Ankara: Trkiye will maintain its economic program and deliver disinflation despite difficult global and geopolitical conditions, Treasury and Finance Minister Mehmet Simsek said Wednesday. Simsek joined Vice President Cevdet Yilmaz and Presidency of Strategy and Budget head Ibrahim Senel at the Presidential Complex for an international media meeting on Trkiye's 2027-2029 Medium-Term Program.
According to Anadolu Agency, Simsek emphasized that price stability is essential for sustainable high growth and better income distribution. He stated that returning to a free-floating exchange rate is desirable once inflation falls, expectations improve, and two-way foreign-exchange flows emerge. 'The only criticism we would accept is that we have been ambitious in our targets. We have, and there is, of course, a cost associated with that. But the commitment is there,' he said.
Simsek highlighted Trkiye's commitment to combating illicit finance, maintaining close cooperation with partners and allies, particularly the US. He stressed that all companies operating in Trkiye must comply fully with national regulations and avoid sanctions. Competent authorities are assessing recent US Treasury announcements and allegations within the rule of law.
The finance minister elaborated on Trkiye's gas contracts with neighbors, emphasizing long-term agreements with Iran and Russia. He assured that payments for natural gas are made through a well-established framework, with the money sitting in a tightly regulated account, used only for items such as food and medicine.
Simsek reiterated that Trkiye is not afraid of returning to a free-floating exchange rate but is focused on getting the conditions right. He dismissed speculation over an imminent change as 'baseless' and noted that the Medium-Term Program assumes a neutral real exchange rate.
Addressing concerns about inflation targets, Simsek rejected claims that the 2027 inflation target was revised upward to permit looser monetary policy. He stated that the program reflects significant changes in energy, agricultural, and other commodity prices, as well as the challenging geopolitical environment.
Simsek also detailed Trkiye's investment in earthquake reconstruction, with $104 billion spent and 621,000 housing units delivered or due for delivery this year. The government plans additional state-funded social housing units to ease housing and rental costs.
Selective credit programs are supporting manufacturers, farmers, small businesses, and technology investments, which Simsek said help preserve employment and create jobs. He concluded by affirming that the ultimate goal of the program is a sustainable high growth rate and better income distribution, ultimately improving the standards of living for Turkish people.