Anadolu Agency: News in English, 01-08-17

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ANADOLU AGENCY

NEWS

18 AUGUST 2001 Saturday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] INVITATION FROM PREMIER ECEVIT TO NORWEGIAN COMPOSER

[03] A NEW PARTY TO BE SET UP

[04] BRAZILIAN FOREIGN MINISTRY UNDERSECRETARY CORREA TO VISIT TURKEY

[05] CENTRAL BANK SAYS POSITIVE EFFECTS OF REFORMS TO BE SEEN IN MEDIUM TERM

[06] CENTRAL BANK SAYS ALL EXCHANGE RATE SYSTEMS CAN HAVE BOTH POSITIVE AND NEGATIVE ASPECTS, BUT THE THING THAT MATTERS IS TO HAVE SOUND ECONOMIC BALANCES

[07] NON-INTEREST BUDGETARY SURPLUS IS 8.3 QUADRILLION BY END OF JULY

[08] PRIME MINISTER ECEVIT SAYS SIGNIFICANT STEPS TAKEN IN CONSTRUCTION OF PERMANENT DWELLINGS, EDUCATION AND HEALTH IN TWO YEARS AFTER 17 AUGUST QUAKE

[09] A TOTAL OF 83.6 TRILLION TL AID DISTRIBUTED TO SURVIVORS IN KOCAELI

[10] U.S. TREASURY DEPUTY ASSISTANT SECRETARY RADALET SAYS THERE WILL BE VERY GOOD DEVELOPMENTS IN TURKISH ECONOMY IF GOVERNMENT'S DETERMINATION CONTINUES

[11] PRESIDENTIAL CABINET CHIEF ILDEM SAYS CLAIMS THAT SEZER MADE FAVOURITISM IN CONSTITUTIONAL COURT ARE BASELESS

[12] IMF FOREIGN RELATIONS DIRECTOR DAWSON PRAISES TURKEY'S IMPLEMENTATION OF ECONOMIC PROGRAM

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

Five of the parliamentarians reacted as their names were not put in the main list. Abdullah Gul's being the second name of the party became definite.

DAM AWARD FROM PAKISTAN TO TEKSER WHICH COMPLETED ITS WORK SEVEN MONTHS
BEFORE

Tekser, one of the leading names of construction sector, completed irrigation canal project, worth of 150 million U.S. dollars, before the planned time.

Pakistan proposed Tekser to undertake Ghomal Dam project, worth of 220 million U.S. dollars, which represented Turkey successfully despite the economic crisis in Turkey. Tekser's entering to the project depends on the credit support Eximbank will expend.

MILLIYET (LIBERAL)

SEZER: MEASURES SHOULD BE MODERATE
President Ahmet Necdet Sezer received Israeli Prime Minister Ariel Sharon.

Sezer said he understood Israel's attitude in applying to some measures to provide security of life and property, yet stressed that measures taken against terrorism should be moderate.

The statement that was made after the meeting expressed the pleasure felt over the improvement of relations between Turkey and Israel, stressing that cooperation between the two countries was not against the third countries.

Sezer's statement pointed out that today's conditions in the Middle East could not meet the expectations to provide peace.

SABAH (LIBERAL)

TOBB REACTS TO RUMOURS
The Union of Chambers and Commodity Exchanges (TOBB), which was accused of manipulating the markets by creating demand to the U.S. dollar because of the 100 million U.S. dollars credit which it expended to Eximbank, gave a very strong response to the accusations.

TOBB administration, which issued a statement, pointed out that TOBB collected all its savings so far in Turkish Lira.

CUMHURIYET (LEFT)

The passenger bus plunged into the ravine because of a technical failure in main Bingol-Elazig highway. Those injured were immediately sent to nearby hospitals.

DEATH IN BORDER GATE
One person died in the military zone in Edirne's Ipsala township's Saricaali village when he ignored the ''stop'' warning of a soldier on Thursday. Yusuf Alver, 35, who assisted 26 foreigners to illegally pass the border to Greece was noticed by a soldier named Sedat Basakci. Basakci told Alver to stop. Alver ignored Basakci's warning and was seriosly wounded by the bayonet of Basakci's weapon as he was walking towards him.

Alver died on the road while he was being taken to Ipsala State Hospital.

RADIKAL (LEFT)

Very big donation campaigns were held, and foreign credit commitments followed one after the other.

However, only 2,3 quadrillion of the money could be used to heal the wounds of the quake. Most of the remaining sum are used to heal the wounds of the economic crisis.

U.S. INTERVENES FOR CONSTITUTION
Robert Pearson, the U.S. Ambassador in Ankara, who visited Nejat Arseven, the State Minister respondible for Human Rights, said Turkey should make necessary constitutional change.

Arseven in response defended that there would not be a problem about the constitutional arrangements which the Parliamentary Interparty Compromise Commission agreed on.

Arseven said President Ahmet Necdet Sezer also supported the amendments.

TURKIYE (RIGHT)

WOUNDS OF QUAKE HEALED TO A GREAT EXTEND
Parliament Speaker Omer Izgi said the wound opened by the massive earthquake in Turkey, was healed to a great extend with the understanding of solidarity and unity of powers.

Izgi issued a message and said this quake was one of the biggest disasters which the world witnessed. He said, ''our nation, which felt the sorrow of the quake, worked together with the state to heal the wounds caused by the quake.''

ZAMAN (CONSERVATIVE)

Erdogan said he was against politics based on polemics targeting individuals and personalities, noting that, ''we will keep away from vicious conflicts targeting people. We want to speak about this country from now on.''

[02] INVITATION FROM PREMIER ECEVIT TO NORWEGIAN COMPOSER

Prime Minister Ecevit ordered for the invitation of Nordheim to Turkey whom he listened and admired his composition during his visit to Norway.

Culture Ministry invited the Norwegian composer to Turkey to conduct one of the concerts of Presidential Symphony Orchestra (CSO).

Upon the contacts of CSO Directorate with the Norwegian Embassy, the date of the concert for the famous composer was set as February 14-15, 2002.

As it was afterwards learned that the 70-year old composer is no more acting as conductor, CSO decided to host Nordheim as composer in February 14-15.

[03] A NEW PARTY TO BE SET UP

Olcen told A.A correspondent that they would neither take place in the right nor in the left of the political spectrum.

Olcen pointed out that they wanted to provide full independence of Turkey due to economic, political and administrative means, adding that they would punish all those who involved in corruption. He said, ''we will lift all the implementations limiting organization and belief freedom.''

The founders committee, comprised of 35 people, will start to discuss party regulations on August 18.

[04] BRAZILIAN FOREIGN MINISTRY UNDERSECRETARY CORREA TO VISIT TURKEY

A Foreign Ministry statement noted on Friday that Correa and Foreign Ministry Undersecretary Faruk Logoglu will exchange views about bilateral relations, regional and international issue within the scope of political consultation mechanism between the two countries.

Correa will also meet with State Minister and the Co-Chairman of Turkey- Brazil Joint Economic Commission, State Minister Kemal Dervis and Foreign Trade Deputy Undersecretary Haluk Ayhan.

''Mr. Correa and the accompanying delegation will also participate in a meeting that will be organized by Foreign Economic Relations Council (DEIK) in Istanbul on August 21 and they will discuss with our businessmen the opportunities of improving the commercial and economic relations between Turkey and Brazil and hold meetings with press members and officials of Istanbul Trade Chamber. Turkey and Brazil will also sign an agreement on visa exemption during the visit,'' it was added.

[05] CENTRAL BANK SAYS POSITIVE EFFECTS OF REFORMS TO BE SEEN IN MEDIUM TERM

A statement of the Central Bank, which touched on recent economic developments, said that several reforms have been made for the last two years.

The statement continued, ''this process which began with social security reform continued in 2001 with a number of reforms which were implemented one after the other. These reforms are important because they efficiently change the deteriorated economic structure which is ranked at the top of the reasons which pushed Turkish economy into a series of crises in 1990s. The effects of the reforms, which we guess that will be very positive, will be seen in the medium term.''

''Another important point which has to be stressed in the economic program is the strong stroke on the deteriorated banking sector. The number of public banks have been decreased and their capital was increased to international standards. The short term debts of these banks which led to the deterioration of their balance sheets were zeroed and their managements were totally changed. The system was purified from the problematic banks. The banks that were transferred to the Savings Deposit Insurance Fund (SDIF) is being emerged and sold. Private banks except the public and SDIF- banks are undergoing a process of emerging, emerging with a foreign partner or increasing their capitals,'' the statement said.

The statement also said, ''financial and monetary discipline which is the sine qua non condition of a stability program has been totally ensured. Performances in the first half of the year indicates that the non-interest budgetary surplus which is one of the two determinants of debt dynamic will be at the target level. The developments in the Central Bank balance sheet are in parallel with the agreement reached by the International Monetary Fund (IMF). In other words, a monetary policy which ensures stability is in question. The final shape of the Central Bank law is the guarantee that this policy will be permanent.''

''Under normal conditions, both current economic indicators and the medium and short term expectations should be very positive in a country where the above mentioned economic performances are observed. However, interest rate is very high and the exchange rate is above the balance in Turkey. There is no doubt that negative situation that occured after the economic program had resulted in crisis in 2000 and discussions that have been made, have played an important role in Turkey's current situation. If these are not taken into consideration, it seems that two main reasons caused high interest rates and foreign exchange: Domestic debt stock which was transferred from the former economic program and the floating exchange rate regime.''

''The sustainability of domestic debt stock is not a new matter of discussion. Particularly, the 'borrowing syndromes' that have been often brought to the agenda since late 1990s, is still in the memories of people. When a borrowing program that is shown as a problem is implemented in the markets without any problems, some new 'syndromes' can come to the agenda. There is no doubt that the domestic debt stock has increased in the mentioned time. However, the current debt stock is a debt stock that can be easily mainteaned when we consider the matter in respect of sole economic principles. After the latest statements of the Treasury Undersecretariat, the concerns over the second half of 2001 were eliminated. Also, the Treasury Undersecretariat is enriching its debt management policy and new borrowing means.''

''There may be more than one balance in an economy. The basic indicator of which of these balances will be ensured is the expectations of economic units,'' the statement added.

[06] CENTRAL BANK SAYS ALL EXCHANGE RATE SYSTEMS CAN HAVE BOTH POSITIVE AND NEGATIVE ASPECTS, BUT THE THING THAT MATTERS IS TO HAVE SOUND ECONOMIC BALANCES

Central Bank issued a statement the same day under 17 titles.

Regarding the exchange rate system, Central Bank said that the implementation of the economic policy to date is a clear proof that the economic balances in the country are getting stronger. Central Bank stated that ''many countries in the world gave up their old exchange rate systems and preferred the floating exchange rate system. Moreover, the fixed exchange rate system which was put into practice in 2000 year collapsed before the end of the 18-month economic programme's implementation. It was not practically reasonable to continue implementing the same exchange rate system after that collapse. It is also a reality that similar discussions took place in countries which later adopted the floating exchange rate system after going through economic crises. Certainly playing another game, makes anxious the players, but this will soon end when the players are used to new rules.''

The statement went as follows: ''Central Bank's money and foreign exchange policy is very clear and it is implemented in Turkey as it is the most appropriate one that suits to the conditions of the country and as its theoric principles are very sound. The basic goal of the Central Bank is to stabilize the prices, we don't have any commitment about the level of foreign exchange. The basic tool that will be used by Central Bank to stabilize prices is short term interest rates. There is no other concern than price stability in determination of the interest rates. Central Bank does not also have the policy to sell foreign exchange in order to keep the foreign exchange rate at a certain level. Central Bank can intervene to the exchange rate system for two reasons. Firstly, the Central Bank can sell foreign exchange in order to withdraw the liquidity that will be caused by the usage of the foreign credits obtained from IMF and World Bank by the Treasury on Turkish Lira basis. Secondly, it can both sell and purchase foreign exchange to deal with major exchange rate instabilities. The thing that matters is not to have this second type of intervention continuously in the same direction. Central Bank supplied totally 7 billion dollars between 22 February-31 July to the market by this method. A part of these sales were undertaken to decrease the instability in the money market. Central bank aims to decrease its intervention to the minimum when instabilities disappear and then the exchange rate system will operate under normal conditions.''

Central Bank said that ''It is for sure that the current accounts will give a significant amount of surplus in 2001. Our foreign exchange balance has started to give a surplus nowadays. We believe that the foreign exchange market will start to operate like a normal market soon.''

It was also noted that the Central Bank does not have any commitment about the level of foreign exchange, but it has a commitment for price stability. ''If there is a permanent change of tendency in one of the main signs of inflation that threatens the price stability, Central Bank will certainly take measures,'' it was said.

''Another function of the monetary policy is to illuminate economic units by ''nominal peg'' about inflation expectations, it was noted. ''Inflation targetting is such a kind of a nominal peg. Yet it is not possible to decrease the inflation by only the method of inflation targetting,'' Central Bank added.

[07] NON-INTEREST BUDGETARY SURPLUS IS 8.3 QUADRILLION BY END OF JULY

Oral released a statement in which he said that budgetary revenues were 27 quadrillion 35 trillion TL while the tax revenues were 19 quadrillion 738 trillion TL.

The non-interest expenditures were 18 quadrillion 728 trillion TL, Oral said.

Oral noted that the performances in tax revenues were parallel with the targets of the economic program and that the non-interest budgetary revenues were at the foreseen level.

The non-interest budgetary surplus, which was 7 quadrillion 638 trillion TL by the end of June, reached 8 quadrillion 307 trillion TL by the end of July, Oral stated.

Oral stressed that the year-end non-interest budgetary surplus was targeted as 11.4 quardillion TL, adding that the positive course in the non-interest budgetary surplus, which is an important means to decrease the domestic debt stock, continues.

[08] PRIME MINISTER ECEVIT SAYS SIGNIFICANT STEPS TAKEN IN CONSTRUCTION OF PERMANENT DWELLINGS, EDUCATION AND HEALTH IN TWO YEARS AFTER 17 AUGUST QUAKE

Responding to questions of reporters, Ecevit said that giant steps were taken in construction of permanent dwellings, education and health in two years.

When a reporter said that there are still some insufficiencies in the quake zone and that none of the coalition leaders went to the region and asked if coalition leaders feel disturbed about a reaction, Ecevit said, ''the ministers often visit quake zones and are closely interested in the problems of the region. In fact, some problems occur after every disaster. But, Turkey has marked a success in fighting with quake and taking measures which I think can be shown by only a few countries.''

Ecevit went on saying, ''as I have said the prefabricated huts were completed in a short time. Most of the permanent dwellings have been constructed. The rest will be finished in two or three months. We have recorded many success in education. Also, giant steps have been taken in health. Of course, there may still be some deficiencies, pains and agonies. But, we should not underestimate the success marked by our state and nation together with the foreign aid.''

When a reporter said that 6 billion Turkish liras (TL) was given to those who wanted buy or build a house in the region following the massive earthquake and that this money fell to 3 billion after two economic crisis and asked if a new assistance can be extended to quake survivors, Ecevit said, ''this is certainly the result of the general economic situation in Turkey. Unfortunately, many citizens suffered losses due to economic problems. We launch efforts to overcome these losses. If the citizens would apply earlier for these houses, a result could be taken before the economic crisis. Yet the state continues to launch efforts to help our citizens.''

A reporter asked Ecevit about the report prepared by the Prime Ministry Inspection Board about the corruption claims in Red Crescent, Ecevit said that ''there is an executive board of Red Crescent for the moment and this administration dwells upon the claims put forward about previous administrators. I am not informed about the recent situation.''

Ecevit said that Turkey goes through a serious economic crisis for the last one year, adding yet this period has positively changed the economic and social structure of Turkey.

''It is natural that Turkey will suffer from certain difficulties in the meanwhile. We believe that the chronic problems will be solved soon. I believe that we will overcome the difficulties caused by the economic crisis like we have been able to solve the problems caused by the earthquake disasters,'' Ecevit said.

Ecevit said upon a question about the claims telling the quake aid has been transferred to other sources, that this was not the situation. ''In spite of the economic difficulty, we didn't bring any restriction to materialize the expectations of quake victims,'' he said.

[09] A TOTAL OF 83.6 TRILLION TL AID DISTRIBUTED TO SURVIVORS IN KOCAELI

Keser told a press conference that 119,821 dwellings and 17,328 workplaces were damaged in the earthquake.

Keser said that debris of 5,960 was shifted while the lawsuits concerning 902 buildings continue.

One trillion 711 billion 815 million TL transportation aid was given to 202, 819 people while 102,968 people were donated 83 trillion 648 billion TL accomodation, repair, death, disabled and workplace aid since the eartquake, Keser noted.

Keser stated that 15,534 of 18,120 dwellings planned to be built by the contributions of the World Bank and the Public Works and Housing Ministry have been constructed.

The total financial loss in industry was 3.5 billion U.S. dollar, Keser said, stating that 345 of 1,063 dwellings had suffered serious damages.

Keser pointed out that 196 of 241 schools which were damaged in the earthquake have been repaired.

Thirty-three health institutions were damaged in the earthquake, Keser said, adding that the bed capacity in health institutions fell from 1,922 to 1, 630 after the earthquake.

[10] U.S. TREASURY DEPUTY ASSISTANT SECRETARY RADALET SAYS THERE WILL BE VERY GOOD DEVELOPMENTS IN TURKISH ECONOMY IF GOVERNMENT'S DETERMINATION CONTINUES

Radalet responded to questions of journalists together with U.S. Ambassador to Turkey Robert Pearson after meeting with State Minister Tunca Toskay.

Noting that he had a series of meetings with the government officials about various issues, Radalet said that they had very clear, productive and constructive meetings in Turkey.

Recounting that the Turkish government started to implement a broad reform programme, Radalet said that ''it is really an ambitious programme and the implementation of the programme continues successfully.''

The progress recorded in implementation of the economic programme in the last few months is very encouraging and bright, said Radalet and noted that ''very few countries could have put into practice so many reforms. We appreciate the government for its efforts. The clear statements issued by the government recently is very important for showing its devotion to the economic programme.''

When a reporter asked him if he saw certain impediments in front of the economic programme, Radalet said that he didn't see a certain impediment, adding that the programme is a good one.

''As long as the government's commitment to implement the economic programme continues, this will have a positive effect on the economy,'' Radalet said.

He stressed that the inflation has started to decrease and there is a sign indicating that the high interest rates in the last few weeks started to decrease.

''Very good developments took place in reconstruction of the banking sector and for the banks to serve better to Turkish businessmen and people. Seeing the results of such kind of reforms takes time. Another encouraging development is seen in the export sector and the Turkish firms started to sell their products to other countries. This give hope for the production to increase and the unemployment to decrease,'' he said.

Upon a question about the things he talked in his meeting with Dervis, Radalet said that ''the thing that matters here is the meetings we had with the ministers of all the government. All my meetings with the ministers have been productive. I don't want to make a discrimination by my meeting with Mr. Dervis.''

[11] PRESIDENTIAL CABINET CHIEF ILDEM SAYS CLAIMS THAT SEZER MADE FAVOURITISM IN CONSTITUTIONAL COURT ARE BASELESS

Ildem told a weekly press conference that the news items pointed out that the current Constitutional Court Chairman and some of the members were friends of the president and tried to create an impression that these people were appointed to these offices due to their friendship with the president.

''However, there is only one member that the president directly appointed to the Constitutional Court after he was chosen as the president. Constitutional Court Chairman Mustafa bumin was appointed as the member of the court on November 2, 1992 and Yacin Acargun on May 27, 1991 by Turgut Ozal, one of former presidents. The other members, Ali Huner was appointed to his office on September 22, 1993 and Ertugrul Ersoy on December 8, 1999. It is true that the mentioned people are Sezer's school friends. However, there is not any link between their appointment and their relationship with Sezer,'' Ildem said.

Ildem added, ''Ahmet Akyalcin, who was appointed to the Constitutional Court after Sezer was chosen as the president, was among the three candidates nominated by the Supreme Court of Appeals General Board. We thought that we should make this statement to prevent any mis-evaluations of the nation due to the news items and comments, the sources of which and the targets of which are not known.''

President Ahmet Necdet Sezer complains that his authorities are too many while there are some criticisms that the president undervalues his authorities, Ildem said.

Ildem continued, ''it can be remembered that during Sezer's speeches when he was the Constitutional Court Chairman, he expressed his view that the authorities of the president did not coincide with the parliamentary democratic system in cases of appointment of members of Constitutional Court, Supreme Court of Appeals Chief Prosecutor and Acting Chief Prosecutor and defended that these authorities should be restricted. The views of the president have not changed after he was appointed to this office. He reiterated his views in several platforms, particularly at the new legislation year of the parliament on October 1, 2000.''

''As long as the provisions of the Constitution are valid, the president cannot behave in line with his views about the duties and authorities of the president. In other words, the president will not fulfil the requirements of the oath that he took in front of the parliament as he took over the office which pointed out his responsibility to implement the provisions of the Constitution as long as the authorities which the president thinks are too many continues to take place in the Constitution. It is obvious that our president will not behave illegally.''

[12] IMF FOREIGN RELATIONS DIRECTOR DAWSON PRAISES TURKEY'S IMPLEMENTATION OF ECONOMIC PROGRAM

Speaking at a press conference at IMF headquarters in Washington, D.C. on Friday, Dawson said that Turkey was implementing the economic program very well but drew attention to the lack of confidence in money markets. He also remarked that he expected Turkey to overcome this confidence problem if the economic program is implemented in a determined manner.

Dawson indicated that an IMF delegation headed by IMF Turkey Desk Chief Juha Koahkonnen would come to Turkey in early September to revise the tenth period of the program.

Dawson also said that the IMF Executive Directors Council's approval meeting would take place late September or early October.

The fourth credit tranche which will be given to Turkey is three billion U.S. dollars.

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