May 25 2019

Turkey’s economic bureaucracy finds Albayrak’s new package untimely, unnecessary - DW

This story has been updated by a statement released by Turkey's Presidential Budget office, in the last paragraph.

Foreign investment consultants and the Turkish bureaucracy see the new economic measures unveiled by Treasury and Finance Minister Berat Albayrak on Thursday as a wrong, untimely, and involving unnecessary efforts, Deutsche Welle Turkish reported on Saturday.

The latest package of measures, worth 30 billion liras ($4.9 billion), will provide financing to help importers such as manufacturers, who have seen costs surge during a lira sell-off.

Turkish bureaucrats working in the Presidency’s Strategy and Budget Department told DW that they learned the new measures while watching Albayrak on television.

“The economy bureaucracy, who emphasise that they were not consulted, find the package ‘untimely and unnecessary’. Bureaucrats, who say that the priority should not be a credit expansion through state-run banks, indicate that the priority instead should be monitoring non-performing loans provided by state-run banks,” DW said, without revealing the names of the bureaucrats.

An unnamed official working in the Central Bank of Turkey told DW that the package was not welcomed due to the current situation as many expected different types of measures.

“It is a right step but its timing is problematic. I wish this was done two years ago through Credit Guarantee Fund by prioritising value-added (goods) and exports for the available 200 billion lira ($32.8 billion) resource, then it would have a meaning,” DW quoted the official as saying.

Turkey’s economy slumped into a recession in the second half of last year after a currency crisis peaked in August. The lira dropped 28 percent in 2018 and has fallen a further 13 percent this year.

Wolfango Piccoli, co-president of Teneo Risk, said that Albayrak’s new package was another wrong attempt that would prompt further discussions on Turkey’s credibility.

“What Turkey needs at this moment is not providing more loans, but to implement policies that will ensure investors’ confidence and economic stability,” Piccoli said.

Turkey's Presidential Strategy and Budget Office, in a statement, accused DW's coverage as part of ''negative perception operation'' and prepared ''at a desk''. 

https://www.dw.com/tr/albayrak%C4%B1n-finansman-paketine-yanl%C4%B1%C5%9F-ve-zamans%C4%B1z-ele%C5%9Ftirisi/a-48870373