Istanbul Finance Summit debates Turkish economy, Europe

By Elif Ferhan Yesilyurt and Musab Turan

ISTANBUL (AA) – The Turkish economy's resilience and the future of Europe were discussed on the second day of the 7th International Finance Summit in Istanbul on Wednesday.

Ryszard Czarnecki, vice president of the European Parliament said: "Turkey, indeed, has been recording substantial developments in politics, the economy and finance. Turkey's aim to take place among the top 10 economies of the world in 2023 is challenging but also possible.

"Turkey has a great advantage with the potential of its fast-growing population," he added.

Acting Deputy Undersecretary of Turkey's Ministry of Development Hayri Maraslioglu said the country’s mega infrastructure projects provided support not only to domestic business but also international trade.

Praising the Turkish economy for passing the “stress test” of the July 15 coup bid, Maraslioglu added: "It is important to be able to finance investment projects with domestic sources. Therefore, savings should be increased and directed to the long-term instruments."

Acting Deputy Undersecretary of Turkey's Treasury Hayrettin Demircan discussed the official search for new kinds of “sukuk” -- a financial certificate offered as an Islamic bond -- in order to enrich investment funds.

"Turkey's sovereign wealth fund legislation was approved by the parliament. This fund is expected to be used as an instrument to finance investment projects, but this will become clear in time," said Demircan.

Vedat Akgiray, former head of the Capital Markets Board of Turkey and a professor at Bogazici University, criticized international credit agencies, saying:

"If the things that Turkey has met since 2013 happened somewhere else, the consequences would be very traumatic for those countries.

“However Turkey's economy, with its business and banking sector, stayed solid.

“An economy not sinking through such troubles deserves nothing less than the AAA credit rating," he said.

Klaus Kirchhoff, CEO at Kirchhoff Consult AG said: "A lot of investors still want to invest in Turkey, but they want more stability. These investors have money in their pockets and show great interest in Turkey.

“I know there is no such potential in the other European countries. So, political stability is important.

“Providing a reconciliation environment in Turkey is needed more than ever … maintaining peace is to everyone’s benefit as well,” Cornelia Meyer, chair of the London office of LBV Asset Management, said.

Nesrin Sirvan, business development director of JCR Eurasia Ratings, said Turkey featured in many countries’ middle- and long-term plans:

“Turkey’s most significant advantage is its geopolitical position... It is located close to developed industries such as Europe and the country helps their industries to be improved," said Sirvan.

- Refugee crisis, Europe’s future

On the refugee crisis, Czarnecki said: "We need an intense collaboration with both Turkey and the other neighboring countries as this crisis continues.

“In fact, there is a strong necessity for a significant agreement, instead of dialogue, among the partners both inside and outside the EU."

About the future of the EU, Czarnecki stated he believed Brexit, which would be very damaging for the EU, would not be actualized.

Stressing dissolution of EU was a strong assumption, Sant Manukyan, head of Investment International Markets Department with Turkish lender Is Bank, said that a “hit-the-wall effect” will eventually occur in the global economy.

"European countries will have to deal with Syrian immigrant crises more carefully in the upcoming period. The immigrant process coincided with a time when Europe’s economy was deteriorated and its reflection has started to be seen with Brexit,” said Manukyan.

*Muhammed Ali Gurtas and Tuba Sahin contributed to this report from Ankara