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May 27, 2012
 
 
 
 
 
 

Government reiterates will to reach stand-by deal with IMF

Prime Minister Erdoğan (L) and IMF Managing Director Dominique Strauss-Kahn make their way to the start of the opening plenary of the 2009 IMF/World Bank annual meetings in İstanbul. Government spokesman and State Minister Cemil Çiçek said on Monday that the government expected to sign a stand-by deal with the IMF.
6 January 2010 / MUSA TAŞPINAR, ANKARA
Government spokesman and State Minister Cemil Çiçek said on Monday that the government expects to sign a stand-by deal with the International Monetary Fund (IMF).

Speaking following a Cabinet meeting in Ankara, Çiçek recalled that talks over a possible deal were under way and that the government expects that these will soon yield “favorable results.”

As he noted that the government is still determined to reach a deal with the IMF, Çiçek said they believed a successful deal with the fund would benefit Turkey’s credit rating in the global financial arena. Underlining that Turkey does not need foreign support and managed to survive a global financial crisis with the help of its own stimulus measures, the minister said, however, that the government still hoped to secure a deal with the fund that would work to its advantage. “The reason why talks over a possible deal have taken so long is that we have been endeavoring to make sure that such a program would benefit the Turkish economy.”

Underlining that Turkey does not need foreign support and managed to survive a global financial crisis with the help of its own stimulus measures, Cemil Çiçek said, however, that the government still hoped to secure a deal with the International Monetary Fund that would work to its advantage

He said the government expects a deal to be finalized soon.

New measures on the way for artisans and craftsmen

The minister said the government planned to improve market conditions for Turkish artisans and craftsmen, with a series of measures in fields such as taxes, employment and loans. There are some 1.9 million artisans and craftsmen in Turkey, and these people constitute the backbone of society, he said, adding that the government is committed to take the necessary steps to provide them a better market atmosphere and ensure healthy competition. The minister noted that the government was working on 21 separate steps to this end.

Cabinet discusses shopping mall regulation

Mentioning anticipated legislation that would bar the construction of large shopping malls in city centers, the minister said the government had not yet made a final decision and was evaluating the issue in depth. Noting that the number of large shopping malls in city centers has increased remarkably in the past few years and that this has benefits as well as disadvantages for various segments of society, he said: “We are aware that this issue needs to be addressed as soon as possible. We are considering implementing some regulations and restrictions to maintain a healthy balance and fair competition in the market.” The minister said the government has met with parties affected by the mushrooming of large shopping malls, as it places a great deal of importance on facilitating a consensus among all parties.

Attracted by promotions, people have increasingly favored shopping malls in recent years. Small shops have long complained that shopping malls have caused a serious decline in their revenue, leaving some dealers bankrupt as they were unable to compete with large malls.

Asked whether the government planned to offer a new solution to former employees of Tekel, Turkey’s alcohol and tobacco monopoly, Çiçek said the government was ready to help the workers, noting that they could still benefit from a program known as Article 4-C, introduced in 2004 to keep workers employed after privatization.

“The decision to privatize the Tekel factories was not made by the Justice and Development Party [AK Party] government but previous ones. Our government introduced 4-C to offer 10 months of employment to former public workers who lost their jobs following the privatization of their workplaces. We are ready to offer the same convenience for Tekel workers. But some people who seek to take advantage of the process hinder a solution.”

Çiçek said an estimated 18,330 people had their employment contracts cancelled as a result of past privatizations, adding, “Some 10,000 were recently hired by separate ministries.”

Tekel employees, who were made redundant due to factory closures in the wake of the monopoly’s privatization, started a protest in Ankara on Dec. 15. Workers wanted the government to find positions for them with other state institutions or enterprises and institute a six-month suspension on the closure of any further Tekel factories. The government, however, offered the workers recruitment within the conditions set out in Article 4-C. In this regard, the workers’ annual term of employment was increased from 10 months to 11 months under the scope of Article 4-C.

 
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