Foreign direct investment flowing in to Turkey, Şimşek claims

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A client grabs US dollars banknotes at a foreign exchange office in the centre of Ankara on May 25, 2018. / AFP PHOTO / ADEM ALTAN

Deputy Prime Minister Mehmet Şimşek appeared on pro-government Kanal 7 TV on Sunday, saying funds from global investors have begun to flow into Turkey following meetings last week with money managers in London.

Şimşek stated that Turkey’s foreign debt is around $453 billion, which was 142 percent of gross national income and assured that concerns about monetary policy have been eliminated.

He also provided statistics about Turkey’s debt, according to which the debt of 81 million households totaled some 18 percent of gross national income and private sector debt accounted for 68 percent of it. According to Şimşek, public debt is around 28 percent of gross national income, whereas the world average is 80 percent.

After Şimşek’s London visit, the Turkish lira rose to 4.47 against the US dollar.

Along with Turkish Central Bank Governor Murat Çetinkaya, Şimşek promised global investors that Turkey would speed up structural reforms after the elections on June 24.

According to a Deutsche Welle Turkish service report, economists are expecting another hike in interest rates, which were increased 3 percent by the central bank on May 23, due to tomorrow’s announcement of inflation statistics.

Economists said if the central bank does not increase rates, the Turkish lira could start another series of value losses.

However, Şimşek claimed the Turkish lira’s value was under control.

He also accused opposition parties of populism due to their promises regarding the economy and said the ruling Justice and Development Party’s (AKP) election manifesto only involved a commitment of around TL 30 billion to the economy, which is less than 1 percent of national income.

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