ANKARA - Prime Minister Abdullah Gul said on Monday that the government would continue the financial discipline and ensure harmony between policy of revenues and inflation target in order to reach the earlier set inflation target.
Gul told a press conference that one of the most important target of their initiatives was to permanently reduce the inflation rate.
The inflation rate for 2003 had earlier been set as 20 percent by the Central Bank, Gul said.
Gul noted that the Central Bank would freely determine and efficiently use the monetary policy means without any political pressure in order to achieve the inflation target as a requirement of its independent status.
The budget of 2003 and the foreseen measures were important steps in completion of the fourth review with the International Monetary Fund (IMF), Gul stated.
Gul said, ''but, it is obvious that our government has made our economy more resistant to external shocks when compared with the past as a requirement of the structure of the economic program. We have to do all these to put our economy on the right track. Because, we should be determined to make Turkish economy robust in order to compete and have happier days in the future.''
''We have put forth this determination as you see in our initiatives. The parliament will pass the budget quickly. And, I am sure that the public and markets will appreciate this open and transparent stance of our government,'' added Gul.
GUL: ''I TALKED TO THE U.S. STATE SECRETARY POWELL. THEY ALSO EVALUATE UNDER MUTUAL UNDERSTANDING''
Gul said that he spoke to the U.S. Secretary of State Colin Powell by phone, stating that they also evaluate the issue under mutual understanding. Gul said there was nothing to say about the decision taken by the Parliament, stating that everything took place in a democratic process.
When asked whether or not reviews completed with the International Monetary Fund (IMF), Gul said, ''this has been a very important step. The important thing here is the 6.5 percent primary surplus.''
Responding another question, Gul said the motion and the economic issues should be kept separate, stating that, ''IMF is an independent international institution. Parliament has taken the decision regarding the motion. It is not right to hold a connection between the IMF and the motion.''
When asked, ''will the economy be weakened as the support would not come to Turkey because the motion has not passed,'' Gul said if necessary, extraordinary measures would be taken in case of extraordinary situations. Gul said, ''we prepared our budget cautiously under current situations. We made it open and transparent.''
Responding to a question if there were preparations for a new motion, Gul said, ''this is a process which is under evaluation. Everything is evaluated within the party and the government. I spoke to the U.S. Secretary of State Colin Powell by phone on Sunday. They also evaluate the issue under mutual understanding. There is nothing to say about the decision taken by the Parliament. Everything took place within a democratic processes.''
When a reporter asked, ''what will happen from now on. Is Turkey expecting a new opening? Will there be a new initiative regarded with the motion in case this opening is provided,'' Gul said, ''we are evaluating all those. Obviously, Turkish-U.S. relations are important. The relations will continue in any case. Our talks are carried out within mutual understanding and respect. We will altogether see what will happen in the coming days.''
When asked when Council of Ministers would convene, Gul said, ''Council of Ministers will convene in a regular way. We can convene anytime. We will evaluate developments. The meeting of Council of Ministers is not difficult. If we want, we can convene today or tomorrow. What will happen is not known yet. But, there is a tense process in the region. We don't know the results of it, either. Thus, it is very normal for me to say those things here. However, if there are extraordinary developments, ministers come together and discuss them.''
Asked whether he had an impression that the United States would wait for evaluation process in Turkey and what situation of soldiers and equipment in bases and ports in Turkey would be, Gul said that Turkey and the United States were in a process of mutual evaluation.
When asked whether another head of state except U.S. State Secretary Colin Powell called him, Gul said, ''no. But, there are mutual talks between our Foreign Ministry and U.S. officials.''
Replying to a question on situation in Northern Iraq, he said that all those things were evaluated.
When a reporter said, ''National Security Council (NSC) will convene in an extraordinary meeting? And what do you think about some views which say that rejection of the motion relates to NSC's not taking a decision on the issue?'' Gul said, ''I don't want to say anything about the decision of the parliament,'' and added that he could not say whether an extraordinary meeting of NSC would be held or not. He stated that if there was such a call for the meeting, it could be held.
Replying to a question which said, ''can there be a new programme with the IMF?'' he said, ''those developments and IMF should be kept different from each other. If there is an extraordinary development in the region, measures will be taken. It is not concerned with IMF. But the important point is that things which are made should be clear and satisfactory. I am sure that IMF will examine those things.''
Upon a question on aid package from the United States and asked whether there would be problem in paying debts, Gul said that there was not any problem.
GUL: ''EVERY KIND OF ADDITIONAL MEASURES WILL BE TAKEN TO PRESERVE ENVISAGED PRIMARY SURPLUS IN CASE OF POSSIBLE DEVELOPMENTS IN OUR REGION AND IN CASE BUDGETARY PERFORMANCE REQUIRES''
Gul said that every kind of additional measures would be taken aiming to preserve the envisaged primary surplus in case required by possible developments in the region and in case budgetary performance requires.
Gul, pointed out that when it has been taken into consideration that commodity credits had not been included in the preliminary budgets in the past years, this 6.5 percent rate indicated a stronger fiscal harmonization when compared with the previous years.
Gul said measures which will increase income and which will prevent extravagancy in expenses were determined aiming to provide the fulfillment of budget targets.
''Our government has put some of those measures into enforcement, and will implement some others in the possible soonest time. Every kind of additional measures will be taken against every possible development that may appear in the region and in case budgetary performance requires,'' Gul stated.
Gul said the government was also resolved to decrease public debt stock in the medium term, and reduce real interests.
Gul said this target could be revised in case different developments are taken. He said the reform package pertaining to indirect taxes, to form a healthy tax system, and to reach a strong income structure, would be presented to the Parliament in the coming days.
Gul said on the other side, there would not be any amnesty from now on about public credits, or restructuring.
(AY-AÖ) 03.03.2003