Turkey's new economy minister Kemal Dervis sought to ease the fears of restless investors early Tuesday, promising that a new program to help the country out of its economic crisis would be ready soon, reported the Turkish Daily News in its internet edition.
But Dervis' statement had no immediate impact on share prices, which were down nearly six percent when morning trading ended, said the paper. Analysts said that a global decline in share prices only added to concerns that the government was not acting quickly enough in formulating its economic program.
The government, said the paper, was revising the 2001 budget on the basis of a 50 percent year-end wholesale inflation and a 45 percent consumer inflation target, compared to the pre-crisis 10-12 percent.
The government is also reportedly envisaging a two percent contraction in the economy in 2001, in contrast to a four percent growth target announced at the beginning of the year.
The government will allow a 45 percent pay raise for civil servants and around 15-20 percent for public workers, in an effort to eliminate the pay inequality between the two, the daily added.
A possible extension of shortened military service in exchange for a fee, which was reportedly proposed among fund raising instruments, was ruled out by the military on the grounds that it would discourage recruitment for military service.
Meanwhile, the paper said, quoting unnamed official said that Turkey can only overcome the economic crisis by increasing its export to neighboring countries.
“Therefore, the crisis should be seen as an opportunity to improve ties with Iraq, Syria and Iran,” an official said.
Despite Baghdad's complaints about Turkey letting US and British warplanes bomb Iraq, a Turkish trade delegation of 400 people will arrived in Iraq Monday, said the daily.
The delegation, headed by Foreign Trade Undersecretary Kursad Tuzmen, aims at developing economic relations between the two countries. Iraqi Industry Federation Chairman, Ihsan Abdurrazzak, was quoted by the paper as saying last week the Turkish delegation's visit to Iraq was very important in terms of developing trade between the two countries.
Iraqi industrialists want to improve economic ties with Turkey, Abdurrazzak said before Tuzmen's visit.
Another Turkish businessman delegation of 50 people would visit Iraq as well soon, said the paper -- Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
