Union of Chambers and Commodity Exchanges of Turkey

TOBB President M. Rifat Hisarcıklıoğlu, in his speech at the meeting held in honor of Babacan’s visit, said thatr the government and Deputy Prime Minister Babacan have put great importance on the real and private sectors in the last 10 years.

Stating that despite some deterioration of financial indicators, there has been no decrease in production capacity, Hisarcıklıoğlu said, “As the real and private sectors, having achieved growing the economy in the last 10 years, we will continue to work with our responsibilities in mind. By making more production, more investments, more employment and more exports possible for our country, we will be the surety of our country in reaching its 2023 goals.”

- Deputy Prime Minister Ali Babacan

Speaking about the developments which have effected the economy of Turkey in recent months grouped under various topics, Babacan stated that one of these is the global conjunction.

Stating that one of the factors which has effected developing countries the most is the announcement by the US Fed that it would be changing its money policy, Babacan pointed out that another issue for the global conjunction is the persistence of the structural problems in Europe.

Babacan stated that another matter is that of structural economic issues reporting that dependence on foreign petroleum and natural gas as well as low austerity are the underlying causes of high current deficit in Turkey.

Drawing attention to the fact that another matter Turkey must keep in perspective in regards to current deficit is gold commerce, Babacan stated that the current deficit for 2011 which was 9.2 was only 6.8 with gold omitted. Babacan stated that they expect around 6% current deficit with gold omitted this year.

Stating that a review in the pricing of bills of exchange and stock certificates may be considered, Babacan said, “It is fortunate that we are not faced with as grim a tableau as we might be when we consider de facto increase.”

Babacan reported that Turkey’s economy is founded on a much more solid base than before and that public finance is in a very good position.

Babacan stated that the average domestic credit duration in 2002 was 9 months whereas it now is 73 months while the foreign credit duration has reached 20 years.

Babacan said that the strength of the banking sector is another reason for the robustness of the economy.

Stating that the use of macro interim injunctions is what sets Turkey apart from other countries, Babacan reported that despite the recent crisis, Turkey’s credit notes have increased and Turkey has been classified as investable by two credit grading agencies.