Deputy Prime Minister Mehmet Şimşek informed foreign investors that the state of emergency following the attempted coup will have limited effects on the Turkish economy, in a teleconference late on Thursday with nearly 1,000 international investors. The deputy prime minister answered questions from companies including by BGC Partners, Credit Suisse, Goldman Sachs, HSBC and JP Morgan. Şimşek said Turkey had experienced a serious coup attempt that was largely quelled through the efforts of the Turkish people.
Şimşek said the government's aim in declaring a state of emergency is not to limit the freedom of the Turkish people, but on the contrary to protect the freedom fought for by those who bravely repelled the attempted coup. Şimşek asserted that the only aim of the government through the three-month state of emergency is to clear state institutions of coup supporters and elements of the so-called "parallel structure," and in doing so, the government will use its power with restraint. Şimşek promised that the state of emergency will not have any effects whatsoever on daily life and the business world, and the government's commitment to the market economy continues.
Şimşek said the operations to clear all public institutions of elements of the so-called "parallel structure" has been underway for some time. The state of emergency enables the government to act rapidly by issuing decrees with the force of law. The opportunity and flexibility to move fast is necessary to clear all elements of the parallel structure from public institutions. Once this is achieved, judicial procedures will start for public officials who will be suspended from their duties; and final decisions will be made for the benefit of the public.
Indicating that the incidents in question were expected to have only short-term and limited effects on the Turkish economy, Şimşek said the market economy continued to operate while Turkish financial assets were still being traded smoothly. Turkey is not expected to make any changes in economic policies. While financial discipline will be a priority, the government will continue to implement their reform agenda in a decisive way, and the necessary steps to increase savings will be taken swiftly.
While the Turkish economy grew by 4.8 percent in the first quarter of 2016, it is expected to grow strongly again in the second quarter, despite some level of weakening. Şimşek says that if a different trend is observed in growth, the government has the financial means to intervene in the situation and is taking all necessary precautions.
Şimşek said it is important for the Turkish government to keep its credit rating at an investible level. The government does not agree with recent assessments by credit rating agencies regarding the weakening of institutional structures. On the contrary, the ministry expects institutions to emerge as stronger from this process. The government is in contact with credit rating agencies to inform them as best as possible. The deputy prime minister said the fact that the attempted coup was averted had strengthened Turkish democracy as well as decreased polarization and tension among the people, adding that the government will continue their operations for the continuity of this recovery in dialogue with the political opposition.