Dec 05 2018

A new bill gives Turkish presidency economic emergency rule powers - Para Analiz

A new omnibus bill submitted to the Turkish parliament will delegate economic emergency rule powers to President Recep Tayyip Erdoğan, economic analysis news site Para Analiz said on Wednesday.

The bill stipulates the official establishment of a new body named the “Financial Stability and Development Committee” and delegates powers to the president to decide on economic measures that do not fall under the competence of other institutions within the committee. The member institutions in the committee will be responsible of putting those measures into practice.

The new law gives Erdoğan the power to manage the economy without consulting any other institution, Para Analiz said. The news site asked whether Erdoğan would have the power to decide on interest rates, to issue directives for the restructuring of loans, and change macro economic policy rules once the law was adopted by the parliament. 

Turkish Minister of Treasury and Finance Berat Albayrak chaired the first meeting of the committee last month. It discussed measures to be taken in response to U.S. Federal Reserve’s interest rate hikes.

The heads of all leading economic and financial institutions attended the meeting, including the presidents of the central bank and the Banking Regulation and Supervision Agency.