- Title: Turkish finmin vows structural measures after Moody's rating cut
- Date: 28th September 2016
- Summary: ANKARA, TURKEY (SEPTEMBER 27, 2016) (REUTERS) TURKISH FINANCE MINISTER NACI AGBAL (RIGHT), WITH REUTERS REPORTERS AHEAD OF INTERVIEW REPORTERS LISTENING TO AGBAL AGBAL SEATED DURING INTERVIEW WITH REUTERS (SOUNDBITE) (Turkish) TURKISH FINANCE MINISTER, NACI AGBAL, SAYING: "If you ask about our position about Moody's (decision), we will - at the end of the day - take decisive steps to put Turkey in a more positive position. We will put structural reforms on the table, we will establish them and we will improve the quality of institutions." AGBAL'S HANDS DURING INTERVIEW (SOUNDBITE) (Turkish) TURKISH FINANCE MINISTER, NACI AGBAL, SAYING: "We are putting growth at the centre of our medium term plans in 2017 and 2019. On the other hand, we will be fighting inflation and, like Moody's report mentioned, we will be fighting against current account deficit. Employment, also, is very important." CLOSE-UP OF AGBAL'S HANDS (SOUNDBITE) (Turkish) TURKISH FINANCE MINISTER, NACI AGBAL, SAYING: "2016 was a year in which growth percentage decline due to external and internal factors. This period crisis with Russia had a very negative effect, especially on our tourism revenues. There were also negative effects from the coup attempt. So growth percentage will be higher in 2017 than 2016." MORE OF AGBAL GESTURING AGBAL LEAVING FINANCE MINISTRY
- Embargoed: 13th October 2016 13:14
- Keywords: Turkey Finance minister economy Moody's ratings
- Location: ANKARA, TURKEY
- City: ANKARA, TURKEY
- Country: Turkey
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA00151HC8QV
- Aspect Ratio: 16:9
- Story Text: Turkey will introduce measures on issues highlighted by Moody's in a rating downgrade last week, including institutional quality and structural reforms, but growth this year is expected to come in below four percent, Finance Minister Naci Agbal told Reuters on Tuesday (September 27).
Moody's cut its credit rating to "junk" on Friday (September 23), citing worries about the rule of law after a failed coup attempt in July and risks from a slowing economy.
"If you ask about our position about Moody's (decision), we will - at the end of the day - take decisive steps to put Turkey in a more positive position. We will put structural reforms on the table, we will establish them and we will improve the quality of institutions," Agbal said in an interview in Ankara.
Turkey will focus on growth, fighting inflation and tackling its wide current account deficit in the next three years and will take decisive steps against high food prices to drive inflation down, Agbal said.
He warned that global economic developments and domestic issues, including the failed putsch, made a 2016 growth target of 4.5 percent unattainable.
"2016 was a year in which growth percentage decline due to external and internal factors. This period crisis with Russia had a very negative effect, especially on our tourism revenues. There were also negative effects from the coup attempt. So growth percentage will be higher in 2017 than 2016," Bozdag added.
Growth would be less than 4 percent this year, but he forecast that the $720 billion economy would pick up again in 2017 and took a sanguine view of the rating agency's downgrade, saying the issues it raised were already on the government's agenda.
"We are putting growth at the centre of our medium term plans in 2017 and 2019. On the other hand, we will be fighting inflation and, like Moody's report mentioned, we will be fighting against current account deficit. Employment, also, is very important, "the former career bureaucrat, who spent six years as finance ministry undersecretary before entering politics last year, told Reuters.
A series of suicide bombings blamed on Islamic State and Kurdish militants had decimated Turkey's key tourism industry and knocked domestic confidence even before July's coup attempt, in which rogue soldiers commandeered tanks and fighter jets, bombing parliament and killing more than 240 people.
Agbal said that Turkey's long-term growth can only be achieved through an emphasis on structural reform. And at the start of that are democracy, democratic reforms, and the strengthening of the rule of law.
Turkey's economic growth dipped to 3.1 percent in the second quarter from 4.7 percent in the first and is expected to slow further as the fallout from the coup attempt takes its toll. - Copyright Holder: REUTERS
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