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New economic model for Turkey to be announced on Friday: minister

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Turkish Treasury and Finance Minister Berat Albayrak is set to announce a “framework for a new economic model” on Friday, the ministry has announced, according to the state-run Anadolu news agency.

The new set of economic steps are aimed at securing economic growth of 3-4 percent in 2019 and decreasing inflation to single digits, the ministry said in a press release.

The Turkish economy has recently been suffering from high inflation, which climbed to an annualized 16 percent in June.

“It is expected that the current account deficit will be balanced at around 4 percent,” the ministry said.

The ministry added that it would continue to take steps to cut the budget deficit to around 1.5 percent of the country’s GDP.

“The Treasury’s domestic debt rollover ratio is to be reduced to below 100 percent,” the ministry said.

The ratio, indicating total domestic debt in a specified period divided by domestic debt payments in that period, was 123.4 percent in July, according to the Habertürk daily.

The statement also mentioned the ministry had targeted a non-interest surplus of TL 5 billion ($927.3 million) by the end of 2018 through savings and income-generating measures.

The Turkish banking system is capable of managing financial fluctuations effectively thanks to its strong capital structure and balance sheet, according to the ministry statement.

Contrary to speculation, Turkish banks and companies face no problems in terms of currency and liquidity, it said.

For economists the most threatening sign of a retrogressive Turkish economy is the successive value losses of the Turkish lira, which plunged to 5.46 against the US dollar on Thursday.

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