DAVOS (AA) - ''Turkey will meet the EU's criteria for budget deficit in 2006 and for debt stock in 2007,'' said Turkish State Minister Ali Babacan.
     Babacan held a news conference regarding his meetings in Davos on Thursday.
     ''I have attended sessions about Europe and we have discussed the vision of Europe for the future. We have taken up monetary and budget issues which monetary union member countries should comply with, besides European Constitution which has to be approved by all members before October 2006,'' said Babacan.
     Babacan noted, ''several European countries asked for tolerance as they cannot comply with rules about budget. Turkey will comply with these rules. We will decrease budget deficit ratio under 3 percent of gross national product in 2006, and drop debt stock under 60 percent in 2007.''
     ''In another session yesterday, we have discussed problems in the world. Participants pointed out poverty as the most important problem in the world, followed by taking benefit from advantages of globalization equitably, climate change and Middle East problem,'' said Babacan.
     Babacan said that he will meet representatives of real and finance sectors today and he will deliver a speech in a working dinner this evening.
     Babacan told reporters that he would also attend a session in which the decision-making mechanisms in the EU's enlargement process would be discussed.
     ''On Friday, a special meeting will take place under the chairmanship of Turkish Prime Minister Recep Tayyip Erdogan. We will explain Turkey's plans and targets during the meeting. Also, PM Erdogan and I, will hold a series of bilateral talks,'' he said.
    
     -INFLATION TARGET-
    
     Upon a question, Babacan said, ''our target of inflation rate is 8 percent for 2005.''
     Replying to a question about inflow of direct foreign capital, Babacan said, ''we expect an inflow of direct foreign capital at the range of 15 billion U.S. dollars in the next three years.''
     Babacan also told reporters that Prime Minister Erdogan was scheduled to meet International Monetary Fund (IMF) First Deputy Managing Director Anne Krueger on Friday, adding, ''we will send our letter of intent to the IMF soon after completing several legal arrangements.''
     (GC-UK-ULG)
2005-01-27