Measures ineffective unless they attract foreign investors - Turkey's Sabancı Holding CEO

Mehmet Göçmen, the CEO of Sabancı Holding, said on Friday that economic measures would not be effective unless they attract foreign investment into Turkey, Diken news site reported. 

Turkey’s economy is in the midst of an economic recession with two-straight quarters of negative growth, while the inflation is close to 20 percent.

Turkey’s Minister of Finance and Treasury, Berat Albayrak, early this month disclosed a new economic programme promising to inject 28 billion lira ($4.9 billion) of fresh capital into the country’s state-owned banks.

“As long as there are no foreign funds, no money will enter into your pocket even if you establish the Emlak Bank or other energy funds. The outcome is the same whichever pocket you put non-existing money,” Göçmen said in meeting of the construction sector in Istanbul. 

Emlak Bank, a state-run lender caught in the middle of a financial crisis in the late 1990’s, was re-opened in March as an Islamic bank.

Göçmen said that Turkey should return to the period between 2002 and 2008, when foreigners had waited in queues to invest in the country.