Turkish minister says debts' ratio to national income to be under 40 pct

Deputy Prime Minister Ali Babacan has said that if any extraordinary development did not occur, debts' ratio to national income could be under 40 percent.

Speaking to private CNBC-e television channel on Thursday, Babacan said that markets were trying to regain a balance following the economic situation in the United States and Europe, adding that there could be some ups and downs in foreign exchange rates while regaining the balance.

It is important to exert efforts to restore long-term stability of Turkish economy, said Babacan, adding that Turkey's fiscal policy and public financial structure was one of the few best ones in Europe.

There is no other country which has such low budget deficit and debt stock, he noted.

Babacan expressed hope that the debts' ratio to national income would be under 40 percent if any extraordinary development did not occur.

Commenting on growth rate of Turkey, Babacan said that it was difficult to predict year-end growth rate, adding that European Central Bank and U.S. Federal Reserve should be followed closely. He said that the growth rate could be 6-7 percent.

When asked of effects of a possible operation in Syria on Turkish economy, Babacan said that while taking steps in regional issues, it was important to have international legal and political legitimacies.

Babacan expressed hope that things would go well in Syria, and Syrian leader Bashar al-Assad would set up a new road map, and take rapid steps.

Turkey's current account posted a net deficit of 45.008 million USD in the first half of 2011, increasing 122.9 percent, when compared to the same period of 2010.

Central Bank stated earlier in the day that current account deficit increased 24.7 billion USD in January-June period of 2011 when compared to the same period of 2010. Current account deficit was 20.2 billion USD in the first half of 2010.


/World Bulletin/