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In his speech at the General Assembly of the Grand National Assembly of Turkey, his ministry and affiliated organizations on the budget for the year 2021, Elvan said that the world is going through a very different period and that the Kovid-19 outbreak has devastating effects. in the global economy.
By stating that the countries have entered into a comprehensive and mandatory struggle in a process that affects many areas such as employment, production, trade, tourism and debt, Elvan stated that the extraordinary conditions experienced led to the emergence of measures that they were not seen in normal times.
Noting that governments have started to implement measures that protect working life, keep businesses alive and prevent supply and demand from collapsing, Elvan claimed that central banks also support economic activity through expansionary monetary policies. In addition to these, Elvan said that international organizations support governments by providing technical and financial opportunities.
Stating that uncertainty still continues despite this struggle, while experiencing a global health crisis that has not been experienced before, Elvan said: “We are facing a sharp contraction in world income and trade, job losses of hundreds millions and a rising global debt. Although the light is seen at the end of the tunnel with the vaccination news, the next period still requires a high level of precision. ” said.
Noting that more than 400 million full-time workforce was lost according to data from the International Labor Organization, Elvan pointed out that the analysis of the International Institute of Finance showed that global debt reached 3.5 times the global product.
Reached what level relative to the national income of the total debt of the countries mentioned Elvan, this proportion in Japan, so 632, 500 percent in the UK, 383 percent in the US, 337 percent in China, even though it was 268 percent in Germany, while in Turkey it was 167 percent.
“We have a debt ratio well below the world average”
When stating that the global debt ratio has increased by 43 percent in the last year in the world, Elvan said that the debt of developed countries has increased by 52 percent in the last year. stating that 26 percent of the developing countries Elven, “last year our growth rate in Turkey is 30 percent borçluluğu. We have a debt ratio well below the world average.” I speak.
Elvan said that global economic activity has started to recover since May with the effect of the closure measures and support policies, but with the new wave experienced in the last quarter of the year, many governments have started to implement some measures again.
Stating that the different financial and conjunctural situations of the countries caused the effects of the crisis and the measures taken to differ, Elvan stated that the scope of the contraction is expected to be much deeper in developed economies that have taken closure measures. integral.
Stating that countries continue to support policies against the second wave, which is stronger than the first wave, Elvan pointed out that especially the expansionary monetary policies of developed countries led to an increase in global liquidity.
On the other hand, Elvan said that he found the recent negotiations on vaccination promising, saying:
We believe that with the introduction of a widely used vaccine or treatment against coronavirus, there will be a rapid recovery in global activity. From this point of view, 2021 is expected to be a period in which 2020 will be offset in global income, trade and employment, with the start of vaccination. However, global supply chains. security, the rapid deterioration of labor markets in the face of disadvantaged groups, the growing importance of technological infrastructure, the fragility of sectoral dependencies, it seems that the post-epidemic period will continue to be at the top of the world economic agenda. “
“We continue to make our economy more durable”
Treasury and Finance Minister Elvan noted that they prepared the budget for 2021 in an environment where the Kovid-19 epidemic had a negative impact on both the economy and life, saying: “Our economy has outperformed with success the shocks to which it has been exposed during the period of our governments. We continue to implement macroeconomic policies designed to guarantee sustainable growth. said.
Turkey’s economy, highlighted that with the market economy based on the competition of the elven tradition, it continued as follows:
“We form our economic policies centered on this understanding. Our goal is to increase employment and increase the well-being of our citizens with sustainable and quality growth in the next period. We will continue to fight inflation with determination, maintaining macroeconomic stability, ensuring the continuity of economic activity despite the uncertainties that the epidemic brings on a global scale, strengthening the investment environment; We will accelerate our new reforms in a predictable and responsible structure. As we have shown many times in the past, we will ensure that our country comes out of the harsh conditions of the world at least. “
“The most important guarantee of confidence is undoubtedly the law”
Lütfi Elvan stressed that the government attaches great importance to judicial reform in terms of further improving the investment environment.
Stating that it is not possible to think of law separately from economics and that trust is a requirement for a well-functioning economic structure, Elvan said that “the most important guarantee of this trust is without doubt the law.” said.
Stating that they started very productive work in line with the same purpose with Justice Minister Abdulhamit Gül, Elvan said: “We will shape legal reforms in a way that strengthens the climate of economic trust and accelerates in close consultation with our stakeholders. We also attach great importance to the opinions of all parties to make our economy stronger and more productive. ” I speak.
In this context, Elvan stated that their meetings with representatives of TOBB, TÜSİAD and MÜSİAD have been extremely beneficial, and that they will meet with other parties, especially merchants and the business world, in the coming days.
Stating that they will advance the economy with all segments of society, Elvan said: “In this context, the opinions of merchants, farmers, industrialists, academics, that is, every member of society is extremely valuable and valuable to us. “We will never neglect the welfare and social justice of our citizens with a human-oriented approach. By focusing on their regulatory role, we will formulate our economic policies within an inclusive, realistic and rational understanding.” He used the expressions.
Elvan claimed that the steps they took in the last month also revealed their future prospects, and the monetary tightening step introduced by the Central Bank was followed by the simplification of the required reserve request. Elvan recalled that all financing began to be done at the one-week repurchase interest rate, which is the main policy tool, and that interest rates for mandatory reserves were applied at the same rates for all sectors.
Noting that following these steps, it was decided to abolish the practice of the asset index as of the end of the year, Elvan stated that banks’ derivatives limits were increased to sell TL in terms of maturities with non-residents.
Elvan indicated that the application of the BRSA value date was terminated, the convenience that the exchange rate be based on the calculation of the capital adequacy index was provided, and an approach that converged with the norms and standards was adopted. international
