Albayrak vows cooperation with int'l stakeholders, Central Bank independence on Turkey’s new economic model

ISTANBUL

Treasury and Finance Minister Berat Albayrak has vowed to execute Turkey’s new economic model together with “all national and international stakeholders,” while stressing that a "decisive" approach and the Central Bank's independence would be maintained.

“One of the most important elements of our new economic approach is that it is a decisive approach,” Albayrak told leading private sector representatives as he revealed his plans at Istanbul’s Dolmabahçe Palace on Aug. 10

“In this process, we will finely work every single detail as a wide spectrum including all national and international stakeholders,” he said in the first part of his speech, referring to Turkey’s Medium-Term Economic Plan (OVP), which will soon be renamed.

“Another of our main principles is to establish full independence of monetary policy. I refrain from talking about the Central Bank as much as I can and when I have to speak, I use a sensitive language. The Central Bank’s independence should always continue as a principle. Its independence is very important. Reinforcing financial stability will be one of our high priority targets,” he added.

The new set of economic steps are aimed at securing an economic growth of 3-4 percent in 2019, and decreasing the inflation rate to single digits, the ministry said in a press release on Aug. 9.

“It is expected that the current account deficit would be balanced at around 4 percent,” the ministry said, adding that a saving program in the public sector, which was launched this year, will continue in the medium-term.

The ministry added that it will continue to take steps to cut budget deficit to around 1.5 percent of the country’s GDP.

“The inclusion of foreign investors and foreign funding will be sought specifically in infrastructure projects,” read the release.