Turkey's PM denies reports on Saudi Arabia fund

Turkish prime minister rejected recent news published by the media claiming that 15 billion USD received from Saudi Arabia.

Turkey's PM denies reports on Saudi Arabia fund

Turkish prime minister said on Thursday that recent news published by the media claiming that 15 billion USD received from Saudi Arabia caused an increase in portfolio investments and deposits in Turkey were totally wrong.

Replying to questions at a press conference held after the "Sixth Meeting of the Investment Advisory Council of Turkey", Turkish Prime Minister Recep Tayyip Erdogan commented on several news stories claiming that Turkey had overcome the crisis thanks to a substantial amount of money it received from Saudi Arabia.

"Several press organs claimed that Turkey received 15 billion USD from Saudi Arabia and this money caused an increase in portfolio investments and deposits. These allegations are totally wrong and unfounded. Please do not give them any credit," Erdogan said.

Pointing to the news stating "monthly increase in deposits at banks broke a record with 10 percent, amounting to 23.5 billion Turkish liras, in May 2006", Erdogan said such deposits were the savings of residents of Turkey.

"The increase actually stemmed from the change in foreign exchange rates in May, 2006. Central Bank has also delivered the necessary statements on the issue," he added.

Commenting on today's meeting of the Investment Advisory Council of Turkey as well, the Turkish prime minister said members of the council expressed their appreciation over the government's successful activities improving the investment environment.

Erdogan said the council members also confirmed Turkey's improving economic structure and they reiterated that Turkey was among the countries which could manage global fluctuations in the best way thanks to its government's decisive policies.

"Different league"


The Sixth Meeting of the Investment Advisory Council of Turkey ended in Istanbul on Thursday.

Speaking at a press conference held after the meeting, International Monetary Fund's (IMF) Managing Director Dominique Strauss-Kahn said Turkey would become one of the world's most important economies in the future.

Strauss-Kahn said Turkey could proceed in the right direction and play in a different league if it adopted "international standards".

The IMF head also said Turkey had managed the global economic crisis well since the beginning, adding Turkish economy had a strong structure at the moment.

Noting it was now time for recovery, Strauss-Kahn said IMF would continue to follow the developments on Turkey's current account deficit and noted that implementation of fiscal order was of great importance.

Upon the closure of the Investment Advisory Council meeting, a final declaration was released.

The declaration said new reforms should be implemented in the investment environment in order to increase Turkey's productivity and protect its competitive power in global markets.

The document also expressed the council's support for the government's updating the reform program on the investment environment in line with new global economic conditions and its sustaining a strong and stable growth period based on private sector.

The Sixth Meeting of the Investment Advisory Council of Turkey brought together executives of giant global companies in Istanbul.

Chairmen, chief executive officers or deputy chairmen of 18 giant companies from around the world converged to Istanbul for the gathering.

IMF's Managing Director Dominique Strauss-Kahn and World Bank's Vice President Philippe Le Houerou were among the participants.

Heads of leading Turkish business organizations, such as Turkish Industrialists' and Businessmen's Association (TUSIAD), the Union of Chambers and Commodity Exchanges of Turkey (TOBB), Turkish Exporters' Assembly (TIM) and International Investors' Association of Turkey (YASED) also attended the meeting.


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Last Mod: 11 Haziran 2010, 15:45
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