TRABZON - One of the most important economic problems of Turkey is the primary deficit financing, head of Turkey's largest business organization said on Saturday.
"If we can not finance the deficit, then Turkey will face a crisis," Rifat Hisarciklioglu, chairman of the Union of Chambers & Commodity Exchanges in Turkey, told a conference on Turkish economy at the Black Sea Technical University in the northern province of Trabzon.
Turkey's current account deficit hit 34.8 billion USD in the first eight months of 2008, Central Bank announced last week. It was 23.7 billion in the first eight months of 2007.
Hisarciklioglu said Turkish real sector's external debts were climbing and added that it reached 191 billion USD in the first eight months of this year.
He said Turkey was caught by the global turmoil amid slowed-down growth and increasing external deficit and external borrowing. However, Hisarciklioglu said, Turkey was experienced against economic crisis unlike United States and Europe since Turkish people saw a similar economic meltdown in 2001.
"However, we have the propensity of overspending just like American people," he said.
Hisarciklioglu also talked about a possible stand-by deal with the International Monetary Fund (IMF) and said everyone in Turkey was against IMF but the country was left weak at the knees against IMF.
"This is unacceptable. We have to save the country from borrowing or taking orders. This is what we aim," he stated.
(TÇ-GC)
(ECO)