With the global markets and investors observing closely, Turkey will unveil its new Medium Term Program (MTP) today. The MTP will include a realistic plan that appropriately identifies current problems and corrects the action plans accordingly. It will also outline measures to prevent the recurrence of existing problems and provide the framework for a transformation of the Turkish economy. Above all, the plan is said to establish a meeting point to converge the government’s economic goals with the perception of the global markets.
As much as the MTP will strive to bring Ankara and the markets in New York and London together, it also aspires to constitute a guideline to facilities the perception of the economy across Turkey.
The guidelines and principles included in the MTP are aimed at changing the productivity approach and pricing behaviors of businesses.
The plan will also highlight realistic macroeconomic goals including the growth rate and inflationary targets and will also include steps to achieve those goals.
Another important aspect of the new program will highlight the steps to be taken with a view to supporting the private sector, especially energy and construction firms, which are financially sensitive due to debts in foreign currency.
In that regard, the plan is expected to outline measures to boost the banking sector’s ability to provide support for the real sector.
In addition to the plans related to the real economy actors and financial corporations, the MTP will elaborate on the topics to increase individual savings as it will deeply dwell on the efficiency of the private pension funds, severance payments, and depth of financial markets.
Since the government primarily focuses on cutting public spending, the MTP will also explain the reforms to cut back expenditures of the government entities within the framework of the tight fiscal discipline.
With the aim of ensuring the success of the government’s target of fiscal tightening, savings and efficiency, an office to analyze costs will be established.
Above all, the performance of the plan will be measurable, as it relies on the principles of transparency and accountability.
Before the announcement of the MTP, Treasury and Finance Minister Berat Albayrak met with the representatives of the Turkish Industry and Business Association (TÜSİAD), Foreign Economic Relations Board (DEİK) and Independent Industrialists and Businessmen Association (MÜSİAD) on Tuesday evening.