Interview: Mehmet Şimşek How did the government perform in fiscal terms during 2011, and what steps have been taken to reduce the trade deficit? MEHMET ŞİMŞEK: On the fiscal front, our core achievements since 2002 have been a significant reduction in debt and the deficit. We lowered the general government deficit from 10.8% of GDP in 2002 to 0.6% in 2011. Similarly, gross public sector debt…
Interview: Ali Babacan What steps is Turkey taking to achieve a sustainable level of economic expansion? What factors drive growth in the face of global instability? ALI BABACAN: Turkey’s endurance during the global crisis is the result of consistent and determined efforts to achieve structural reforms in economic, financial and social issues. Reforms of the past decade have successfully transformed…
Interview: Vedat Akgiray What effect will recent changes to the Turkish Commercial Code have on foreign investment? VEDAT AKGİRAY: This is the first time there is specific reference to issues about corporate governance in the code. It is not only shareholders’ rights that are being addressed. but many topics under corporate governance are also being considered. A commercial code is for companies,…
Interview: Martin Spurling, Adnan BaliHüseyin Aydın The Central Bank of the Republic of Turkey (CBRT) implemented unconventional policies in 2011, lowering the interest rate but raising reserve and capital requirements. How did this affect banks? MARTIN SPURLING: Some of the central bank’s more “unorthodox” policies can make it more difficult for banks to plan for the period ahead,…
Interview: Tony Hayward How much has security and stability contributed to the economic success of the Kurdistan region and to attracting investment? TONY HAYWARD: I think you have to recognise the great success the Kurdistan region has had in creating a secure and stable operational environment. That is, of course, where we are focused and it is the bedrock of economic success. Without security…
Interview: Muharrem Dörtkaşl How is the defence industry tailored to address national security concerns? MUHARREM DÖRTKAŞLI: Turkey shares borders with eight countries and has coastal borders extending some 7200 km. Externally, Turkey is maintaining relationships all over the world, and homeland security and national defence are closely related with our neighbours’ political status. Meanwhile…
Interview: Avni Çelik Interest rates in Turkey have dropped in recent years. How has this affected demand for housing loans? Do you expect growth in mortgages? AVNI ÇELİK: Real interest rates are still quite high when compared to the average in the developing world. The interest rates for mortgage credit are not below 13-14%, making instalment payments high. For example, paying off the mortgage…
Interview: Taner Yıldız How does the government plan to achieve greater energy resource independence, and how will wind and solar resources play a role in this process? TANER YILDIZ: Turkey is an import-dependent country – 72% of our energy comes from abroad. To reduce our current dependence on imports, we need to increase utilisation of domestic and renewable resources. The search for petroleum…
Interview: Temel Kotil Are Turkish carriers facing increased competition in the domestic market from international players? TEMEL KOTİL: We have two markets in which we compete. One is the Turkish market, including domestic point-to-point traffic, and the second is the global transfer market. In the former, we have about 60% of the market and this is growing because Turkey has a healthy economy,…
Interview: Ahmet Haluk Karabel Urbanisation is a global challenge. What is, in your view, the best way to address this issue in Turkey? AHMET HALUK KARABEL: Since the 1950s, the world’s urban population has swelled from one-third to two-thirds of its total inhabitants. By 2050 it is expected that approximately 6bn people will reside in cities. Turkey has been a clear example of this trend. Urbanisation…
