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.”

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.”

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The Turkish Central Bank decided on Thursday to keep the interest rate fixed at 50 percent on repurchase operations for a week.

This came in a statement issued by the Central Bank following a meeting held by the Monetary Policy Committee of the Turkish Central Bank, headed by the Bank’s Governor, Yasar Fatih Kara Khan.

The statement explained that as a result of the meeting, it was decided to fix the interest rate at 50 percent.

He added, “Although the Board of Directors decided to keep the interest rate constant, the cautious stance against rising risks to inflation was reiterated.”

The statement stressed that if the bank expects a “significant and permanent deterioration in inflation, the monetary policy stance will be tightened,” noting that it is closely monitoring the effects of monetary tightening on loans and domestic demand.

The central bank raised the interest rate by 500 basis points to 50 percent during its previous meeting on March 21.

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The Consulate General of Turkey in New York City at the Turkish House on Wednesday organized the “Economy and Politics Talks,” the first event of its kind with the participation of economist Nouriel Roubini.

The discussions were moderated by the Turkish Ministry of Treasury and Finance Attaché Gozde Jezmegul, where topics such as global economic developments, geopolitical tensions, inflation, interest rate expectations, trade relations between the United States and China, emerging markets, and artificial intelligence were discussed.

In his speech, the Turkish Consul General in New York, Reyhan Ozgur, pointed out that Turkey hosts many meetings, events and discussion panels, and that they are happy to hold the first episode of a new series of events called “Economy and Politics Talks.”

Ozgur pointed out that the series of events was launched at a time of political and economic uncertainty, explaining: “We are witnessing unprecedented changes and challenges shaping our world through the emergence of new economic forces and new technologies.”

He stressed the importance of engaging in dialogue and exchanging knowledge and experience in times like these.

He stated that they aim to “develop dialogue on political and economic developments between financial institutions, the private sector, government officials and academia through this event,” and the consul expressed his belief that the discussions that will be held will be useful.

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The Turkish Statistics Authority announced that the consumer price index (inflation) rose by 3.28 percent this November, to 61.98 percent on an annual basis.

This came in data from the Authority on Monday, which showed that, based on the average of the last 12 months, consumer prices rose by 53.40 percent, as well as the prices of local producers by 53.15 percent.

Economists’ expectations indicated a rise in inflation in November by 3.68 percent.

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Turkish President Recep Tayyip Erdogan confirmed that the terrorist attack that took place on Sunday morning in the capital, Ankara, represents “the last breath of terrorism.”

This came in a speech he delivered on Sunday during his participation in the opening of the second legislative year of the 28th session of the Turkish Parliament.

Erdogan said in this regard: “The operation that took place this morning, during which two killers were neutralized as a result of the timely intervention of our security forces, represents the last breath of terrorism.”

He added in this context: “The villains who targeted the safety and security of our citizens did not succeed in achieving their goal, and they will never succeed.”

Erdogan stressed that his country’s forces will continue the struggle with all determination until the last terrorist is eliminated at home or abroad.

Erdogan said that his country wants to eliminate the presence of the terrorist organization (PKK) outside its borders as well.

He added: “We will not allow the terrorist organization to direct politics and obstruct the sacred process of our country.”

He added: “The strategy of protecting our entire southern border with a security strip at least 30 kilometers deep and keeping terrorist activities outside this strip under absolute control is still ongoing.”

He touched on the issue of preparing a new constitution for the country, saying: “The people who defied the weapons of the coup plotters on the night of July 15, 2016 deserve to crown their democratic struggle with a civil constitution.”

He added: “Now we have a new mission and a new opportunity before us, which is to give our country a new, civil constitution, and our primary responsibility is to save Turkey from the current constitution that the administration of the September 12 (1980) coup imposed on our nation 41 years ago.”

He pointed out that the current constitution has been amended more than twenty times until it has become flabby, indicating that it is no longer able to keep pace with modern Turkey.

Erdogan called on all political parties and organizations to participate in preparing the new constitution.

He continued: “Just as the Gulen terrorist organization will not see the light of day again in Turkey, it is also impossible for similar organizations to commit new betrayals.”

In another context, Erdogan said that the European Union should not expect anything from Turkey “if it does not reverse its mistakes, most notably the visa issue” (not lifting it from the Turks).

Regarding the economic situation, Erdogan said: “The consequences of the Russian-Ukrainian war, which upset the balance of the global economy, are evident in different aspects every day.”

He pointed out that inflation rates around the world have reached their highest levels in the past 60 to 70 years, and that there are serious problems in every area from food to energy and from trade to employment.

Erdogan stated that there is no country in the world, including developed countries, that can see the future clearly, indicating that Turkey is inevitably affected by these negatives.

He said: “Our goal is to get our country out of this sensitive period with the least loss and the greatest gain.”

President Erdogan explained that the country’s development strategies through investment, employment, production, exports and current account surplus continue to form the backbone of his government’s economic policy.

He continued: “We should never forget that the success of the Turkish economy increases everyone’s quality of life, and the opposite creates a situation that makes everyone pay the price.”

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Standard & Poor’s International announced on Friday evening that it had raised its outlook on Turkey’s credit rating from “negative” to “stable.”

The agency said in a statement that it confirmed Turkey’s credit rating at “B” and raised its future outlook from “negative” to “stable” due to “policy change.”

The statement indicated that the new economic administration in Turkey raised the interest rate by 21.5 points since June to reach 30 percent in order to combat inflation and reduce the exchange rate, and imposed some indirect taxes to achieve financial balance.

It stated that Turkey’s economy is expected to grow 3.5 percent this year and 2.3 percent next year.

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The Turkish Central Bank announced on Thursday that it raised the interest rate by 500 basis points to 30 percent on repo operations for a week.

This came during a meeting of the Central Bank’s Monetary Policy Committee, headed by the Bank’s Governor, Hafiza Ghaya Arkan, on Thursday.

The Turkish Central Bank confirmed in a statement that “the increase in local and international demand for Turkish lira assets will contribute significantly to price stability.”

It pointed out that tax regulations “have a significant impact on inflation rates due to cost-oriented pressures resulting from wages and exchange rates.”​​​​​​

The statement stressed that “foreign direct investments, improving external financing conditions, the continued increase in foreign reserves, and supporting tourism revenues for the current account will contribute to enhancing price stability.”

It pointed out that “the strong trend in domestic demand and the rise in oil prices is creating additional upward pressures on inflation.”

It stressed that the Monetary Policy Committee “decided to continue the process of monetary tightening in order to control inflation and the deterioration in pricing behavior.”

It also stated that the committee “will continue to make credit and quantitative tightening decisions in addition to increasing interest rates.”

It stressed that the committee will continue to make its decisions within a “transparent and predictable” framework and use all available tools in line with the main goal of “price stability.”

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Data from the Institute of International Finance showed on Wednesday that global debt rose 3.3 percent on an annual basis, or the equivalent of $9.9 trillion, in the second quarter of 2023, reaching a new record level of $307.1 trillion.

The Institute of Finance explained in its quarterly report on global debt that debt rose from the level of $297.2 trillion in the second quarter of 2022.

At the end of the second quarter, global debt was distributed between $57.1 trillion in real estate debt, $90.2 trillion in non-financial entities, $87.3 trillion in government debt, and $71.9 trillion in financial sector debt.

The report explained that high levels of inflation and interest rates suppress bank credit, while markets such as the United States and Japan led this rise.

The report continued: “After seven consecutive quarters of decline, the global debt-to-GDP ratio resumed its upward trajectory in the first half of 2023.”

As interest rates rise and debt levels rise, pushing government interest expenditures higher, domestic debt pressures are expected to increase.

The report finds that the international financial structure is not sufficiently equipped to address unsustainable levels of domestic debt.

The Institute of International Finance stressed the importance of intensified global efforts to reform multilateral development banks to increase climate financing and to accelerate the expansion of environmental, social and governance debt markets.

Successive crises led to an increase in financing needs, with government revenues affected and oil prices falling, which prompted governments and companies to issue debt instruments.

The Institute of International Finance is a global institution that includes more than 470 financial institutions. Its mission is to support the financial industry and risk management. Its membership includes global central banks, major international banks, insurance companies, pension funds, asset managers, and sovereign wealth funds.

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On Wednesday evening, all eyes will turn to the headquarters of the US Federal Reserve to announce the results of its meeting on monetary policy, after the meeting began yesterday, Tuesday, and ends with a press conference by its Chairman, Jerome Powell.

Wall Street analysts estimate that interest rates will remain steady, a decision that, if it happens, would mark the second time in six policy meetings this year that the Fed did not raise interest rates.

Currently, federal funds rates are 5.25 percent – 5.50 percent, which is at the highest level since 2001, according to Fed data.

The Fed will announce its decision and issue quarterly economic forecasts to policymakers by nine o’clock Mecca time.

At its previous meeting last July, the Fed indicated that it would keep interest rates steady and would not make any fundamental changes. But inflation developments last August were worrying.

Consumer price inflation in the United States accelerated to 3.7 percent on an annual basis last August, up from 3.2 percent in the previous July.

The Fed is likely to announce today that it will raise the benchmark federal funds rate at least once this year, with two meetings remaining in November and December.

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Turkish Minister of Treasury and Finance Mehmet Şimşek said that his country will be classified in 2026 among the developed high-income countries as determined by the World Bank.

This came in a speech on Friday during a banquet on the sidelines of the tenth edition of the World Turkish Business Council conference in Istanbul.

Şimşek explained that the size of Turkey’s economy will reach about 1.1 trillion dollars this year.

Regarding combating inflation, he stressed that fiscal and monetary policies will proceed in harmony, adding: “Because combating inflation in countries like ours is not a struggle that can be implemented through monetary policy alone.”

He stressed the determination to combat inflation in order to put Turkey back on a high, sustainable and balanced growth path.

The Turkish Minister of Treasury and Finance added: “We have done this before, and we will do it again.”

On September 6, 2023, Turkish President Recep Tayyip Erdogan revealed the features of the medium-term economic program prepared by his government for the coming period.

He said: “By the end of the medium-term economic program, we will achieve growth exceeding $1.3 trillion, and we will enter the list of high-income countries by increasing the per capita national product to $14,855.”

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