FURKAN – Investors warn against shuffling economy’s management

Investors warn against shuffling economy’s managementAs Ahmet DavutoIlu was nominated as the ruling Justice and Development Partyand#39s (AK Party)andidate to head the 62nd government of Turkey on Thursday, investors and markets warned about changes to the Cabinet and economic bodies.Following the announcement that incumbent Foreign Minister Ahmet DavutoIlu will likely be voted into the chairmanand#39s position at the partyand#39s congress next week, it is expected that he will be the next prime minister of Turkey.

In addition to the handover of the prime ministry post, the Cabinet is also expected to change. However, investors and market analysts worry about possible changes to economic management, which Deputy Prime Minister Ali Babacan and Finance Minister Mehmet IimIek currently lead.

It has been discussed by economists and market analysts for a long time whether Babacan will keep his post in the next Cabinet. After the latest polemic with ErdoIanand#39s top aiser YiIit Bulut over the negotiations for the sale of Bank Asya, Babacan seems to have been excluded from DavutoIluand#39s new team However investors and the business world do not want a change in the economic team, which is seen as a stability-providing body for the government.

Speaking on Friday at an executivesand#39 meeting of the Independent Industrialists and Businessmenand#39s Association (MUSIAD) in Sivas, the president of the association, Nail Olpak, said that Babacan had been successful during his term Olpak also shared his prediction that Babacan would continue to serve in the Cabinet. Olpak underlined that it is a political decision to nominate somebody to a position however, he clarified that the association hopes to see Babacan in the next cabinet as well.

Istanbul Textile and Apparel Exporters Association (IHKIB) President Hikmet TanrIverdi stated, as reported by the DoIan news agency, that they do not want a change in the management of the economy for the next Cabinet. Congratulating DavutoIlu, he emphasized the stability over the past 10 years and his hopes that it would continue.

Market analyst Selim IIIklar also commented on the possible Cabinet change via a phone interview with Todayand#39s Zaman on Friday. Remembering his last column for the Zaman daily, he explained that the market had been pleased with the performances of Babacan and IimIek and voiced his concerns over the possibility of their absence in the upcoming years.

On Aug. 14, Babacan said that the state-run Ziraat Bank intended to purchase the bank however, Bulut then denied the claim Amid many differences of opinion among Cabinet members over the central bankand#39s interest rate policy, Babacan clarified his views with respect to the autonomous statute of regulatory institutions.

Meanwhile ErdoIan harshly criticized the central bank, and its governor Erdem BaII for allegedly unacceptable decisions on interest rates.

SOURCE: Today’s Zaman