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Anadolu Agency: News in English, 01-04-14Anadolu Agency: News in English Directory - Previous Article - Next ArticleFrom: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>Anadolu AgencyANADOLU AGENCY NEWS 14 APRİL 2001 Saturday CONTENTS
[01] TURKEY-PRESS SCANThese are some of the major headlines and their brief stories in Turkey's press on April 14, 2000. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.HURRIYET (LIBERAL)ARE YOU MENTIONING SAVING?When the whole country starts to make saving due to the economic crisis, Transportation Minister Enis Oksuz went to southern Adana province by a private plane to attend the ceremony to lay the foundation of a sewage system for one hour. In the current situation, eight generals get on one minibus to make saving. TENTH PERSON DIES DUE TO DEATH FAST PROGRAM DECREASES U.S. DOLLARS MILLIYET (LIBERAL)MONETARY BOARD ON THE WAYThere will be no new taxes. The inflation target is 55 percent. Repo transactions will be made difficult. The final shape of the economic program which was prepared by State Minister Kemal Dervis was given in the leaders' summit last night. The economic program will be announced at 11.30 a.m. today. And, Prime Minister Bulent Ecevit and deputy prime minister Devlet Bahceli and Mesut Yilmaz will express their political determination about the implementation of the economic program in a press conference that will be held at 1.00 p.m. today. WHAT KIND OF A DOCTOR IS THIS? SABAH (LIBERAL)TWO INVESTIGATIONSPre-investigation has been launched into Gazi Ercel, the former Central Bank governor who changed his 51 billion Turkish liras (TL) into U.S. dollars when crisis occured in February. An inspector is examining Ercel's bank accounts while another inspector is examining the banks which bought 5 billion U.S. dollars from the Central Bank one day before the devaluation. CONGRATULATIONS DERVIS! CUMHURIYET (LEFT)RITZEN SAYS RICH PEOPLE WILL HAVE CONTRIBUTIONS TO OVERCOME CRISISWorld Bank officials emphasized that the rich people should make the biggest contributions to overcome the economic crisis. World Bank Vice President Josef Ritzen drew the attention that the poor people should not be negatively affected by the crisis. Ritzen said that the discussion of the political implementations and the economic program with the public is important. RECORD RISE IN OIL PRICES: 57 PERCENT RADIKAL (LEFT)SILENCE OF DEATHChairmen of three bars who met with Justice Minister Hikmet Sami Turk said that the article 16 of the Anti-Terror Law can be annuled by an administrative arrangement. Istanbul Bar Chairman Sayman quoted Turk as saying that he would not take a backward step. Sayman said, ''prevention of death is a forward step.'' The only initiative that can be observed for the time being is some contacts of the Parliamentary Human Rights Commission. MAGIC OF FESTIVAL TURKIYE (RIGHT)DEMONSTRATION IN ISTANBUL AND IZMIRThe Labour Platform will stage demonstrations in Abide-i Hurriyet Square in Istanbul and Gundogdu Square in western Izmir province. Security forces have taken tight security measures due to the demonstration. HERE ARE MAIN TARGETS TOURISM IS THE HOPE ZAMAN (CONSERVATIVE)SUPPORT OF NATION OBLIGATORYPresident Ahmet Necdet Sezer said that problems can be overcome within the framework of democracy. Metin Yalman, the spokesman of the Presidential Office, quoted Sezer as saying that the support of the nation will contribute to successes of the country. ARMENIAN AGENDA WITHOUT ANY ARMENIAN PARTICIPANTS -DEPOSIT INTEREST RATES OF BANKS Interest rates (percent) Name of Bank 1-Month 3-Month 6-Month 12-Month ------------ ------- ------- ------- ------- Bankekspres 90 90 70 70 Citibank 90 80 55 50 Demirbank 103 33 33 33 Disbank 43 45 46 47 Emlak Bankasi 103 95 70 70 Etibank 103 95 75 75 Finansbank 92 80 35 34 Garanti Bankasi 80 60 43 43 Halkbank 100 95 80 75 Is Bankasi 81 71 51 51 Korfezbank 105 85 D D Osmanli Bankasi 75 71 50 50 Pamukbank 98 94 58 58 TEB 85 80 48 43 Toprakbank 110 90 45 30 Turkbank 80 60 50 50 Vakifbank 37 36 33 30 Yapi Kredi Bankasi 93 94 64 59 Ziraat Bankasi 100 95 80 75 D indicates a variation in accordance with the situation when the money will be deposited. -SECURITY FORCES TAKE TIGTH MEASURES Security forces took their places in Izmir Street, Sakarya Streets, at the intersection point of Mithatpasa and Yuksel streets, around the Interior Ministry and the Prime Ministry. The entrance gates of Guvenpark to the Kizilay Square were blocked by the security forces. A police helicopter started to fly over Kizilay. A group from Labour Platform will release a press statement in the Guvenpark around 11.00 a.m. Unfavourable incidents had occured in the Tandogan Square on Wednesday. To this end, the Ankara Governorship banned all demonstrations and protests in the capital for one month. The Labour Platform had previously taken a decision to stage a demonstration in the Kizilay Square on April 14. However, the Labour Platform decided to only release a press statement due to the ban of the Ankara Governorship. -LABOUR PLATFORM CHAIRMANSHIP COUNCIL RELEASES PRESS STATEMENT The Ankara Governorship limited the press statement by 15 minutes and did not permit slogans. Kaya Guvenc, the term spokesman of the Labour Platform, read out the press statement. Guvenc said that hundreds of thousands of people throughout Turkey are searching for their rights in streets. Hundreds of thousands of people who are the members of the Labour platform is saying no to corruption and poverty, Guvenc noted. Guvenc claimed that the governments, which have promised to solve the problems of the workers so far, protected the capital and the bosses. ''If we want to save ourselves from the crisis and be hopeful for the future, we have to change this table and the receipt. The program of the Labour Platform is clear. Whoever pushed the country into a crisis has to pay the price. Whoever emptied the coffers of the banks has to pay the price. The labour security law should be immediately passed and the scope of unemployment insurance should be broadened,'' Guvenc said. Guvenc continued, ''the dismissal of workers due to economic crisis should be prevented. Trade union rights which are given by collective contracts having the item of right to strike should be recognized to the public workers under International Labour Organization (ILO) standards. Efforts should be launched with determination against corruption. Those who are responsible for corruption, particularly politicians, should be revealed and these people should pay the price.'' The ban of demonstrations of Labour Platform indicates that the government insists on its wrong attitude, Guvenc said. Guvenc noted that the organizations which hold demonstrations for years defend democracy and express the rightful demands. The ban of the demonstrations of Labour Platform means being scared of hearing the voice of the platform, Guvenc added. Meanwhile, some people shouted slogans saying ''we will gain by resistance'' and ''go IMF. This country is ours.'' Following the press statement, the members of the chairmanship council of the Labour Platform departed from the Guvenpark. -STATE MINISTER DERVIS: Dervis told a press conference that they are searching for solutions that are suitable for Turkey's current situation and conditions by taking lessons from the past and looking at the experiences of other countries. Emphasizing that the new program aims to set Turkey fast back to the growth it deserves, Dervis said, ''this is our target. To set back to the growth immediately. But, I want to say that we may have to adjust to new developments and to take new steps in the changing world.'' (To be continued) -STATE MINISTER DERVIS (2): Staging a press briefing in the Treasury Undersecertary, Dervis said that the programme should also have certain principles, adding that they will never ignore the main principles. Dervis said that the most important principle is to tell the truth to the people, pointing out that if the state has a debt, this can't be hidden at public banks. ''Whatever that debt is, everybody should know it. And everybody should know how that debt became and how it will be paid,'' he said. ''Our second principle should be not to put a dynamite on our future in order to save today. This is a long term struggle. Growth is a long term process. We must develop long term strategies rather than short term ones as Turkey's population is very young. Don't expect solutions which saves the day from us. We want to build the happy future with the support of our people. Maybe nowadays, we will return to our homes tired but we will wake up happy in the morning,'' he said. Pointing out that he wanted to share the point they reached, Dervis said the program was prepared to a great extend. Dervis said, ''we are in full agreement with the organizations that will extend support to us, and we are also in full agreement on many issues that will expend this support. Works are underway regarded with some details, and particularly on foreign finance, and its amount. We will reach a result soon. Of course we will want to look and march forward. However, there is the obligation to understand the past well to see the right.'' Dervis said that they may have to adjust to new developments and to take new steps in the changing world. Giving an example from the football world, Dervis said, ''Galatasaray or another team each have a strategy. While in accordance with the course of the match, they maintain the match in accordance with the movements of their rivals. Everything cannot be foreseen at the beginning. This is the same in economy. The rival and the target should be definite but every opportunity should be seized to score the goal.'' Dervis added, ''of course, the quality of the players are as important as the strategy. The quality of the individuals and more important the quality of the team is important. Taking action as a team is very important. We are a family with our friends here. And, I hope we will score many goals.'' (To be continued) -NEW ECONOMIC PROGRAM TARGETS YEAR-END WPI RATE AS AROUND 57.6 PERCENT The new economic program foresees the year-end inflation rate in 2002 as 16.6 percent in WPI and 20 percent in CPI. The new economic program targets at a growth rate at -3 percent in the Gross National Product (GNP) of 2001 and 5 percent in the GNP of 2002. The proportion of non-interest overall public balance to GNP is 5.5 in 2001 and 6.5 in 2002. The proportion of non-interest consolidated budget balance to GNP is estimated as 5.1 percent in 2001 and 5.6 percent in 2002. The proportion of non-interest State Economic Enterprises (SEEs) balance to GNP is calculated as 0.1 percent in 2001 and 0.5 percent in 2002 while that of the other public institutions as 0.3 percent in 2001 and 0.4 percent in 2002. -STATE MINISTER DERVIS: ''WE WILL OFFICIALLY PRESENT THE PROGRAM Dervis, who staged a news conference to announce the economic program, said they were in an effort to provide a foreign support worth of 10-12 billion U.S. dollars, and noted that they wanted to conclude the works in this respect next week. Stressing that everybody wanted to see the details of the program for foreign financial support, adding that they benefitted from the experiences of the IMF in the preparation of the new economic program. (to be continued) -STATE MINISTER DERVIS (4): Noting that the arrangements in the real sector are very important, Dervis said that ''Sugar Law, Tobacco Law, Natural Gas Law, Telecom Law and the change in civilian aviation...All of them are studies taken for the real sector and they have great importance in reconstruction.'' Dervis said that they aim at making the real sector have a strong structure to compete, preventing the losses of the state in real sector, and making it work in a more healty way in this competitive structure and developing both production and exports. Pointing out that Turkey should make production particularly in agriculture, the sector which it has competition power, Dervis said, ''if a product is produced and destroyed, this does not have benefit to the farmer, economy or the state in long term. Thus, whatever the world prices and the world markets require, and in which field Turkish economy can make profit, production should be made in those fields, and Turkey should grow in those fields.'' Dervis said there will be a transition period, adding that support should be extended to many sectors, and particularly the farmers, in this transition period. He said this should be materialized as the direct support to income. Dervis said those works progressed especially in the agriculture ministry, and that those works should reach its targets at this stage and direct support sources should reach the targets, adding that, ''social dimension of this work is important in transition period. In those days when we re- structure production, this social support should be functioned.'' Drawing the attention to the importance of the telecommunication sector in the new economy and the world, Dervis said, ''we will present the parliament a new law which is suitable for the strategic aims of Turkey by taking into consideration the elements related with the national defense.'' Dervis added, ''under this new law, the telecommunication sector will be open to competition and can serve the economy more efficiently and with lower costs by the power of the private sector. Also, selling the majority of the shares of the Turk Telekom to the foreigners were not considered as appropriate. Shares of the Turk Telekom will be sold to the foreign strategic partner through block sale but the amount of the shares sold to the foreign partner will remain below 51 percent.'' (To be continued) -STATE MINISTER DERVIS (5): Dervis told a press conference that the foreign investors who will make investments in Turkey for the time being will have significant profits. ''The foreign investments will not be profitable for the first two or three months but they will be very profitable in the following one or two years, '' Dervis said. Dervis noted that the inflow of foreign capital will be very beneficial to Turkey. (To be continued) -STATE MINISTER DERVIS: Addressing a news conference staged in Treasury, Dervis said unfortunately, in the year 1999, total debts of Turkey increased so much. He said, ''unfortunately, at the beginning of the year 2001, this debt stock reached 65 percent. This is a very big increase. Doubling of debt stock put the Turkish state and Turkish economy under a very big burden.'' Pointing out that this debt stock's interests reached to the level of 31 percent of Turkey's income in the year 1990, and noted that 95 lira of every 100 lira tax income was spent to the interest. Dervis said, ''it is impossible for us to continue like this, and grow economy. It is impossible for us to continue with this public deficit, high real interest, and high debt. We can not say, 'let us make debt some more, and not think of long term.' This is also valid for a family, for any unit and the state. If the interest that is paid is above the growth after the inflation falls, it would not be possible to reach balance. We should approach the real interest and the growth together. Moreover, we should make the growth above the real interest. The real interest sometimes realized as 25-30 percent. Sometimes, its average was 25-30 percent in 1990's. In fact, our growth rate was unfortunately remained as 2-3 percent.'' Touching on the duty losses of the public banks, Dervis said that it can be understood why they ended the order which caused the current situation of the public banks when the picture regarding this issue is taken into consideration. Dervis noted that it is impossible not to be surprised when they look at the picture. There were no duty losses of public banks in 1992, Dervis stated. But, today, the duty losses of the public banks is equal to 20 percent; that is, one-fifth of the national income, Dervis said. Dervis pointed out that this debt stock is in fact a debt stock belonging to the public sector. ''This situation will change as the Treasury Undersecretary takes over this and carries out a rational, efficient and honest management. This new situation will permit the debt stock of Turkey to be managed by the lowest cost. As you know, a new management of the Ziraat Bankasi took over the office two weeks ago. The plenary session of the Halk Bankasi has been done and the management has changed. Similar efforts will be exerted in the Emlak Bankasi next week,'' Dervis said. Dervis continued, ''these banks should immediately be saved from their liabilities except the support to the producers, farmers and the tradesmen. There are many distinguished people working in the banks. There is not any situation not to better the situation quickly. The banks have to work seriously and without any political intervention.'' ''Meanwhile, the Treasury debt and all the public debts will be administered by one force in a transparent and continual way. I also want to emphasize that every kind of administrative and legal pursuit will continue. The change in order of the public banks is a reform. I wish this reform to be beneficial to our nation and economy,'' Dervis added. Dervis said that they look forward and that this initiative is not only a stability program. ''Yes, we will altogether tighten our belts,'' Dervis added. (To be continued) -STATE MINISTER DERVIS RESPONDS TO QUESTIONS (1) Upon a question, Dervis said that ''even if 99 percent of the Turkish Telecom is privatized, there will not be a block sale to foreigners more than 49 percent of its shares.'' Noting that the authority to give licence related to Turkish Telecom will be at Competition Board, Dervis said that there will be an administration which will provide rapid privatization fo Turkish Telecom. When a journalist told him that the government asks the civil servants, tradesmen and workers to save money, but the state does not save money itself, Dervis said that the state will make savings in an important degree in 2001, there will be a 9 percent decrease in public expenditures this year and the public sector will provide a non-interest surplus of 5,5 percent at the basis of Gross National Product (GNP). ''All of these things show the efforts of the state to save money,'' he said. Upon a similar question, Finance Ministry Undersecretary Ertan Dikmen said in his part that the savings will come true by structural changes, adding that they don't focus on a saving which will only help in overcoming this crisis in the short term. -LEADERS COME TOGETHER The meeting at the Prime Ministry started at 13.05 local time. Premier Bulent Ecevit, and deputy premiers MHP leader Devlet Bahceli, ANAP leader Mesut Yılmaz and Husamettin Ozkan participate in the meeting. The new economic programme announced by State Minister Kemal Dervis will be discussed in the meeting and they will prepare for the press briefing planned to be held at 14.00 local time. -STATE MINISTER DERVIS (7): Dervis told a press conference that this initiative is not only a stability program and that they have to altogether tighten the belts. ''You have seen the interest income balance. I think all of you can understand how narrow the situation of the budget is because 90 percent of the budget has to be allocated to interest payment. But, stability, itself, is not sufficient. We have to start a reconstruction process by stability and to change Turkey's economic structure. We cannot restore stability and confidence without this reconstruction,'' Dervis said. Dervis noted that what has to be done is not to continue the program by debts. ''What we have to do is to change Turkey's economic structure. If we do not do this, we cannot end being debtor and we cannot establish macro-economic balances,'' Dervis said. Dervis stated that some legal changes are necessary for this reconstruction and that the prior legal changes are related with the public banks and public management. The public sector has to work as a whole and more rationally, more carefully and efficiently, Dervis pointed out. Dervis continued, ''the borrowing law, expropriation law, the law to make majority of non-budgetary funds rational and then to close them, and the public tender law have been presented to the parliament and such efforts will continue. Both these initiatives target at the management of the public revenues and expenditures efficiently and interactively with the real sector.'' ''Let's take the borrowing law as an example. The Treasury will administer the borrowing policy in one hand. The parliament will be informed every three months. The borrowing and standing as a surety system will be arranged by one law and clear and transparent rules will be made related with the borrowing management,'' Dervis added. Pointing out that the guarantee problem was a very important problem, Dervis said it was natural to give some guarantees, regarded with the state, to some investors who bring source and technology to Turkey. Dervis said, ''however, those projects should be beneficial to Turkey, and the details should be appropriate to this guarantee. We should examine each of them carefully, and should not push Turkey under very big commitments and big debts again. If there is a project which the Turkish economy really needs, and if investments will be made to that project, of course, guarantees will be given to a rational and moderate extend. Pointing out that expropriation would be facilitated with the Expropriation law, Dervis said expropriation procedures would not be started before adequate allocation is provided with the law. Dervis said, ''Public tender law is a very important one. It would be possible to obtain an important saving from the cost with a system which is open, abiding by European institutions, and based on competition.'' Pointing out that second part of the legal arrangements was regarded with the banking and finance sector, Dervis recalled that new draft law on the Central Bank was presented to the prime ministry. Dervis said, ''Central Bank will be turned into a strong and independent Central Bank that fully abides by the European standarts. In fact, our Central Bank advanced much in this respect. It is a very strong Central Bank that operates well. However, with this law, it will progress further, and gain the qualities of the central banks like in the developed countries. This is a very important step fight against inflation in the long term. A central bank, which carries out autonomous monetary policy in a free and strong way, is a very important guarantee in a country which fights against inflation.'' Stressing that banking and finance sector received a mass blow from the recent crisis, Dervis said, ''thus, the section regarded with banking, is very important in legal arrangements.'' Dervis said they carried out very intense works about banking sectors, noting that, ''works are underway. Required arragements are underway to give service for production, farmers, and tradesmen. I think that most important of these implementation is to inspect the banks in an order that they would serve the economy, encouraging its owners to increase their capitals.'' Dervis said those works progressed rapidly together with the Banking Regulatory and Supervisory Board, adding that, ''we will present the banking law to the parliament in the coming days, and thus we will be able to take steps toward our target to put an end to crisis in banking sector.'' Dervis said, ''as the government stressed before, deposits of everybody is under absolute guarantee. There should not be the least discussion and suspicion in this respect. Deposits of everybody is under absolute guarantee of the Turkish state.'' -ECONOMIC PROGRAM UNVEILED The first chapter of the new economic program titled ''the main aims and means of the program'' lists the main targets as follows: - Disinflation efforts will be continued without and interruptions and with determination in the floating exchange rate regime. - A quick and comprehensive reconstruction is targeted in the banking sector, particularly the public banks and the banks transferred to the Savings Deposit Insurance Fund (SDIF). Thus, a strong relationship between the banking sector and the real sector is planned. - The new economic program aims to provide transparency in the allocation of public resources, to prevent irrational interventions which will have no return, to strengthen better government, and to continue anti-corruption efforts. - The program includes definite political commitment and support to reach foreseen targets and to reconstruct economy. - The program targets at strengthening the public finance balance in a way that will not be deteriorated again. -SLIGHT INCREASE IN FOREIGN CURRENCIES One U.S. dollar is sold at 1 million 220-230 thousand Turkish liras (TL) and one German mark at 560-570 thousand TL. The buying price of one U.S. dollar is 1 million 200-210 thousand TL and that of one German mark is 530-548 thousand TL. Meanwhile, one U.S. dollar is sold at 1 million 215-220 thousand TL among the citizens. Experts said that there was not a clear announcement that the new economic program will brake the rise in foreign currencies. The experts noted that they do not expect a big change in foreign currencies since it is Saturday, but that the foreign currencies will take their position in accordance with the position of the banks on Monday. -STATE MINISTER DERVIS RESPONDS TO QUESTIONS (2) Dervis responded to questions of reporters following his press conference. Asked how he can guarantee that they will not give away any goals when the new economic program is being implemented, Dervis said, ''it is not so easy to guarantee this. But, I think we will score more goals, but give away fewer goals. I think the most important goals will be scored in tourism and exportation.'' Responding to the same question, Foreign Trade Undersecretary Kursad Tuzmen said that Turkey has to restore the confidence within the framework of the new economic program. Tuzmen said that in accordance with the observation of the trade delegations in foreign countries, Turkey is considered as more stable and more reliable from outside. Foreign countries think this, Tuzmen noted, stating that in accordance with the Turkish lira (TL)- U.S. dollar parity, the TL is low and this is an advantage. Tuzmen said that they will try to benefit from this advantage in a short time. Within the framework of their strategy, the schedule of the trade delegations continue, Tuzmen pointed out. Tuzmen stated that Turkey's exportation increased ten percent between January 1 and April 11 when compared with the same period last year. This is an advantage, Tuzmen emphasized. Tuzmen said that if this situation continues in the same path till the end of May, the necessary foreign currency income will be provided by the tourism revenues. Tuzmen added that as the privatization revenues and foreign capital inflow are added, a good scene will occur. -PREMIER ECEVIT SAYS COALITION LEADERS SUPPORT ECONOMIC PROGRAM After holding a meeting with deputy prime ministers Devlet Bahceli, Mesut Yilmaz and Husamettin Ozkan, Ecevit together with Bahceli and Yilmaz released a press statement. Ecevit said that the legislation regarding the program will be finalized as soon as possible. The outlines of the new economic program was unveiled by Kemal Dervis, the state minister for economy, Ecevit noted. Ecevit stated that the source chapter of the program will become definite in the end of intensive contacts which will be carried out next week. ''We, the prime minister and deputy prime ministers Bahceli and Yilmaz support the program from the heart and with determination. Besides the foreign support we expect for the program, we believe that our nation will give the most efficient support. The heavy economic and social problems which are the accumulation of long years can only be overcome by the solidarity and self-sacrifice of our nation.'' ''The accomplishment of the program depends on the rapid preparation and implementation of laws which are necessary for the structural changes. Most of the laws related with structural changes have been made by the efficent initiatives of our government and the parliament,'' Ecevit said. Ecevit added, ''the legislation regarding the program will be finalized as soon as possible. We, the government, is grateful to the coalition and opposition parties for their valuable contributions. There is a hard period in front of us. Turkish nation, which has achieved to overcome very difficult problems throughout its history, will not have any difficulties in overcoming these problems. We believe that we can overcome inflation monster which caused big problems for the people with low income, that we can save our country from inflation-debt-interest spiral, and that we can pay the way for a just order by overcoming poverty and corruption.'' Ecevit, Bahceli and Yilmaz did not respond to questions.
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