Turkey determined to carry out reforms, Turkish president says

ISTANBUL

The Turkish government is determined to bring about a new era for Turkey’s economy and democracy, President Recep Tayyip Erdoğan said on Nov. 20, pledging to roll out new reforms.

“Now we are making preparations for new reforms and breakthroughs. We are determined to put our country in a new period of rising,” Erdoğan said in his speech at a trade fair in Istanbul.

“We are working on both strengthening our economic policies and raising the bar of democracy and freedoms while easing the daily life for our citizens,” he stated.

Noting that the support of the business circle and citizens is crucial to achieve the economic goals, Erdoğan said: “First of all, we must bring overseas savings to our country.”

He urged business circles to put money in investment, employment, production and exports.

Investments that spur production and employment will be accelerated by mobilizing domestic and international entrepreneurs, Erdoğan added.

“We should enhance the trust of our nation and investors in our national currency, the Turkish Lira, thus reduce the weight of foreign exchange currency in deposits,” he noted.

“In order to look at the future of our nation with confidence, we will implement whatever measures we need to take today,” Erdoğan said.

He reiterated his negative assessment on interest rates but said the Central Bank decision to hike the rates was part of this approach.

Erdoğan added that his new economic team will focus on avoiding the negative consequences of higher interest rates.

“We are also aware that we have to drink some pain medications at this stage if necessary. I evaluate yesterday’s interest rate hike decision within this framework,” he said, noting that the government’s main goal is to reduce inflation to single digits as soon as possible, then to the level of our medium-term targets, and to ensure that interest rates fall accordingly.

He stressed that they have to remove Turkey from the “spiral of interest, inflation, exchange rate.”

“Otherwise, we will have to pay for these costs. Interest [rate] is the cause. Inflation is the result,” he stated.

Preparations for new judicial packages are continuing, the president also said. He vowed to bring them to the agenda of parliament as soon as possible. “We will conclude and implement the human rights action plan with a much wider consultation,” Erdoğan stated.