Centre calls on government to help German-Turks save in Turkey

Speaking at a press conference in Ankara, Dr. Faruk Sen laid out a number of measures if implemented immediately that could result in 5 to 10 billion marks being invested in the country. Among the initiatives Sen called for were that that German Turks should be allowed to buy shares in the expected privatization of Turkish Airlines and Turkish Telekom, that the government should allow planned state land sell-offs to be sold at a discount when paid for in cash, and that a solution should be found to the double taxation of profits, both in Turkey and Germany, from Turkish Treasury bonds. Sen also called for interest rates in foreign currency accounts to be increased and for more banking instruments to be introduced that would entice German Turks to send their money home. Some 2 million ethnic Turks live in Germany, most of whom went over in the 1960s as guest workers. Sen said that if German Turks actually saved in Turkey then the government would not have to turn to the International Monetary Fund and the World Bank for funds. Turkey is currently seeking loans from the IMF, World Bank and other international lending agencies in order to finance short-term debt and the restructuring of a seriously indebted state banking sector.

The country was plunged into financial chaos in late February following the floating of the lira, a move forced on the government that subsequently saw the lira plunge by more than 40 per cent to the dollar. Economy Minister Kemal Dervis on Saturday announced an economic package designed to get Turkey out of the crisis that has seen inflation soar and mass lay-offs but details of Dervis's plans will not be known until he concludes talks with IMF and World Bank officials.

(dpa)