Foreign investors have no doubt about economic program: Şimşek

NEW YORK

Foreign investors trust Türkiye and their worries about the economic program the government implements have disappeared, Finance Minister Mehmet Şimşek has said.

“Last year, we explained the economic program to them [foreign investors]. They had lots of questions marks. We saw that this year all those hesitations are gone. Because our program works,” Şimşek told state-run broadcaster TRT HABER in New York.

The economic program yields results and is implemented successfully; therefore, investors' interest is very strong, the minister added.

Foreign investors are not asking questions such as if the program will continue or whether this new approach is sustainable, they are more inquiring about what the results of the problem would be from now on, Şimşek said, noting that this marked an important threshold.

“We will continue to implement this program with determination. We will lower inflation, we are reinstating budget discipline, we are accumulating reserves and we are reducing Türkiye’s vulnerabilities,” the minister said.

Şimşek has been in the United States to attend the International Monetary Fund/World Bank spring meetings. He also met with investors and executives of credit rating agencies in New York at an event.

Şimşek has recalled that credit rating agencies have upgraded Türkiye’s outlook to positive.

This means they will upgrade Türkiye’s credit rating in the period ahead, he said, adding that it would not be right to comment on the timing of the upgrades.

“But what is important for us is this: If you look at the pricing of Turkish assets in the markets, they are already pricing at least twice the current credit rating. The market has already made its decision,” Şimşek said.

Foreign investors’ interest in Türkiye has now turned into fund inflows, he added, noting that portfolio investment inflows have reached $17 billion.

Şimşek reiterated that inflation will decline sharply starting from June and this will happen in line with the predictions in the economic program.

The annual inflation rate accelerated from 67.07 percent in February to 68.5 percent in March. The monthly inflation rate, however, eased from 4.3 percent to 3.2 percent.

“On the one hand, we will reduce inflation, while establishing fiscal discipline and reducing the foreign deficit. At the same time, we are strengthening Türkiye with structural reforms,” he said.