recalling that the latest letter of intent about the eighth review was sent to the IMF after being signed by Turkish State Minister Ali Babacan and Turkish Central Bank Governor Sureyya Serdengecti, Brekk said that the IMF Board was expected to approve the letter at its scheduled meeting to be held end-July.
Recalling that the stand-by deal between Turkey and the IMF would come to an end in February of 2005, Brekk added that government would then determine the new pattern of relations with the IMF.
Brekk will start acting as chief of IMF Indonesia Desk.
Meanwhile, Hugh Bredenkamp of Britain will be appointed as new IMF representative in Turkey.
(UK-ULG) 19.07.2004