State Minister Dervis In London

LONDON, Feb 5 (A.A) - State Minister Kemal Dervis said, while briefing the foreign finance and investment circles about the point reached in Turkish economy, said the care that was shown to all the elements of the program implemented together with the IMF, was awarded with the increase of confidence in Turkey.
Dervis addressed a meeting held by an international finance institution, Credit Suisse, in London. The meeting was closed to the press but the officials gave information to the journalists about the meeting afterwards.
Officials said Dervis pointed out that following the recent meeting held with the IMF, a medium term program could be started under more comfortable conditions, and briefed about the past of the program that was implemented.
Stressing that fixed exchange rate policy yielded in positive results in some countries, Dervis said it did not work in Turkey as there were some lacking elements. Dervis recalled that floating exchange rate was implemented in Turkey afterwards.
Dervis said exportation increased 14 percent and current account deficit increased three billion U.S. dollars plus. Dervis also emphasized the beneficial points of strict monetary policy.
Dervis, speaking to the investors, said the program was settled on a trivet, and that the first one was the structural reforms.
Pointing out that Turkish economy was also effected by the negativities caused by September 11 attacks, Dervis said structural reforms were accelerated, and monetary policies were tightened.
Dervis said as a result of this, stock exchange began to rise, interest rates began to fall, capacity utilization in industry increased, and real economy began to recover.
Dervis stressed that a real growth was expected in 2002.
Dervis said that Turkey was offered the IMF loan with better interest rate compared to foreign markets. ''The rate of state loans to Gross National Product was 89 percent in 2000. We'll try to bring it down to 81 percent in 2002. We have different scenerios for the period until 2006. The worst estimation is 70 percent and the best estimation if 56 percent,'' he said.
''Structural reforms formed the base for a modern market economy. Now, we can say that foreign capital can make investments in Turkey easily. Like in every country, there could be elections or some of the cabinet members might change in Turkey, but a good foundation has been laid and this will not change,'' Dervis asserted.
Responding to a question about the increase of value in Turkish Lira, Central Bank Governor Sureyya Serdengecti said they were not planning to interfere at the moment.
''All bills are passing from Parliament, although sometimes with difficulty. We are observing a very wide support from the people in public polls. People want us to prevent corruption and increase transparency and this is what we're working for,'' Dervis continued.
When asked if a state guarantee would be continued to be given to people's savings in the banks, Dervis said there was no changes on this point in the bill which is being prepared.
Dervis said that Turkey would use the 10 billion USD credit in the next three years and added that he believed Turkey would start financing itself in 2004.
DERVIS ''TURKEY HAS TO USHER SPRING WITH A STRONG ECONOMY''
After a meeting with finance circles in London, Dervis told reporters that they started observing the first indications of a growing economy and Turkey's first goal was to maintain economic growth, create employment and increase prosperity.
Dervis indicated that they decided on a three percent growth rate which is a ''very cautious'' figure and added that this could go up to 3.5 or 4 percent.
Dervis said that Turkey would attain the economic growth rate that it deserves starting in 2003.
''The conditions of 2001 was like the emergency unit of a hospital. We had to be quick and determined. Many bills had to be passed. From now on, we're moving on to a more normal period. It is very important to have a good coordination and good administration. We should refrain from short term and populist calculations in order to achieve a good result,'' Dervis said.
Dervis underlined the need for a healthy employment and said employing people at institutions which make losses was not a solution.
Responding to a question about the Argentinian economy, Dervis said that the economic program was implemented in Turkey with seriousness and this prevented Turkey from becoming like Argentina. ''International circles are saying that Turkey overcame the crisis unlike Argentina when they are comparing us,'' he commented.
Dervis thanked to the Turkish nation and the parliament for the concessions and the works they made.
When a journalist recalled the interpretations that IMF made its Turkey preference due to strategic reasons, and asked if he shared those views, Dervis said, ''this will not be a right evaluation. Credits were opened to Argentina several times, but the country in question could not reach the program targets. This is an important difference. Of course, Turkey's strategic importance, its successful harmonization with the allies increase the interest in Turkey, but those would not help us if we did not fulfil our commitments.''
Dervis said, ''also, the aid and the rescue words should be used carefully. We should not forget that those are not donations. It is a credit that will be paid with their interests. It will not be right to accept them as donation.''
When asked what would happen if another government comes to ruling, Dervis said the country would be administered with the same principles in case another government comes to ruling.
Responding a question, Dervis said President Ahmet Necdet Sezer only brought three articles in Banking Reform Package to the Constitutional court, noting that the decision of the court would not change the core of the law.