Deputy President Cevdet Yılmaz stated, “In the perspective of 2026, the goal of the Medium-Term Program (MTP) is to lead our country to single-digit inflation. This framework will be established in unity of purpose between our government and the Central Bank. The most significant expectation from the MTP is an increase in savings rates.”
Deputy President Cevdet Yılmaz met with representatives of the finance industry as part of the preparations for the Medium-Term Program in line with Turkey’s Centennial goals. The meeting took place at the Istanbul Financial Center and was attended by the general managers of member banks of the Turkish Banks Association. Yılmaz delivered an opening speech before the closed-door meeting.
“The goal of the MTP is to achieve single-digit inflation in our country.”
In his assessment, Cevdet Yılmaz stated, “We consider your recommendations and proposals for the medium-term program, as well as the proposals from the financial community, very important and look forward to them. We are building our medium-term program on three pillars. The first one is fiscal discipline, and of course, we have faced a significant challenge in recent times. There’s the earthquake issue. Apart from the one-time effects of the earthquake, we have a perspective of maintaining the budget deficit to GDP ratio in line with European Union standards.”
Yılmaz emphasized that one of the most important expectations from the Medium-Term Program is an increase in savings rates, saying:
“On the other hand, monetary policies will be included in our medium-term program within the framework of our monetary policy. Of course, this concerns our Central Bank, but you know that the main framework will also be included in the medium-term program. In the perspective of 2026, the goal of our medium-term program is to achieve single-digit inflation in our country. This framework will be established in unity of purpose between our government and the Central Bank. Step by step, with patience and the right policies, I sincerely believe we will overcome.”
Yılmaz further explained the third pillar of the medium-term program, which involves structural reforms beyond fiscal and monetary policies:
“Our medium-term program has a third aspect, which is structural reforms. Structural reforms are also very valuable. Structural reforms have two effects: one is tangible medium-term effects, and the other is short-term effects through the expectation channel. We value both of them. Countries that can implement structural reforms are those that can achieve tangible changes in the medium term and strengthen expectations in the short term through effective policies. We believe that the financial sector will provide us with important suggestions and recommendations in all three areas.”
The management of the process is extremely valuable
Cevdet Yılmaz continued by emphasizing their position in a transitional period:
“We are in a transitional process. We are making updates in certain policies. In this transition process, we believe that the health of the system, the proper functioning of the system, should be ahead of the positions of individual actors. The perspective of improving and developing the system together requires being ahead of the position of each individual actor, without losing sight of the good of the country and the common interest of the sector.
I believe that the banking and finance sector has an important infrastructure in this regard. There is also a general coordination structure within the framework of the Banking Association. While respecting the different perspectives of each bank, it is important to manage the process without losing sight of the good of the country and the common interest of the sector. I also want to express my belief that the banking and finance sector will effectively fulfill its role in this transition process.”
They supported the Central Bank’s steps toward simplification
After the closed-door meeting, Yılmaz spoke to the press and stated, “We discussed issues related to the finance and banking sectors here. It was a meeting where we evaluated both the challenges and opportunities in Turkey and the world. I can express the general satisfaction of our colleagues with the updated economic policies. They expressed their support for new approaches in monetary policy and measures taken in fiscal policy. They particularly supported the Central Bank’s steps toward simplifying the regulatory framework and expressed their anticipation for more.”
Source Bloomberg HT