Turkey to form inflation committee, grant loans in economic package

Turkey’s parliament will consider a package of economic measures to help boost growth and slow inflation.

Parliament will debate and vote on the measures, which the government pledged to implement by the end of June in an economic programme announced last month, the Dünya newspaper reported on Wednesday.

The steps include establishing a price stability committee to help slow double-digit inflation. Officials from several government ministries, the central bank and a presidential board responsible for budgetary affairs will sit on the committee, which will operate under the Treasury and Finance Ministry, Dünya said.

The package also contains legislation allowing the government to award loans under a credit guarantee fund to boost employment at companies who are experiencing financial constraints. Businesses may borrow 100,000 liras ($12,200) for each person they hire, up to a ceiling of 500,000 liras for five persons, Dünya said.

The loans will be repaid over two years with a six-month grace period and will carry preferential rates of interest, the newspaper said.

The legislation will also establish a financial stability committee, which will meet on a monthly basis and publish a quarterly report. The committee will monitor and manage financial risk, seek to deepen Turkey’s financial markets and increase savings, Dünya said.

Members of institutions including the central bank, the banking industry watchdog and the capital markets board, as well as officials from the presidential palace and Treasury and Finance Ministry, will sit on the committee, the newspaper said.