Turkey's economy minister backs C.Bank's interest move

Turkey's economy minister said on Sunday that additional measures could be taken if necessary.

Turkey's economy minister backs C.Bank's interest move

Turkey's economy minister said on Sunday that he supported Turkish Central Bank's recent reduction in interest rates and noted that additional measures could be taken if necessary.

Delivering a statement to Japan's leading economy newspaper Nihon Keizai Shimbun (NIKKEI), Turkish State Minister & Deputy Premier Ali Babacan said that Central Bank's policy interest rate should be low enough not to ease the inflow of short-term capital, but in the meantime, it should be high enough not to cause over warming in domestic demand.

Expressing support for Central Bank's recent interest reductions, Babacan said, "If necessary, we may consider additional measures as well".

Babacan also said that Turkey supported free capital movements.

"We will protect our companies from the effects of the entry and exit of short-term capital," he said.

Commenting on Turkey's plans to build nuclear power plants, Babacan said construction of the country's first nuclear power plant in Akkuyu region had been assigned to the Russian state, while Black Sea province of Sinop had been selected the region to build the second power plant and major Japanese firms like Toshiba were currently negotiating to assume the project.

Babacan noted that nearly 75 percent of Turkey's energy demand depended on import.

"We are in a rush regarding the construction of nuclear power plants due to our rising energy demand parallel to our rapid economic growth. I hope negotiations with Japan will be concluded soon," he said.

Babacan said Turkey's energy demand grew by 7-8 percent in average every year, adding the government's goal was to cover at least 5 percent of the country's total electricity need through nuclear energy by the year 2020.



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Last Mod: 23 Ocak 2011, 14:58
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