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Turkey's growth performance in the new period

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21.04.2017

The question of how Turkey's growth performance will be in 2017 and after has become an important matter of debate after Sunday's referendum. The International Monetary Fund's (IMF) latest global economic outlook report stated that the referendum results would produce political uncertainty, which would also reduce growth in Turkey. I must note that this is a very subjective and unrealistic comment.

The Turkish government had already begun forming the institutional structure of the new era long before the referendum. We will now see that these steps will continue faster as part of a more comprehensive reform program.

The new system will help ensure stability and economic growth in quite a short time and quickly remove the not-so-very-widespread social uneasiness. There is no need to wait until 2019 for the institutions and reforms of the new era, as I have just said, they have already begun coming into force. In this regard, the Credit Guarantee Fund is a very concrete and historic example. This is a giant step toward ending mortgage-based banking, which is the most serious problem in the tutelary economy today. The outdated mortgage-based collateral system has ended in Turkey, but instead a new collateral system has been introduced that turns the project risk into a credit risk.

The Credit Guarantee Fund provided loans of TL 137.7 billion ($37 billion) in a very short period of time. It provided only 2 percent of the total bail, amounting to TL........

© Daily Sabah