IMF chief praises Turkey's role in fund

May 11, 2012, Friday/ 20:38:00

IMF Managing Director Christine Lagarde has praised Turkey's role in the fund as well as in the Group of Twenty on Friday.

"I would like to emphasize that the IMF very much values the constructive and successful relationship between the Fund and Turkey, and we appreciate the important role Turkey plays both in the IMF and in the Group of Twenty.

We cooperate in many areas, and look forward to our continuing dialogue," Lagarde said in a press release on Friday a day after she wrapped up her visit to İstanbul, where she met with the Turkish officials and attended the 7th Investment Advisory Council.

Lagarde said she offered her congratulations to Turkish Prime Minister Recep Tayyip Erdogan and his colleagues on the reforms and achievements of the last ten years that have led to macroeconomic stability and enabled a major transformation of the Turkish economy.

"The economy is now at a critical juncture. Economic growth is projected to decelerate this year. The deceleration in growth has its benefits, allowing a reduction in the current account deficit and inflation, two areas which require special attention," Lagarde said in the press release.

 Lagarde said IMF agreed with Turkish authorities that it was important to focus more on increasing domestic savings to reduce the vulnerabilities that could come from short-term capital inflows, adding that she welcomed the Turkish government's recent initiatives to increase private savings, including through the reform of private pensions.

"At the Investment Advisory Council meeting, I participated in discussions about how to increase further Turkey's attractiveness as a major investment destination. The IMF contributes in this area through our ongoing policy dialogue with the authorities," Lagarde said.

The council’s final declaration said Turkey’s economic resurgence is impressive and that the council appreciates Turkish government’s steps to maintain its competitiveness in the face of global economic fluctuations.

Coca Cola Company chief of the Executive Board Muhtar Kent read the declaration in a news conference where Deputy Prime Minister Ali Babacan, Economy Minister Zafer Çağlayan, Finance Minister Mehmet Şimşek attended.