Babacan In Washington D.C.

WASHINGTON D.C. - State Minister Ali Babacan said on Friday, ''scenarios of disaster about impacts of the war in Iraq on Turkish economy have turned out to be nothing as a result of measures taken by the government. This situation was welcomed by the IMF.''
Responding questions of journalists, Babacan, who is currently in to attend spring term meetings of the World Bank and the International Monetary Fund (IMF), said, ''some circles wrote scenarios of disaster about impacts of the war in Iraq on Turkish economy. These scenarios have turned out to be nothing as a result of measures taken by the government. It is a sign of perfect coordination of the economic management.''
Recalling that he came together with IMF First Deputy Managing Director Anne Krueger, IMF European I Department Director Michael Deppler, IMF Turkey Desk Chief Juha Kahkonen, Reza Moghadam, Central Bank Governor Sureyya Serdengecti and other Turkish officials at dinner, Babacan said that impacts of the Iraq war on Turkish economy were taken up.
''IMF officials expressed their satisfaction with Turkey's policies in such a difficult period,'' he said.
When recalled by a journalist that the U.S. administration had allocated 1 billion U.S. dollars for Turkey in its supplementary budget, Babacan told reporters, ''Turkey has the capacity to decrease impacts of the war to the minimum as a result of measures taken by the government.''
Babacan recalled that donation to Turkey was still discussed at the U.S. Congress and that this would be presented to the U.S. President George W. Bush for confirmation. Babacan said Turkey already took measures by thinking that no aid would come from outside, and that it would continue to take measures.
When asked which choice Turkey would prefer in case the aid passes from the U.S. congress, the one billion U.S. dollars donation, or the 8.5 billion U.S. dollars credit, Babacan said first the implementation of the procedure should be considered, yet that he thought usage of it as credit would be more appropriate.
When recalled that the U.S. support, in the text that was accepted in the Senate, was connected to the condition of Turkey's not entering northern Iraq, Babacan said text of the Representatives Assembly and Senate was not definite yet, and that such a condition was not clarified yet.
Babacan said Turkey has not asked for any aid, stating that it depended on the United States administration how the aid would be. Babacan said the aid was not an issue for Turkey that has priority.
When asked whether or not it was in question for him to meet with the officials of the U.S. administration, Babacan said the U.S. officials asked to hold meetings with him.
Babacan will meet with IMF Managing Director Horst Koehler, World Bank President James Wolfensohn, and finance Ministers of France and Germany.
(UK-AY) 11.04.2003