DAVOS - State Minister Ali Babacan has said, ''we will invite International Monetary Fund (IMF) delegation within next seven or ten days and talks with Mr. Kahkonen will start.''
Replying the A.A correspondent's questions on Saturday, Babacan said that their contacts with the IMF delegation continued.
Regarding preparation of letter of intent, Babacan said, ''as we are going to prepare the letter of intent for the first time, we asked all ministries to prepare their parts in the letter of intent to make them believe in what they would do. So process of preparation lasts long. However, preparation is about to finish. We will invite the IMF within seven or ten days, it won't be so long.''
Noting that participation of IMF in some programs in Turkey was not a normal attitude, Babacan said, ''however, countries which do not borrow money from other sources are unfortunately obliged to borrow money from IMF. As government, our aim is to repay our debts to IMF as soon as possible and make Turkey a country that borrows money through normal ways without IMF. And we target to absolutely do this as soon as possible''
When asked they would insist on 6.5 percent public sector primary budget target even if interest rates decreased, Babacan said, ''the 6.5 percent primary budget target couldn't be achieved in 2002. It was between 4.5 and 5 percent. If it is below 6.5 percent in 2003, this would have lasting negative effects on borrowing stock. Besides, this effect could not be removed in 4-5 years. So we maintain our 6.5 percent target to decrease borrowing stock permanently.''
When asked when Turkey would adopt Euro as its currency, Babacan said, ''at the moment, it seems early to do this. There are at least three or four years to fulfil technical conditions of adoption of Euro as currency.''
Babacan said government's EU policy was to be an EU member that used Euro banknotes.
Stressing that hopes about solution of Iraq crisis through peaceful ways were increased after the government's latest initiatives, Babacan said that they had taken all necessary measures to continue implementing the economic program effectively even against the worst scenario.
When asked whether or not social policies would negatively affect economic policy implemented together with IMF, Babacan said that focusing on social expenditures was quite natural.
Regarding meetings in Davos, Switzerland, Babacan said that those meetings were important about drawing of foreign capital and that they would meet with managers of leading companies in the world and invite them to invest in Turkey.