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Anadolu Agency: News in English, 01-09-10

Anadolu Agency: News in English Directory - Previous Article - Next Article

From: The Anadolu Agency Home Page at <http://www.anadoluajansi.com.tr/>

Anadolu Agency

ANADOLU AGENCY

NEWS

10 AUGUST 2001 Monday


CONTENTS

  • [01] TURKEY-PRESS SCAN
  • [02] ENVIRONMENT MINISTER AYTEKIN LEAVES FOR ROMANIA
  • [03] FM CEM SAYS TURKEY IS ONE HUNDRED PERCENT RIGHT REGARDING ESDI
  • [04] TRNC NATIONAL PUBLIC MOVEMENT SAYS EMBARGOES SHOULD BE LIFTED FOR RESUMPTION OF TALKS
  • [05] PROMINENT PERSONALITIES OF TURKISH AND JEWISH SOCIETIES MEET IN NEW YORK
  • [06] TURKEY-EU RELATIONS -VURAL SAYS TURKEY IS NOW AT A JUNCTION
  • [07] FIRST INTERNATIONAL TURKISH-GREEK PHYSICS CONFERENCE BEGINS
  • [08] PRIME MINISTER ECEVIT RECEIVES MEMBERS OF EXECUTIVE BOARD OF TURKISH- AMERICAN BUSINESS COUNCIL
  • [09] PM ECEVIT: ''MR. DENKTAS DOES NOT ESCAPE FROM TALKS''
  • [10] CHHIBBER SAYS TURKEY COULD STILL ATTRACT FOREIGN CAPITAL
  • [11] FOREIGN MINISTER CEM MEETS EU FOREIGN POLICY CHIEF SOLANA
  • [12] BINAY: ''INFLATION TARGETING WILL SOON BE ADOPTED''

  • [01] TURKEY-PRESS SCAN

    These are some of the major headlines and their brief stories in Turkey's press on Sept 10, 2001. The Anadolu Agency does not verify these stories and does not vouch for their accuracy.

    HURRIYET (LIBERAL)

    CHAMPIONS OF OUR HEARTS
    Turkish national basketball team became the silver medalist by playing a final match in the Euroean Basketball Championship for the first time. Twelve giant Turkish men won silver medal in the end of the championship Which lasted for several days.

    13 MILLION TO GO TO SCHOOL
    The 2001-2002 school year will begin today. Almost 13 million students and 554 thousand teachers will go to schools today after the summer recess. 1 million 400 thousand children will start elementary school this year. The school year will end on June 14, 2002.

    MILLIYET (LIBERAL)

    'GIVE OUR MONEY BACK'
    Golcuk Quake Survivors' Association decided to launch legal initiative against Uzan Holding which did not pay 10 trillion assistance tax. Quake survivors reacted to Telsim cell phone operator which did not pay 10 trillion special communication tax to be given to quake survivors. Associations of the quake survivors decided to search for their rights by taking legal action. Quake survivors' associations will firstly ask the Finance Ministry and Prime Ministry what has happened to the tax.

    TELEPHONE TAPPING CUT
    Inspectors who carried out an investigation into telephone tapping upon the instruction of Interior Minister Rustu Kazim Yucelen have seen that an office was set up in Istanbul Police Department for telephone tapping. Three inspectors saw that a special device was assembled in the department to tap cell phones. The inspectors found out that the office did not have a legal consent for telephone tapping.

    SABAH (LIBERAL)

    NOW, IT IS WEDDING RING'S TURN
    Citizens started to sell even their wedding rings to take a bread to their houses for a few days more. Everything is for sale. Before the crisis, there were only second hand cars and flea market. Now, everything can be sold at second hand market, including refrigerators, carpets, washing machines and ovens. Because, citizens started to sell all their goods to stand on their feet. As citizens cannot find anything to sell, they have started to sell their wedding rings, the symbol of their love and family. Necdet Aydin, a jeweler in Gaziosmanpasa district of Istanbul, said, ''people are crying as they are selling their wedding rings.''

    40 OF 100 WORKPLACES CLOSED
    Here is the bad table of small and medium scale enterprises: The profit of the enterprises which was 21 percent three years ago decreased to minus rates. All of the enterprises are in loss. Seven of every ten enterprises reduced the number of the workers to shrink and the enterprises continue to do so. Forty of every 100 enterprises have been closed.

    CUMHURIYET (LEFT)

    CRISIS INCREASE SUICIDES
    Surveys revealed that the number of people who committed suicide due to economic problems is increasing throughout Turkey each day. It was determined that number of suicides increased sharply especially after the crises on January 24, 1980, April 5, 1994 and 1998. Meanwhile, suicides rose 50 percent in 2000 compared to those in 1999.

    GENDARME WANTS INVESTMENT
    A 40-member delegation of businessmen will pay visits to Sirnak, Cizre, Silopi and Habur in Southeastern Anatolia between September 28 and 30 upon invitation of the 23rd Gendarme Border Division Commandership. Members of the executive boards of Istanbul Chamber of Commerce and Istanbul Chamber of Industry will join the visit aimed at searching for new investment and employment opportunities in the region.

    39 TONS OF NEWSPAPERS AND MAGAZINES BURNT
    A report of the Eskisehir-Bilecik Chamber of Doctors evaluated effects of the September 12, 1980 military coup on health services and democracy. According to the report, ''health services in suburbs regressed due to the military coup. 39 tons of newspapers and magazines were burnt. A doctor who was paid 676 U.S. dollars in 1979 is now receiving 370 U.S. dollars. 171 citizens were tortured to death''.

    RADIKAL (LEFT)

    THANK YOU, BOYS!
    The National Basketball Team was defeated by Yugoslavia in the final of 32nd European Men's Basketball Championship. Twelve giant men who recorded the greatest success at national team level in history received standing ovation for almost an hour. Twelve giant men started the game with the support of 13 thousand fans. Turkey led 40-38 at first half. There was great excitement in the second half. The National Team left the championship to Yugoslavia through the end of the fourth quarter as they suffered tiredness and fault problem. The result was Yugoslavia 78 Turkey 69 but the 12 huge men were receiving great applause.

    SCHOOLS IN BLACKOUT
    Millions of students will be obliged to receive education at schools of which water and electricity were cut. Today, 16 million students and 555 thousand teachers are starting a new education year with problems more than those in last year. Thousand of schools whose water and electricity bills were not paid are deprived of water and electricity. Meanwhile, National Education Minister Metin Bostancioglu is still silent about how these problems can be solved.

    TURKEY STARTS ECONOMY ROAD-SHOW
    Turkey will start an intense economic introduction initiative as of today. A delegation comprising representatives of Treasury, Central Bank and Banking Regulation and Suprevision Agency (BRSA) will give the start for the road-show in Los Angeles, the U.S. to inform of the portfolio investors on the Turkish economy. The delegation will continue road-shows until September 20 in important financial centers in the U.S. and Europe.

    TURKIYE (RIGHT)

    BAHCELI INSPIRES HOPE: ''WE WILL OVERCOME EVERY OBSTACLE''
    Nationalist Movement Party (MHP) leader and Deputy Prime Minister Devlet Bahceli said that it is obvious that the economic problems in the country demoralize the citizens but, Bahceli noted, ''it should also be known that the current economic crisis will be overcome as our country takes correct steps and Turkey will re-start to take giant steps forward.''

    GOLD RAIN IN MEDITERRANEAN
    Turkey topped the list of medal winners in the ongoing Mediterranean Games by 26 gold, 10 silver and 9 bronze medals in weight-lifting, wrestling, boxing and swimming events.

    COMPANIES IN DIFFICULT CONDITION
    Real sector is paying the heavy costs of the crisis. Nevzat Pekuysal, the Chairman of Varan Company Group, said, ''there is non-confidence. Not only unemployment increased, but also the companies are suffering.''

    ZAMAN (CONSERVATIVE)

    FORMER SSK DIRECTOR DETAINED
    Three bureaucrats, including former Social Security Agency (SSK) General Director Kemal Oktar, were detained in Ankara within the framework of the operation into corruption in health sector. Oktar, who resigned in 1999, was taken into custody upon the instruction of Izmir State Security Court (DGM) Prosecutor's Office. Dursun Yasar Caliskan, the head of Health Department then and currently the deputy head doctor of SSK Physical Treatment Hospital, and Aytac Kosten, the chairman of one of the departments in SSK, were the other detainees.

    ISTANBUL POLICE MAKE SELF-CRITICISM
    Istanbul Police Department made a autocriticism meeting as it was subject to intensive criticisms after the murder of businessman Uzeyir Garih. High- level security directors who convened under the chairmanship of Istanbul Acting Police Chief Hasan Ozdemir tried to find a response to the question, ''where have we made a mistake?'' The participants said that a mistake was made when investigating the spot while noted that they could not prevent leakage of information to the press.

    [02] ENVIRONMENT MINISTER AYTEKIN LEAVES FOR ROMANIA

    ISTANBUL - Environment Minister Fevzi Aytekin left on Sunday for Romania as the official guest of Romanian Minister of Waters and Environmental Protection, Aurel Constantin Ilie.

    Prior to his departure, Aytekin said that current cooperation in water and environmental protection will be debated and information about the efforts to comply with the European Union (EU) regulations will be exchanged during his contacts.

    Aytekin will sign a cooperation protocol on environmental protection. This agreement foresees cooperation in overcoming sea pollution in the region, exchange of information and experience in initiatives to comply with EU regulations on environment, protection of nature, development of joint programs in line with international and regional agreements signed by two countries, improvement of cooperation in overcoming air and water pollution, home and industrial wastes, and management of hazardous chemicals.

    Environment Minister Aytekin will return to Turkey on September 12.

    [03] FM CEM SAYS TURKEY IS ONE HUNDRED PERCENT RIGHT REGARDING ESDI

    GENVAL - Foreign Minister Ismail Cem said that Turkey was one hundred percent right regarding the European Union (EU) initiative ''European Security and Defense Identity''.

    Holding a press conference late on Sunday, Cem informed reporters on the EU foreign ministers meeting in Genval town near Belgian capital Brussels and his bilateral contacts.

    Cem said that the issue of ESDI formula which was ''independent'' from NATO in regard to command but wanted to make use of all NATO infrastructure had been discussed during his meeting with Louis Michel, the foreign minister of EU Term President Belgium.

    ''We have good intention regarding ESDI issue. We are legally one hundred percent right. We want to join the ESDI but we don't allow ourselves to be put into the position of a naive,'' he said.

    Recalling that the issue had also been discussed at his meeting with British Foreign Minister Jack Straw, Cem said that Turkey wanted harmony and expended efforts for a compromise.

    Noting he had conveyed Turkey's opinions about Cyprus during his meeting with Michel, Cem said that he had told Michel that Turkey felt uneasiness about approaches of particularly western press which showed President Rauf Denktas of the Turkish Republic of Northern Cyprus (TRNC) as intransigent.

    Stressing that the EU should not consider the Cyprus issue superficially, Cem said resumption of Cyprus talks without new factors and new atmosphere would bring more damage than benefit.

    Cem said that U.N. Secretary General's Special Envoy to Cyprus Alvaro de Soto's announcing the date of meeting before getting approval of Denktas and putting forward a new factor contradicted with the good will mission.

    Cem said that Denktas had proposed to have a tete-a-tete meeting with Greek Cypriot leader Glafcos Clerides, and that he had brought the issue to the agenda of the luncheon with the EU foreign ministers.

    Foreign Minister Cem stressed that Greek Cypriot side's EU membership would not bring any benefit to anybody, but this situation would damage the stability in Eastern Mediterranean and the region.

    Recalling that Greek Cypriots' EU membership would not be beneficial to anybody without a common solution, Cem said that nobody should doubt that Turkey would show the necessary reaction to such a development.

    Cem said that they had discussed cooperation in the Balkans during his meeting with his Bulgarian counterpart Solomon Possy.

    Meanwhile, Belgian Foreign Minister Louis Michel said that they had not discussed Turkey at the EU foreign ministers meeting early on Sunday as there had not been a further development in relations with Ankara.

    Michel said that the issue of Turkey would be taken up at the EU General Affairs Council meeting in Luxembourg on October 8.

    [04] TRNC NATIONAL PUBLIC MOVEMENT SAYS EMBARGOES SHOULD BE LIFTED FOR RESUMPTION OF TALKS

    LEFKOSA - The National Public Movement (UHH) of Turkish Republic of Northern Cyprus (TRNC) said on Sunday that new parameters should be accepted and embargoes imposed on Turkish Cypriots for 37 years should be lifted for resumption of talks regarding Cyprus question.

    At the First National Public Confress of the UHH, the group extended full support to the policy followed by TRNC President Rauf Denktas in national cause and decisions taken by TRNC parliament and supported by Turkey.

    The group said that the mentioned parameters foresee the acceptance of realities that there are two independent and sovereign states in the island; that the Greek Cypriot administration does not represent TRNC people and the whole island; and that the Greek Cypriot administration does not have the right and authority to represent TRNC people and whole Cyprus.

    The group said, ''in this context, the illegal Greek Cypriot administration and third sides cannot prove that they have good will for an agreement and cannot give the impression of being trustworthy without lifting inhuman embargoes imposed on the people of TRNC for 37 years.''

    A decision that can be reached should be based on absolute equality, continuation of efficient and de facto guarantee of Turkey, global exchange of goods and property, and solution of the property problem through compensation and regulations which will prevent the return of Greek Cypriots to their earlier settlements, and protection of sensitive Turkish- Greek balance in the island and East Mediterranean, the group noted.

    The group stressed that these main principles will never be abandoned and cannot be made a matter of discussion.

    The group said that unilateral efforts of the Greek Cypriot administration in the path of European Union (EU) membership deepened the disagreement.

    The group asked the Greek Cypriot administration and the EU to freeze these efforts which are exerted without paying attention to Turkey and TRNC's warnings before they ended the final hopes for a reconciliation.

    The status quo of the island will be permanent if the efforts of the Greek Cypriot administration to become an EU member give a result and the Greek Cypriot administration and the EU will be responsible for this, the group noted.

    The group said, ''TRNC has alternatives. Deepening our current close relations with Turkey is ranked at the top of our alternatives.''

    Turkish Cypriot people do not have any confidence in the Greek Cypriots who were the reason of many agonies they suffered and who threw Turkish Cypriots from the partnership republic by gunforce, the group stated and stressed that Turkish Cypriots are not obliged to found a joint state with the Greek Cypriots.

    The group pointed out that a hand for peace will be extended to the Greek Cypriots in case the state and equal sovereign status of Turkish Cypriots are acknowledged.

    The report on Cyprus prepared by Jacques Poos and approved by the European Parliament is nothing but a booklet of propaganda written by Greece and Greek Cypriot side, the group said.

    The group added, ''this so-called report which did not mention the views of Turkish side do not bind Turkish Cypriot people. We definitely reject this report. Approval of such a unilateral report prove prejudice against Turkish Cypriot people and Turkey. This situation also prove how Turkish Cypriot people without a Turkey in the European Union will be unprotected. To this end, EU full membership should be an item of the agenda after a solution and occur simultaneously with Turkey.''

    [05] PROMINENT PERSONALITIES OF TURKISH AND JEWISH SOCIETIES MEET IN NEW YORK

    NEW YORK - Prominent personalities of the Turkish and Jewish societies living in New York, the U.S. and its surroundings met at a dinner jointly organized by Federation of Turkish-American Associations (FTAA) and American Jewish Committee (AJC) Westchester branch.

    Community leaders, diplomats, journalists and other leading members of the two societies attended the dinner at a Turkish restaurant.

    FTAA Chairman Egemen Bagis, AJC Westchester Branch Chairman Harry Paul, Turkish Consul in New York Sedat Onal and Israel's U.N. Permanent Representation Undersecretary Rony Adam were among the guests.

    Speaking at the dinner, Harry Paul said that relations that had roots deep in history between Turks and Israelis had gained a new momentum especially in last three years, adding that their geopolitical interests in their region played a role in this new momentum.

    Recalling that 200 thousand Jews who had escaped from the Spaniard Inquisition 500 years ago found shelter in the Ottoman Empire, Paul stressed that Turkey was the first Muslim country that recognized Israel after its foundation.

    Later, Egemen Bagis said that Jewish people had contributed to social and business life in the Ottoman era, adding, ''Jewish people brought good luck to Ottomans.''

    Stressing that Turkish and Jewish peoples were very close to each other in Turkey and several parts of the world, Bagis thanked the Jewish society in the U.S. for its support to Turkish people after devastating earthquake in 1999.

    [06] TURKEY-EU RELATIONS -VURAL SAYS TURKEY IS NOW AT A JUNCTION

    GAZIANTEP - Prime Ministry European Union (EU) Department Secretary General Volkan Vural said that Turkey reached a fork in relations with the EU, adding, ''it will either open this door of opportunities completely or give in to the rapid progress of the civilization by rolling the shutters down and locking itself up in its house.''

    In a statement to Gaziantep Chamber of Industry's magazine, Vural said Turkey's relations with the EU had entered a new process with the Helsinki Summit in 1999.

    Noting that the candidacy status granted to Turkey at this summit brought concrete full-membership perspective, Vural said 2001 became the year when this perpective changed into steps.

    Recalling that the EU had presented an Accession Partnership Document to Turkey as a requirement of the pre-accession strategy in this new process, Vural stressed that the frame regulations which constituted the second phase of the pre-accession strategy and brought necessary financial sources together had been approved to support this process.

    Recalling that under the light of those developments, Turkey had prepared National Program including the necessary steps for full-membership, Vural said, ''National Program is actually a comprehensive reform project targeting political, economic and administrative fields. It is Turkey's commitment to restructure itself according to the EU and modern civilization norms. It is seen that there is important door of opportunities in front of Turkey to realize a comprehensive reform and integrate to the international system.''

    ''Turkey is now at a junction regarding relations with the EU. It will either open this door of opportunities completely or give in to the rapid progress of the civilization by rolling the shutters down and locking itself up in its house,'' Vural said.

    ''The speed of Turkey's reform process should be in harmony with the EU's enlargement schedule. If Turkey spreads realization of reforms to long term, it may encounter the risk of exclusion from the EU's enlargement process,'' he said.

    Stressing that postponement of integration with the EU to an uncertain date would endanger the national interests in a series of fields from foreign policy to customs union, and cause the Turkish economy to encounter serious risks, Vural said, ''if the rapid progress recorded by other candidate countries in path to EU membership is taken into consideration, it is seen very clearly that Turkey's does not have the luxury of spreading the candidacy process to long term.''

    [07] FIRST INTERNATIONAL TURKISH-GREEK PHYSICS CONFERENCE BEGINS

    BODRUM - First International Turkish-Greek Physics Conference began on Monday in western Bodrum township by the cooperation of Turkish Physics Association and Greek Physics Association.

    The conference will be held in two parts, first part in Bodrum till September 13 and second in Kos island of Greece.

    Professor Erdal Inonu, who attended the opening session of the conference, said that science will play an important role in the promotion of Turkish- Greek friendship.

    Inonu noted that promotion of Turkish-Greek friendship is for the benefit of two countries and nations.

    Harry Kambezidis, the Co-president of International Turkish-Greek Physics Conference, touched on importance that scientists have in rapprochement and friendship of two countries.

    The conference will last for six days. First three days will be held in Bodrum and the last three in Kos island.

    Inonu will deliver a speech in tomorrow's session.

    [08] PRIME MINISTER ECEVIT RECEIVES MEMBERS OF EXECUTIVE BOARD OF TURKISH- AMERICAN BUSINESS COUNCIL

    ANKARA - Prime Minister Bulent Ecevit received on Monday members of the Executive Board of Turkish-American Business Council.

    The meeting which was closed to the press, focused on developments in Turkish economy.

    Members of the delegation told Prime Minister Ecevit that they used to meet once in a year in Washington D.C. in the past, but they decided to increase number of their annual meetings to two.

    Noting that they would hold a meeting in Turkey in November within this framework, members of the delegation invited Prime Minister Ecevit to the meeting.

    [09] PM ECEVIT: ''MR. DENKTAS DOES NOT ESCAPE FROM TALKS''

    ANKARA - Prime Minister Bulent Ecevit said on Monday that Rauf Denktas, the President of the Turkish Republic of Northern Cyprus (TRNC) did not escape from talks, adding that, ''on the contrary, he proposed to hold face to face meeting with Clerides.''

    Ecevit responded to the questions of reporters after participating in oath- taking ceremony of Enis Tunga, the new member of Constitutional Court.

    When recalled the development recorded on Cyprus issue, and when asked, ''Mr. Denktas is kept responsible for not sitting at negotiation table. What kind of an attitude is in question after this?'' Ecevit said, ''any responsibility is not in question. Mr. Denktas does not take decisions on his own. He is in contact with us. Denktas does not escape from talks; on the contrary, he proposed to have a face to face meeting with Clerides. However, Clerides could not show the necessary courage to hold such a meeting. As to the resumption of talks in New York, Denktas put forward some conditions not to leave the talks without a result, and to prevent the talks from being unfruitful. This is an indication of his good will.''

    [10] CHHIBBER SAYS TURKEY COULD STILL ATTRACT FOREIGN CAPITAL

    ANKARA - Ajay Chhibber, the Representative of the World Bank in Turkey, said on Monday that Turkey's economic program included important steps for the next decade, adding that Turkey could still attract foreign capital because the Customs Union agreement was still valid.

    Speaking at a meeting organized at the Treasury Undersecretariat within framework of ''Project for Determination of Administrative Obstacles in Investments'', Chhibber stressed that the government put forward its long- term intention in its economic program, and that the International Monetary Fund (IMF) played an important role during this process.

    Underlining importance of steps to be taken in the long-term, Chhibber stressed that Turkish investors also encountered the same administrative problems.

    Recalling that Turkey got into high amounts of debt in 1990s, Chhibber noted that two of the most significant obstacles in front of foreign capital were macroeconomic instability and administrative obstacles.

    He stressed that foreign capital could provide employment and growth in Turkey.

    Recalling that Turkey signed the Customs Union Agreement with the European Union (EU) in 1994, Chhibber said that Mexico signed the Nafta Agreement with the United States in the same period, and added that Mexico having a foreign trade deficit of 500 million U.S. dollars in those days, reached a foreign trade surplus of 25 thousand U.S. dollars.

    Noting that Turkey expected to become a base of European investors when it signed the Customs Union Agreement, Chhibber said that German and French investors headed towards Portugal, Spain and Italy due to specific reasons.

    He stressed that Turkey could still attract foreign capital because the Customs Union agreement was still valid.

    Underlining importance of timing for the success of the economic program, Chhibber added that both goverment and other institutions had responsibilities to attract foreign capital.

    [11] FOREIGN MINISTER CEM MEETS EU FOREIGN POLICY CHIEF SOLANA

    BRUSSELS - Foreign Minister Ismail Cem on Monday called on the European Union (EU) members not to approach to the Cyprus question with prejudices.

    Cem met Javier Solana, the EU Foreign Policy Chief, nearly an hour.

    Responding to the questions of reporters following the meeting, Cem said they discussed Cyprus, European Security and Defense Identity, Macedonia, and the Middle East.

    Cem pointed out that he had the facility to convey once again Turkey's views on Cyprus and ESDI, adding that he pointed out that the EU member countries should not consider Cyprus issue in a superficial way and with cliches.

    Cem said Turkey-EU problem was not the problem on ESDI issue, recalling that this was a problem between NATO and the EU. He said Turkey expected decisions of NATO Washington Summit to be abided by.

    FM Cem, who completed his contacts with Solana, attended a luncheon with Guenter Verheugen, the EU Commissioner of Enlargement, and Chris Patten, the EU Commission representative.

    Meanwhile, 15 people, who are the supporters of the illegal terrorist DHKP- C organization, chanted slogans during Cem's entrance to the EU Commission building.

    [12] BINAY: ''INFLATION TARGETING WILL SOON BE ADOPTED''

    ANKARA - Central Bank Deputy Governor Sukru Binay has said that all the systems except for inflation targeting had been tried and a medium term inflation target would be announced as part of the inflation targeting system which will soon be adopted.

    He indicated that it was not yet certain whether the consumer or wholesale prices would be used for inflation targeting and works on this subject were continuing at the Central Bank, when he spoke at the 5th International Economy Congress organized by the Middle East Technical University (METU) Economy Research Center in Ankara.

    Binay attended the congress to replace Central Bank Governor Sureyya Serdengecti who was unable to participate due to his busy schedule. Binay briefed the listeners about the Central Bank's money policies.

    Binay said that the fixed currency regime of the past was making the Central Bank vulnerable to foreign shocks because of speculations and that the currency peg system which was adopted end of 1999 dropped interest and inflation rates and maintained a financial balance. He added that Treasury's domestic borrowing costs also decreased and consumption increased in the same period.

    He remarked that production increased, private sector started investments and the economy started to grow. He said that energy prices increased, the Turkish Lira gained value, and import increased. Starting in August of 2000, he said that there was a decrease in the capital flow to Turkey and suspicions occured about the continuability of the fixed currency system which negatively affected the financial structure of the banking system.

    Considering all these developments, Binay said that it would be wrong to define the crisis in Nov. 2000 as a liquidity crisis. ''The November crisis emerged like a liquidity crisis and then it turned into a banking crisis,'' he explained.

    Binay said that there was a consensus about adopting inflation targetting system. ''We tried fixed and floating currency systems, but not the inflation targeting. We suffered from the mistakes in fixed and floating currency systems. We don't want to repeat the same mistakes,'' he asserted.

    He declared that the Central Bank would announce its medium term inflation targeting and it would also announce what kind of tools it will use for which goals. He stressed that transparency would be very important in this system. He explained the advantages of inflation targeting would be to respond quickly to economic shocks and flexibility in the foreign exchange rates.


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