Nov 15 2017

Turkey’s economy a 'truck with no brakes' – ex-central bank chief

Turkey’s economy resembles a truck with a burst tyre and no brakes, former central bank governor Durmuş Yılmaz said, referring to the government’s economic model that relies on consumption and a high current account deficit.

The period Turkey is experiencing resembles the process leading up to the financial crisis of 2001, when the country was forced to take emergency money from the International Monetary Fund, Yılmaz said in an interview with Gazete Duvar.

Yılmaz, who served as central bank governor from 2006 to 2011 and is a founding member of the new right-wing Iyi Parti, also said President Recep Tayyip Erdoğan’s leadership style was preventing any change in policy:

There’s one voice making decisions about everything. Therefore, there’s no coordination and, more importantly, nobody is asking ‘how do we fix this’ when mistakes are made.

Yılmaz said the Iyi Parti will change Turkey’s economic model, which relies on foreign loans and capital to finance the current account deficit and Turkish companies to import raw materials, some of which it re-exports. Such a change is not something that can be made overnight, he said.  

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