Deputy PM Şimşek’s areas of responsibility limited in new cabinet

ANKARA

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Deputy Prime Minister Mehmet Şimşek, long a favorite of investors, has been dealt reduced responsibilities in the new cabinet of Prime Minister Binali Yıldırım. 

Şimşek will continue to oversee the Treasury, Central Bank and state-run banks in the new cabinet, but his portfolio has shrunk, with the regulation of banks and capital markets given to another deputy prime minister, Nurettin Canikli. 

The responsibility for the Banking Regulation and Supervision Agency (BDDK), the Capital Markets Board (SPK) and Savings Deposit Insurance Fund (TMSF) were given to Canikli, Numan Kurtulmuş, another deputy prime minister, said late May 25. 

Şimşek, an anchor of investor confidence and a strong supporter of reforms, was again named as one of five deputy prime ministers on May 24, bringing relief to markets, after President Recep Tayyip Erdoğan appointed Yıldırım as his new prime minister.

Some investors are concerned that reform momentum will slow under Yıldırım, who has promised to introduce the executive presidential system that Erdoğan wants.

The government dismissed such worries, saying a reform package on financial markets and the real economy would be presented to the cabinet soon, adding that they would do “whatever it takes” to attract foreign investors.

Yıldırım announced a new government program on May 24 that vowed to maintain fiscal discipline, protect Central Bank independence and fight structural problems hindering price stability.

The program, read out by Yıldırım in parliament after he earlier named his new cabinet, also vowed to tackle the country’s current account deficit and to implement economic policies focused on boosting growth, employment and production.