Babacan: Foreign Capital Inflow In Turkish Banking Sector Is Necessary

ANKARA (AA) - Turkish State Minister Ali Babacan has said, ''fresh foreign capital inflow in Turkish banking sector is necessary.''
     Speaking to Turkish private NTV and CNBC-e channels on Wednesday, Babacan said, ''a big banking sector is necessary for growth of Turkish economy. Thus, foreign capital is required.''
     Regarding stand-by deal, Babacan said, ''International Monetary Fund (IMF) Executive Directors Board will discuss stand-by deal with Turkey today. A new period will officially start with approval of stand-by.''
     ''There is no problem in this issue. Turkey's debt to IMF, which is more than 19 billion USD now, will be under 10 billion USD in the end of 3-year stand-by deal. The remaining debt after stand-by deal will be paid from Turkey's own sources,'' he added.
     Babacan said, ''we envisage that a new arrangement with IMF after May 2008 will not be necessary. However, we will take a certain decision on that date.''
    
     -REFERENDUM IN FRANCE-
    
     Regarding the effects of referendum on Turkey which will be held in France, Babacan said, ''if we protect our determination about the EU issue and if social support and political will continue strongly, there is nothing to worry.''
     ''Determination of Turkish government about EU issue continues. The important thing is to be locked on long-term target which is to meet criteria for full membership and provide Turkey's transformation,'' noted Babacan.
     He said, ''the referendum which will be important for Turkey will be held nearly 10 years later. This referendum will be for Turkey's full membership to the EU.''
    
     -PRIVATIZATION-
    
     Referring to privatization, Babacan said, ''Turkish Privatization Administration exerts great efforts in this issue.''
     ''Turkish government is determined for privatization. Sales of institutions like Tupras, Telekom and Erdemir will be fulfilled within this year,'' noted Babacan.
     (GC-A֩
2005-05-11