ANKARA, Jan 27 (A.A) - State Minister Kemal Dervis has said that the government was continuing to take the necessary measures to revive economic activity in Turkey. Through the ongoing changes, Dervis said that the banking sector would become stronger and it would support the real sector.
Responding to Felicity Party (SP) deputy Zeki Celik's written question on Friday, Dervis said that the government was working to bring a solution to the problems of private and banking sectors.
To solve the problem of unreturned credits that are in the actives of a bank, Dervis said a Private Asset Management Company would be set up and this company would buy these credits and therefore creating liquidity for the banking system.
Dervis also indicated that the government decreased Value Added Tax (KDV) rates to 18 percent in certain products as an effort to revive economy.
''We have to implement the Transition Program to a Powerful Economy to the very end in order to recover our economy,'' Dervis said.
The state minister said that one of the biggest problems of the Turkish economy was the increase in public debt stock. ''This increase has to be stopped. The government is reviewing measures that would increase state income and save from expanses. These efforts should not be interpreted as a tax raise. What is important is to minimize tax evasion,'' he said.
Dervis said that the ongoing program aims to make the economy grow, increase investments and employment and to bring prosperity to all people.
''In 2001, we started support for our farmers and the necessary funds were included in the budget. It has become our prime goal to help our farmers through offering them direct support. Agricultural support mechanisms are not being lifted as it's believed by people. Agriculture will be supported by transfering resources to the products which really need support. With the alternative product project, we're aiming to make farmers to start growing produce to which there is demand rather than growing produce which we already have too much of.''
Dervis said that the poorest sectors of the society would be protected while implementing a strick finance policy and real expenses would be increased in social life.
He said that Turkey already obtained a 500 million U.S. dollar credit from the World Bank as part of the Project to Decrease Social Risk and that the government already started supporting people with low income with this resource.