Turkey: The only OECD country that needs no intervention in its banking sector

Today’s Zaman – Turkey’s Economy Minister Ali Babacan said on Wednesday that talks between Turkey and the International Monetary Fund (IMF) over a stand-by agreement are still under way and that some adjustments can be made to a recently announced medium-term economic program if an agreement is reached with the IMF. Delivering a speech at the International Economic Alliance's Global Investment Symposium in New York on the sidelines of the United Nations General Assembly and a G-20 summit in Pittsburg scheduled for September 24-25, Babacan briefed the participants about recent economic developments in Turkey. Babacan talked about the current situation of the Turkish economy, saying it has started to see signs of recovery from the global economic recession. Babacan added that positive growth is expected to take place again by the first quarter of 2010, according to the medium-term economic program. Turkey forecasts a 3.5 percent growth in 2010, while growth in the EU economies is unlikely for the next year. Recalling that Turkey is the only Organization for Economic Cooperation and Development (OECD) member that needs no intervention in its banking sector to overcome the effects of the global crisis, the minister noted that the banking system has remained powerful and resilient to the global shock thanks to a number of measures previously taken. Babacan also mentioned a government project to turn Istanbul into a regional financial center. In this regard, he noted that the upcoming IMF and World Bank annual meetings are scheduled to take place in Istanbul on October 6-7.