Dervis: Turkey Recorded An Important Step In Overcoming Previous Crises

ANKARA, Jan 24 (A.A) - State Minister Kemal Dervis said on Thursday that Turkey recorded an important step in overcoming previous crises.
Responding to the question with notice submitted by Zeki Celik, the Felicity Party (SP) Ankara Parliamentarian, Dervis said Turkey recorded an important step in overcoming previous crises, adding that the risk of entering another crisis was overcome with the economic program that is under implementation.
Dervis said a new economic program has been put into practice following November 2000 and February 2001 crises, and recalled that they were able to deal with the core of the problems as of March 2001.
Stressing that the economic program had been announced in April, and that foreign finance was provided in May, Dervis said, ''important steps have been taken with the effect of the legal infrastructure which was set up with the disciplined finance and monetary policies and the structural reforms, and with the intense working of the Parliament.''
Dervis said first signals of overcoming economic difficulties, began to come early in June, but there was a delay in confidence climate because of some political disputes.
Pointing out that signals of improvement began to be seen again in economy starting as of end of July, Dervis said this time negative effects of September 11 terrorist attacks were reflected in Turkey.
Dervis said, ''Turkey, in the period of September 11 attacks, both put into implementation the necessary monetary policies, and also did not make concession from its determination about disciplined monetary policies and structural reforms. Continuation of the determination for the implementation of economic program for the coming period increased confidence in Turkey both inside and outside the country. As a result of this, Turkey was able to provide very large amounts of additional resource from the international finance institutions like International Monetary Fund (IMF) and financial markets.''
Dervis said floating exchange rate regime which is under implementation provided flexibility against shocks that may come from outside and a competitive power in respect to exportation, adding that, ''structural reforms that are under implementation with determination create facilities for us to look at future with confidence. Important amounts of additional finance resources obtained from the foreign financial institutions like the IMF, are the results of the determination in implementing the economic program.''
''Although many world economies face the risk of serious economic stagnancy with the negative effects of September 11 terrorist attacks, Turkey got prepared to enter into 'sustainable growth' process again in the year 2002,'' Dervis said.
Dervis said, ''Turkey from now on recorded an important step in overcoming past crises. As a result of the program that is under implementation, it will be able to overcome the risk of entering another crisis. The consequences of this will be sustainable growth and reaching prosperity.''
DERVIS:''INTERNATIONAL FINANCIAL ORGANIZATIONS BELIEVE IN TURKEY'S FINANCIAL REFORM PROCESS, THEREFORE THEY CONTINUE SUPPORT''
State Minister Kemal Dervis has said that financial discipline was the most important element that makes the Turkish economy gain respect both in Turkey and in other countries.
He also said that international financial support to Turkey existed because international financial institutions believe that Turkey would continue to implement its economic reforms.
In a written statement he made on Thursday, Dervis said that determined financial policies would indicate a fast recovery in public finance.
He pointed out that significant progress was made in maintaining stability in domestic markets last year through a financial discipline and this increased Turkey's credibility.
Dervis said that Turkey was still trying to recover from the effects of two heavy financial crises.
''We're going through a critical period during which we can speed up our economic program through the contributions of international organizations,'' Dervis said.
Following the economic crises which hit Turkey on Nov. 2000 and Feb.2001, the Turkish economy had an important test during the remaining of 2001.
He indicated that the Turkish economy shrank seriously last year and Sept. 11 attacks in the United States deepened the crisis in Turkey, like it brought an additional burden to economies all around the world.
Despite all these negative circumstances, Dervis said that the structural reforms which started to be implemented last year helped Turkey to make significant progress to overcome the crisis and people started trusting the Turkish economy due to the financial discipline.
''We can only overcome this critical period through implementing economy policies and determination,'' he said.
Dervis underlined that the new regulations aim to help people with low income and bring a balance in income distribution in Turkey.
''A healthy economic growth is the precondition for increasing prosperity. Temporary and easy solutions are the biggest obstacles in front of a healthy growth process. All sectors of the society should take these realities into consideration,'' he concluded.