Gov’t needs to push ahead with new steps

Bloomberg

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The government should implement measures "as soon as possible," Arzuhan Doğan Yalçındağ, chief of the Turkish Industrialists and Businessmen's Association, or TÜSİAD, told reporters in televised comments in Ankara yesterday.

The measures should be announced as a package in order to restore market confidence, not in bits and pieces, she said. The economic measures executed at once would be far more effective, Yalçındağ added.

Prime Minister Recep Tayyip Erdoğan should announce steps to strengthen confidence in the banking industry, including a draft proposal to increase the government guarantee on bank deposits from YTL 50,000 ($31,000) and reduce banks’ reserve requirements at the Central Bank, Yalçındağ said.

On crisis
There are two important aspects of the crisis: One being liquidity, and other confidence. TÜSİAD has been warning of the liquidity contraction around the world. "The government is currently working on an initiative focusing on liquidity. That is satisfactory. Striking a new loan deal with the IMF was one of those measures. A new IMF deal would provide a great benefit for Turkey." The government should also reduce sales taxes, said Yalçındağ.