Çağlayan, who visited Algeria with a delegation of some 150 businessmen to attend a Turkish-Algerian Business Forum and have talks with Algerian officials, noted in an interview with journalists at the Turkish Embassy residence that they are working on a plan to introduce a new format into Türk Eximbank. Çağlayan explained that Eximbank operates under the authority of Economy Minister and Deputy Prime Minister Ali Babacan, but he said they will consult with Babacan to discuss the fate of Eximbank in the near future. The minister stated that Eximbank's new responsibility will be to issue guarantees to construction, consultancy and engineering firms operating overseas.
Çağlayan said their aim is to increase the annual business volume of the Turkish construction sector to $50 billion. To achieve this goal, he said, the sector will need a minimum of $12.5 billion in letters of guarantee, which should be provided by Eximbank. The bank should support construction and consultancy firms and building material producers in their overseas operations, Çağlayan said, adding that the situation will be brought to the Cabinet's agenda.
With regard to the construction of the world's third largest mosque, which is planned to be built in Algiers, Çağlayan urged Turkish businessmen to participate in the tender for its construction. If firms cannot afford to bid by themselves, then they should establish consortiums to take part in the tender, the minister said, adding that the ministry is ready to extend the necessary support for those businessmen to undertake the construction. The design will be done by a German architectural and engineering firm. The mosque, which will cost around $5 billion, will be built on an area of 20 hectares. Çağlayan noted that eight of the companies accompanying him in his visit to Algeria made $100 million in business deals on the first day of contact and added that this figure is expected to increase two to threefold in the coming days. Algeria is a gateway to Africa, the minister said, adding that they are planning to expand into Niger and Nigeria through Algeria. They are planning to continue their visits to Africa, and a series of visits to South Africa through the end of this month is being organized. This will be followed by trips to other countries in Africa yet to be visited, including Kenya, Congo and Senegal.
Turkey's exports to Algeria are expected to rise to $2 billion by the end of this year, although a free trade agreement with Algeria is unlikely to be signed in the near future due to Algerian plans to first join the World Trade Organization (WTO). However, the minister said, they will still try to reach an agreement to further boost trade between the two countries. Turkey purchases 12 percent of its natural gas from Algeria, and the Algerian energy minister guaranteed the provision of additional natural gas to Turkey in the event of a supply shortage, Çağlayan said. The Turkish Petroleum Corporation (TPAO) has secured the right to bid in a Dec. 20 tender for obtaining a license to explore oil in southern Algeria. The minister noted that their aim is to cooperate with Algeria in oil drilling and production, too .
The minister mentioned Turkey's economic relations with its neighboring countries and said that a trade mission comprising a number of senior businessmen will visit Iraq to improve cooperation between the two countries and that trade with Iran will also be boosted through new projects. Çağlayan drew attention to the decreasing trend in the value of the dollar, saying that it would be disadvantageous for exporters if the exchange rate of the dollar against the Turkish lira falls below 1.5. The minister cited the uncertainty it would create as the primary problem exporters would face in such an event. Businessmen would be reluctant to make agreements as they would be unable to make any forecasts about the future. An exchange rate of over 1.60 would be in favor of exporters, he said.
