ANKARA - International Monetary Fund (IMF) First Deputy Managing Director Anne Krueger has said that the government had stated its commitment to a public sector primary surplus target of 6.5 percent of GNP in 2003.
Krueger made a statement on her contacts in Ankara through IMF Representation in Turkey on Thursday.
In her statement, Krueger said that she had had fruitful meetings with Prime Minister Abdullah Gul and members of his government. Noting that the government had reaffirmed its commitment to disinflation, debt reduction, and sustained growth and its commitment to a public sector primary surplus target of 6.5 percent of GNP in 2003, Krueger said, ''the government's targets for 2003 of 5 percent growth and 20 percent inflation remain feasible but require strict adherence to the program.''
''Prime Minister Gul, his team, and I agree that the task for the government now is to translate its good intentions into actions,'' she added.
In her statement, Krueger defined the recent announcements of budgetary measures and the 2003 privatization plan as helpful initial steps.
''Swift formulation and implementation of strong economic policies will allow the Turkish economy to realize its vast growth potential, and lay the basis for raising the living standards of all Turkish citizens, including the economically disadvantaged,'' she said.
''As soon as the government has clarified its concrete policy plans further, we stand ready to send an IMF mission to Ankara to discuss the 2003 budget and other issues key to the program,'' Krueger added.
Meanwhile, the statement gave information on Krueger's contacts in Ankara.
Recalling that Krueger had met Prime Minister Abdullah Gul, Deputy Prime Minister Abdullatif Sener, Finance Minister Kemal Unakitan and senior economic officials, the statement said that Krueger's visit had taken place at the invitation of State Minister Ali Babacan and that their discussions had focused on the status of Turkey's IMF-supported economic program and the actions the government needed to take to ensure a positive momentum in economic recovery and financial stabilization.
BABACAN: OUR GOVERNMENT'S DETERMINATION IN INCREASING MOMENTUM OF THE ECONOMY'S CURRENT RECOVERY PROCESS HAS BEEN AFFIRMED TO MS. KRUEGER
State Minister Ali Babacan has said that the government's determination in increasing the momentum of the economy's current recovery process had been affirmed to International Monetary Fund (IMF) First Deputy Managing Director Anne Krueger.
Babacan said, ''technical works on the draft letter of intent have reached the final stage.''
Releasing a statement on Thursday, State Minister Babacan evaluated Krueger's contacts in Ankara.
In his statement, Babacan recalled that Krueger who had come to Turkey on Wednesday held meetings in Istanbul with business and banking circles and in Ankara with government officials and senior economic officials.
Noting that under her contacts in Ankara, exchange of opinion had been made with Krueger about 2003 year budget preparations and expectations about macro targets, Babacan said, ''the government's determination in increasing the momentum of the economy's current recovery process has been affirmed to Ms. Krueger. To this end, Ms. Krueger has been told that disciplined fiscal and monetary policies would continue.''
''Within this framework, it has been stressed that our government attributed great importance to achievement of basic macro targets, including 6.5 percent primary surplus and 20 percent inflation in 2003, and reaching 5 percent growth target and rapid transition into medium term sustainable growth environment, and that so necessary measures would be taken and put into practice immediately,'' he said.
Noting that Krueger had been told that structural reform works in scope of Urgent Acton Plan that the government had earlier announced would be accelerated, the statement said that to this end, a comprehensive privatization program had been announced for 2003.
This privatization program targeted a more effective and productive market economy where the state's role in the economy would be reduced while private sector's participation would be increased, the statement said and added, ''similarly, it has been stressed that the structural reform program about the public sector's activities aimed to grant the public sector a more rapidly and effectively functioning structure.'' Babacan said in his statement that technical works on draft letter of intent had reached final stage.
''In parallel to the 2003 year budget preparations, policies that are implemented under the economic program and measures related to these are being reflected to the draft letter of intent that we are preparing under the fourth review of stand-by deal with the IMF. Technical works on the draft letter of intent have reached final stage,'' Babacan added.
State Minister Ali Babacan hosted a dinner in honor of Krueger in Ankara on Thursday.
Krueger answered questions of reporters after the dinner.
When asked what kind of things in her statement had been implied with 'concrete steps' that the government should take, Kreuger said that they had mentioned macro-economic and structural policies written in the economic program and that they had not made any political implication.
IMF's Representative in Ankara Odd Per Brekk, IMF Executive Director Wiilly Kiekens and high-level economic officials were also in attendance at the dinner.