Treasury and Finance Minister Şimşek's message in London about a terror-free Türkiye: It offers opportunities for economic development.

Wednesday, July 09, 2025

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LONDON (AA) - NURAN ERKUL - Treasury and Finance Minister Mehmet Şimşek told investors in London that the process of withdrawing from currency-protected deposits has been largely completed, saying, "With reserves increasing since the beginning of May, reserve adequacy has been achieved and the volatility in the Turkish lira has decreased significantly."

According to information obtained by an Anadolu Agency (AA) correspondent, Minister Şimşek met with real sector and financial sector investors during his two-day visit to London. The meetings, which drew large attendance, detailed developments in the economic program and Türkiye's structural transformation vision.

In his messages here, Şimşek pointed out that the implemented economic program has proven its resilience to recent shocks, saying, "The downward trend in inflation continues, and inflation is expected to remain within the Central Bank's forecast range at year-end. The current account deficit has been reduced to sustainable levels, and the ratio of foreign debt to national income and gross foreign financing needs have decreased."

Emphasizing that discipline in public spending has been maintained, Şimşek said , "Although there is a possibility that revenue performance will be slightly below the target envisaged in the Medium-Term Program, the disinflation process continues."

Şimşek stated that the real sector maintains its resilient structure and that sectoral developments are being carefully monitored, and that active industrial policies and policies aimed at green and digital transformation will continue within the framework of structural transformation.

"VULNERABILITIES HAVE DECREASED"

In his assessment to investors, Şimşek emphasized that while vulnerabilities in the economy have diminished and macro-financial stability has strengthened, he said, "In this regard, the process of withdrawing from currency-protected deposits has largely been completed, reserve adequacy has been achieved with reserves increasing since the beginning of May, and the volatility of the Turkish lira has decreased significantly."

Minister Şimşek also provided information about the "Terror-Free Turkey" process during the meetings, stating, "The Terror-Free Turkey process offers opportunities not only for security but also for regional integration and economic development. The Eastern and Southeastern Anatolia regions have the potential to become Türkiye's new growth engines."

Pointing out that Türkiye is a large economy with strong growth potential, Şimşek said:

"With our high value-added in the manufacturing industry relative to per capita income, we surpass most countries. We are the main production base in our region in both the manufacturing and services sectors. Our advanced physical infrastructure, young and dynamic population, and strong regional integration capabilities make Türkiye extremely attractive for foreign direct investment."

As part of his London contacts, Minister Şimşek also met with executives of Turkish companies operating in the UK.