Turkish Minister of Treasury and Finance Mehmet Şimşek said on Monday that his country’s situation is much better than many developing countries, and that the ratio of public debt to national income in Turkey is less than half the emerging market average.
This came during the “Conservatives-Turkey Dialogue” session within the framework of the annual meetings of the Islamic Development Bank held in Riyadh on the occasion of the fiftieth anniversary of its founding.
Şimşek mentioned in his speech that they have established a reliable financial framework to support the fight against inflation in Turkey.
He reported that public finances are improving despite the effects of the earthquake that struck the country in February last year.
He explained that Turkey’s public debt to national income ratio is 29.5 percent, less than half the emerging market average.
Şimşek emphasized that fiscal discipline is one of the basic pillars of Turkey’s medium-term economic program.
The Turkish minister also pointed out that his country has a “very comprehensive structural reform agenda.”
In response to a question about the interest policies of global central banks and emerging markets, Şimşek said, “There are very few developing countries that have a good story at the moment, and Turkey has a great story.”
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He added, “The story is the structural transformation of our country. Turkey’s program aims to ensure price stability, but it is not limited to this alone. There is also a comprehensive structural reform program.”
He continued: “We are determined to invest in human resources, improve the investment environment, and implement public finance reform.”
He also pointed out that the digital transformation is no less important than the green transformation, adding: “We will take the necessary steps regarding this twin transformation.”
He pointed out that the trend of future policies of banks such as the US Federal Reserve or the European Central Bank towards flexibility would improve financial conditions.
Şimşek pointed out that countries such as Turkey want to attract more investments, and pointed to “an increase in investors’ appetite for risk.”
He explained that global financial expansion also means a potentially supportive environment for global growth.
He added, “Strong global growth means a further increase in risk appetite.”
He pointed out that “the rise in risk appetite clearly benefits emerging markets, and Turkey is one of them.”
