UPDATE - Erdogan to ‘root out’ Gulenists in Turkish businesses

By Bahattin Gonultas

UPDATES WITH ERDOGAN COMMENTS ON BANKING, EDITS THROUGHOUT

ANKARA (AA) - President Recep Tayyip Erdogan on Wednesday vowed to “root out” Gulenists in the business world.

Targeting the supporters of U.S.-based Fetullah Gulen that the government has said are responsible for the July 15 attempted coup, the president said the backers of Gulen’s group -- the Fetullah Terrorist Organization (FETO) -- would be exposed.

“No organization can preserve its power without financial substructure,” he said in a speech to business leaders from his palace in Ankara.

“It is a must for us to clear FETO from the business world, as we root out FETO in the armed forces, judiciary, police and other institutions.”

Erdogan said the nation was determined to stamp out FETO members alongside other terrorist organizations such as the PKK and Daesh, while making no concessions on the principles of democracy or the rule of law.

Gulen, who has lived in self-imposed exile in the U.S. since 1999, is accused of masterminding the coup bid, which left 240 people dead and nearly 2,200 injured.

The president later urged Turkish lenders to reduce interest rates in order to boost growth and promised not to compromise the country’s fiscal discipline. He referred to the recall of bank loans without sufficient reason as “treason”.

Looking forward to a time when interest rates come down and credit is expanded, he said: “No bank will be damaged by lower profit.”

Prior to the speech, the state-run Ziraat Bank cut home loan rates following a Central Bank decision to trim the overnight lending rate to 8.75 percent, bringing Ziraat’s owner-occupier rate to below 1 percent per month.

The government has been a leading critic of the Central Bank’s interest rate policy, accusing it of holding back economic growth.

Erdogan said that he expected the banking sector to act in the spirit of unity currently enveloping the country and promised to act against banks that do not reduce the lending rate.

“We have a disagreement over rate with the banking sector,” he said. “Our banking sector is strong and well capitalized. I will invite all finance sectors to speak with them.”

The president also promised no let-up in the pace of economic reform. “We are continuing our study uninterrupted to strengthen our economy... I believe that Turkey can reach annual exports of $500 billion by 2023,” he said.