Turkey to reveal ‘new economic model’

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Turkish Treasury and Finance Minister Berat Albayrak. (AA)

Turkey’s Treasury and Finance Minister, Berat Albayrak, is expected to announce a new set of economic steps on Friday to curb the country’s high inflation rate.
Turkish Treasury and Finance Minister Berat Albayrak is set to announce on Friday a “framework for a new economic model,” the ministry announced on Thursday.

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

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

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

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

The statement also mentioned the ministry targeted a non-interest surplus of 5 billion Turkish liras ($925 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 speculations, Turkish banks and companies face no problems in terms of currency and liquidity, it said.

“Until the end of the year, our main goal will be to meet these targets by taking action with regard to fiscal policies,” it added.

Source: AA

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