Legal assurance for investors, investments to be raised with new law

Published 04.07.2018 00:34

With the realization of the presidential governance system, new steps have been taken to strengthen the perception of foreign investors toward Turkey. Domestic and foreign investors came together with officials from the Presidential Office, Central Bank of Republic of Turkey (CBRT) Governor Murat Çetinkaya, some ministers and economic authorities in Ankara after the elections.

Investors were informed about the economic policies to be implemented with the new government system, the functioning of the new organizational structure, and the five-year investment agenda. Investors were filled in about the "emphasis on stability in the five-year period without elections" and the economic policies to be implemented in the upcoming period.

As the post-election global investment perception strengthens in Turkey, legal regulations will be made where investors will be taken under legal assurance in every respect. Investors are most curious about who will be in the new economy management and how the offices and boards will function. It was emphasized that the actions will be at the forefront of the execution of decisions in the new system, rather than people. While giving information on the steps to improve the investment climate, it was highlighted that the short and long-term two-step economic program will be determined in the new period.

In the new system, which is realized under the leadership of the presidency, a special law is being prepared to raise the legal assurance of investments and investors. Domestic and foreign investors will not have a single legal concern. The Presidential Investment Office, which will take an important role in the organizational structure, will shoulder this legal work. The Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) will also work in connection to this office.

In the presentations made to the investors, it was explained that a new generation of specialized free zones will be established and they will be turned into trade and employment centers. It was also noted that the transactions such as application to state subsidies, permits and incentive certificates will be carried out in an electronic environment and that the efficiency will increase with the simplification of different incentive programs.

It was underlined that stable messages suggesting that nonmarket transactions such as capital controls "will never be applied" were conveyed to the investors. It was expressed with the determination that no changes were foreseen in floating exchange rates and foreign exchange regimes, and that these issues will not be brought up under any circumstances. It was stressed that the independence of the CBRT, which will target inflation, will never be in question. The officials of the central bank gave the message that the firm stance in the monetary policy will be preserved.

In the provinces, investment support offices, which were set up as a mechanism to provide investors with healthy information and facilitate bureaucratic procedures, will be strengthened. The focus will be on transferring funds through capital markets to infrastructural investments, especially those built through public private partnerships. Priority will be given to increasing financial instruments.

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