C.Bank advises nation to get indebted in Turkish lira

The governor of Turkey's Central Bank said that the current problem was related with slowing down revival in loan market.

C.Bank advises nation to get indebted in Turkish lira

The governor of Turkey's Central Bank said on Thursday that the current problem was related with slowing down revival in loan market.

Durmus Yilmaz said loan volume was increasing in Turkey due to its strong financial sector.

"Our current problem is related with slowing down revival instead of further improving developments in loan market," Yilmaz said during a businessmen's meeting in Istanbul.

Yilmaz said the measures Central Bank had taken and would take in the future were necessary to maintain financial stability, however they were not enough.

The governor underlined importance of coordination among all authorized regulation and supervision organs, and said support all other concerned authorities would extend to tighten loan supply and to encourage maturity extension in financial system would raise efficiency of monetary policy.

Yilmaz suggested Turkish nation to get indebted in Turkish lira (TL) not foreign currencies if they did not earn in foreign currencies.

The governor said additional measures Turkey had taken recently should be considered a preparation for the new conjuncture they thought to be influential in the world in coming days.

Yilmaz said maintaining stability was the bank's target, whereas he said the current inflation figures indicated that the developments were in line with the medium-term targets.

Turkey thought it would take some time to reach manufacturing industry capacity utilization figures before the global crisis as the recovery in Turkey's export market would be slower than the global economy, Yilmaz said.

"However, the world was changing rapidly and particularly there were some problems in commodity prices. Therefore, we need to monitor developments closely and carefully," he said.

Yilmaz said Turkey had got out of crisis by the end of the second quarter in 2010, and what Turkey should do from now on was to consolidate its acquisitions without making concessions of the fiscal policy.

"However, there are some problems around us, particularly Europe has a serious debt problem and we are making a great deal of our exports to Europe," Yilmaz said.

Yilmaz said developments in Europe could affect Turkey and therefore Turkey needed to monitor developments there carefully.

The governor said Turkey had recently made decisions and taken some measures against possible problems that might occur in the future.

Yilmaz said what the bank should do was to raise confidence in the national currency, and the target could be achieved by taking inflation under control and preserving the purchasing power of the currency.

The central bank governor said Turkey had become an investible country, however international rating organizations had not upgraded Turkey's rating since they had concerns over the current (accounts) deficit.

Yilmaz said the current deficit forecast in the medium-term program was sustainable.

If USD climbed over 1.6 TL and oil prices rose to 110-120 USD, natural gas, oil, and transportation prices would be affected, Yilmaz also said.


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Last Mod: 13 Ocak 2011, 17:45
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