Deputy Prime Minister Ali Babacan has said that participation banking and lease certificates are real instruments of trade and investment, and that, since they are not based on "making money from money," they spread the risk in times of crisis and volatility. He also said that the IMF has announced that it will be organizing three seminars on Islamic banking this year to introduce its methods and advantages to more people.
Babacan also noted that various ministers, some of whom are Christian democrat politicians who took the floor during the meetings, also stated that Islamic banking and funding methods should be integrated into local economies. Speaking at the "Transformation of Global Governance" of the T20, which is formed by think tanks from G20 countries, Babacan announced that the first meeting under Turkey's presidency would be at the meeting of energy ministers of G20 countries.
Babacan stated that any kind of investment is beneficial for the country and that infrastructure investments are the most valuable type of investments for the economy. "Therefore, such investments should be prioritized and supported," added Babacan.
Babacan said that the global economy has now entered a negative yield period, especially due to resolutions by the European Central Bank, and that national funds need long-term investment instruments with reasonable yield and long-term predictability. He also underlined that while insurance and reinsurance companies have high asset amounts, these instruments currently have very low yields. Babacan said that they will strive to increase partnerships and cooperation between international associations, such as the World Bank, with public and private sectors and that they have requested a standard accreditation mechanism to be established by the World Bank for inspecting the compatibility of projects with the related standards. He noted that such standardization would also improve securitization.
Babacan highlighted the importance of asset-based funding and said he was glad to hear many ministers and chairmen of various central banks underline the importance of asset-based funding.
'G20 important for Turkey's image'
This year's G20 summit in Turkey will have vital importance for the country's image, Turkey's deputy prime minister said yesterday. "The way that international media organizations have approached Turkey for the last one or two years has not been positive," said the Deputy Prime Minister in charge of economy Ali Babacan, speaking in Istanbul.
The T20 event is being held after a two-day meeting of G20 finance ministers and central bank governors in Istanbul. The two-day summit was held amid major doubts over sluggish global growth, more volatile currencies and deflationary pressures on some advanced economies.
Claiming that there were not many news articles about Turkey in the international media and when they did appear they were mostly negative, Babacan said, "To fix this, the G20 and T20 efforts are very important.
"If we can propound a good performance, we can discern huge benefits from this," he said, adding, "Most importantly Turkey has an important contribution to make in solving the world economic crisis." Babacan said that a group representing 85 percent of the world's economies had come to Istanbul.
"Finance ministers will come together [in Turkey] four times this year," Babacan said, adding that energy ministers will also meet here collectively for the first time under G20 meetings. "Our main expectation from the T20 is to produce new ideas, new politics and new projects," he said. The T20 was formed in 2012 in Mexico just before the Mexican presidency of the G20. Babacan said that of importance to Turkey's G20 presidency was its desire to bring forward underrepresented "low-income developing countries'" agendas to G20 meetings. The G20 group has made more than 1,000 commitments, as part of investment strategies to boost global GDP by 2 percent and to tackle unemployment.