Tag: Babacan

  • The Canadian Press: Turkey plans pardon for tax evaders to recoup revenue owed to the state

    The Canadian Press: Turkey plans pardon for tax evaders to recoup revenue owed to the state

    ANKARA, Turkey — The Turkish parliament may introduce a tax pardon that would relieve tax evaders of their heavy penalties in an attempt to recover revenue owed to the state.

    If parliament approves the plan, the government will wipe away the hefty interest charged on unpaid taxes or bills and taxpayers will be able to pay off the original amount in smaller installments.

    Deputy Prime Minister Ali Babacan said Monday the pardon would include fines on unpaid taxes, social security premiums, traffic fines, water and other utility bills.

    Babacan declined to say how much revenue the government hopes to regain. He denied news reports that the amount could reach 50 billion Turkish Lira ($35 billion).

    Critics say the move disfavours those who pay their taxes on time.

    via The Canadian Press: Turkey plans pardon for tax evaders to recoup revenue owed to the state.

  • Turkey: Iran sanctions affecting banking decisions

    Turkey: Iran sanctions affecting banking decisions

    By DESMOND BUTLER

    iranian bankingTurkey said Wednesday that U.S. and EU sanctions have led to hesitation by Turkish banks on doing business with Iran. But Turkish Deputy Prime Minister Ali Babacan told reporters in Washington that he expects overall Turkish trade with Iran to increase.

    Babacan that the Turkish government has let Turkish banks make their own decisions in the face of sanctions aimed at isolating Iran from the global financial sector. The sanctions target individuals and institutions deemed to be helping Iran develop its nuclear and missile programs.

    “Turkish banks are hesitating,” he said. “Some of them are doing business with Iran, some are pausing to decide what to do.”

    The U.S. Treasury Department’s point man on Iran sanctions, Stuart Levey, is visiting Turkey and Azerbaijan this week to discuss the sanctions with government officials and business leaders.

    Babacan said that the sanctions were hitting the Iranian economy but doubted that they were making Iran rethink its nuclear program. Turkey has opposed sanctions as ineffective and damaging to the Turkish economy, since they target an important neighbor. Babacan stressed the importance for Turkey of trade with Iran, specially in the energy sector. He pointed out the volume of Turkish exports to Iran is about the same level as exports to the United States.

    Babacan expects that trade with Iran, excluding oil and gas, will grow at a moderate pace. His boss, Turkish Prime Minister Recep Tayyip Erdogan, has said he would like to triple trade volumes in the next five years while still respecting the limits set by United Nations sanctions. That push, along with Turkey’s vote against sanctions in the U.N. Security Council has fed tensions with the West.

    But with a booming economy, Turkey has growing energy needs, particularly for natural gas. It has said it plans to boost domestic consumption of natural gas from Iran and to export Iranian gas to Europe.

    Read more:

  • Turkey, spurning U.S., says companies free to trade with Iran

    Turkey, spurning U.S., says companies free to trade with Iran

    mottaki babacanWASHINGTON – Turkey on Wednesday rebuffed a U.S. effort to persuade it to scale back its trade ties with Iran, despite a persistent U.S. lobbying campaign this week in Washington and Ankara.

    Ali Babacan, Turkey’s deputy foreign minister, told reporters in Washington that Turkish companies will remain “free to make their own decisions” about whether to comply with U.S. and European sanctions aimed at cutting off trade with Iran.

    The sanctions, adopted last summer, were designed to build enough economic pressure on Iran to persuade its leaders to limit its disputed nuclear program. The United States and many other countries believe the program is aimed at obtaining know-how to build nuclear weapons, while Iran insists it seeks only peaceful uses of nuclear energy.

    Turkey is a major trading partner with its neighbor to the east, and its failure to comply with the sanctions is a major threat to their success. Turkey’s Prime Minister Recep Tayyip Erdogan said last month that his country wanted to triple its trade with Iran.

    The Obama administration this week mounted a major effort to bring Turkey in line. The Treasury Department’s point man on Iran sanctions, Stuart Levey, visited Ankara on Wednesday to urge Turkish officials to cooperate in the sanctions effort, even as U.S. officials in Washington offered to broaden U.S.-Turkish trade ties.

    Yet Babacan, a founding member of Turkey’s ruling Justice and Development party, said Turkish businesses would be unwise to break off ties to Iranian firms when many European, Chinese and Russian companies “are still doing quite a big business with Iran and finding open doors.”

    Babacan, though acknowledging that the Iranian economy is coming under “more and more pressure,” said he still doubted whether Iran’s leadership — which had faced decades of sanctions — would fold. “It is very difficult to expect them to move just because they’re under pressure,” he said.

    Turkey receives about one-third of its energy from Iran, and the two-way trade, valued at more than $10 billion, is especially important to impoverished areas along the border with Iran.

    Despite the government’s attitude, the U.S. and European sanctions may have some bite, including for Turkish banks, which risk losing access to the U.S. market if they do business with companies that trade with Iran.

    Turkish Trade Minister Zafer Caglayan complained this month about U.S. pressure on the banks, saying, “We cannot tolerate it.”

    Meanwhile, the Obama administration is also trying to sharpen pressure on Chinese companies, whose behavior is the greatest threat to the sanctions. As other companies cut ties with Iran, Chinese firms appear to be snapping up energy, financial and arms business.

    Philip Crowley, the chief State Department spokesman, said Monday the administration has given China the names of companies it suspects are violating sanctions rules, and have received promises that China will investigate.

    paul.richter@latimes.com

    Source: ctnow

  • US eager to boost trade with Turkey, but not in textiles

    US eager to boost trade with Turkey, but not in textiles

    Economy Minister Ali Babacan speaking at the 29th Annual Conference on US-Turkish relations with Gary Locke (second from left), US Trade Representative Ron Kirk (L).
    Economy Minister Ali Babacan speaking at the 29th Annual Conference on US-Turkish relations with Gary Locke (second from left), US Trade Representative Ron Kirk (L).

    Although the US has a strong desire to develop trade relations with Turkey, participating in a fresh high-level initiative, its determination to facilitate trade in textiles, however, is not very strong.

    A top US trade official said easing customs procedures to allow Turkish textile goods to penetrate the US market at lower tariffs is unlikely despite the US administration’s commitment to high-level dialogue to boost trade.

    “Turkey made a very strong case for what they would like to see happen. We were equally practical in trying to help them understand that this is a matter in which our Congress exercises very strong prerogative,” US Trade Representative (USTR) Ron Kirk said on Tuesday on the sidelines of a ministerial-level meeting as part of American-Turkish Council (ATC) talks.

    The US is trying to protect its own domestic market by enforcing double-digit tariffs on clothing and other textile items. Such a high figure prevents an invasion of Chinese goods, but is much higher than the average US tariff rate of less than 2 percent. The measure, however, frustrates other countries, among them Turkey.

    Kirk said it would be hard for President Barack Obama to persuade Congress to ignore or ease those duties in favor of Turkey, as the United States has done for several poor countries.

    Tuesday’s inaugural meeting of the US-Turkey Framework for Strategic Economic and Commercial Cooperation was co-chaired by Kirk and US Commerce Secretary Gary Locke from the US side, and Economy Minister Ali Babacan and Foreign Trade Minister Zafer Çağlayan from Turkey.

    Turkey a priority market for the US

    In his speech, Locke said Turkey was a priority market for the current US administration, which aims to double US exports to this country. He said the US would undertake two trade missions to Turkey in 2011.

    The two nations pledged to take top-level initiatives to boost trade during President Abdullah Gül’s visit to US President Barack Obama last December. Accordingly, a new US-Turkey Business Council will be established before the end of this year to work on developing trade on 12 key sectors. Furthermore, the two countries are setting up a working group to cooperate on protecting intellectual property rights.

    Turkey is one of the few nations that have a trade deficit with the US as it imported $7.1 billion worth of US goods while exporting only $3.66 billion to the world’s largest economy. Turkey’s exports to the US reached their apex in 2006 with $5.4 billion.

    Çağlayan is aware of the imbalance in the trade figures and hopes that the fresh dialogue with Washington will mark a new era. “Turkey is determined to do as much trade as it can with every country in the world,” he said.

    Babacan added that Turkey has been committed to maintaining “an open economy” with all countries since embarking on economic reforms in the early 2000s. “We are implementing a multidimensional foreign policy and a multidimensional trade policy. We just want to have a high gross domestic product [GDP] for our country … and we know this will flow through more trade and investment,” he said.

    Next year’s meeting in Turkey

    Attendees of the ministerial-level meeting decided to convene again in the coming year, but this time in Turkey. The ministers also gave the final shape to a letter of intent that aims to establish a connection to work together in foreign direct investment (FDI) between the Prime Ministry Investment Support and Development Agency and Invest in America. The letter is expected to be signed sometime this year. Furthermore, the ministers pledged to improve relations between the small and medium-sized enterprises (SMEs) of the two countries.

    Other measures also came out of the ministerial-level meeting. The USTR, for instance, will organize a non-official workshop in Turkey to publicize the standards of the Federal Drug Administration’s (FDA) best production practices.

    Both sides will be better off

    Doug Silliman, chargé d’affaires of the US mission in Turkey, has also confirmed the US’s efforts to create and advance investment and economic opportunities that will in the end make both the US and Turkey better off.

    Delivering a speech at one of the ATC panel discussions, he argued that the US is working to introduce policies to facilitate trade, investment and joint initiatives between Turkish and US companies. Silliman called on the entrepreneurs of both countries to establish partnerships and develop projects. Eventually, it is the responsibility of the private sectors to deepen the economic ties, he noted.

    The first ministerial-level meeting is an indicator of a high-level will and the presence of an intention of the governments of both nations, he said.

    Silliman noted that the six-monthly trade between the US and Turkey in the first half of the year soared by 37 percent over the same period a year ago, adding that, albeit good, it is not enough.

    Speaking at the same panel discussion, Koç Holding Chairman Mustafa Koç also focused on the need to improve economic relations between the two countries. He argued that prioritizing military and strategic interests in US-Turkish relations is not functional. “This doesn’t mean these interests are not important, but a solid economic foundation is a must for a sustainable and stable relationship,” he said.

    21 October 2010, Thursday
    TODAY’S ZAMAN İSTANBUL

  • Turkey Proceeds with its Economic Recovery Plans

    Turkey Proceeds with its Economic Recovery Plans

    Turkey Proceeds with its Economic Recovery Plans

    Publication: Eurasia Daily Monitor Volume: 6 Issue: 174September 23, 2009

    By: Saban Kardas

    On September 16, Turkey’s Economy Minister Ali Babacan revealed the government’s medium term economic plan for 2010-2012, prepared by the state planning agency. Babacan acknowledged that the contraction in growth by the end of the year may reach 6 percent, rather than the previous estimate of 3.6 percent. According to his forecasts, the economy will experience growth rates of 3.5 percent in 2010, 4 percent in 2011 and 5 percent in 2012. The government also expects the budget deficit to reach 62.8 billion TL ($42.9 billion), then starting to fall to 50 billion TL ($33.8 billion) in 2010 and 45.1 billion TL ($30.5 billion) in 2011, and 39.1 billion TL ($26.4 billion) in 2012. Similarly, the current account deficit is also forecast to reach $18 billion. Babacan acknowledged that despite a modest recovery, unemployment is set to remain at around its current rate of 14 percent in 2010, which is well above the pre-crisis rate of 10.8 percent (www.cnnturk.com, www.ntvmsnbc.com, September 16).

    The global financial crisis was a serious blow to the Turkish economy, which led to a drastic decline in production and employment in sectors heavily dependent on exports. Although the government initiated several economic stimulus packages, their effectiveness has proven limited. They slowed the contraction of the economy, but are far from stimulating a sustainable economic recovery. The soaring budget deficit due to the economic crisis has been a growing concern among economists (EDM, August 11).

    Therefore, economists expected the government to focus on taking precautions to address the budget deficit in 2010-2012. In contrast to initial speculation that the government might have set unrealistic targets in terms of growth and fiscal balances, experts evaluating the middle term economic plan argued that it is based on a realistic prognosis of the economic conditions and a pragmatic outlook to address the problems. Rather than expecting an ambitious short term recovery, the government prefers a gradual approach aimed at improving economic conditions (Anadolu Ajansi, Today’s Zaman, September 17).

    Following the announcement of the plan, international credit rating agencies also responded positively. Standard & Poor raised Turkey’s credit rating outlook from negative to stable, while Moody’s upgraded the outlook on Turkey’s Ba3 bond rating from stable to positive (www.ntvmsnbc.com, September 18).

    On the implementation side, one factor that makes economists believe that the plan is realistic is the decision to introduce a “fiscal rule” into public administration starting from 2011. Once it is in place, it is expected to contribute to long term fiscal stability, by setting limitations on public spending. This rule was required by the IMF as part of the loan negotiations with Ankara (EDM, January 29).

    However, the role of the IMF in the implementation of the plan has proven controversial. Ankara was engaged in protracted negotiations for over a year with the IMF in order to secure a loan. Despite the recent announcement of progress in these talks, it remains unclear whether Turkey will eventually sign a stand-by deal. The critics of the AKP’s economic policies argue that an agreement with the IMF is necessary to inject credibility into its economic policies and boost confidence in the market, contributing to a more sustainable recovery.

    However, some analysts believe that the medium term plan indicates that the government might implement the precautions without the IMF, while others speculate that the IMF could remain an option. Babacan also added to the sense of confusion. On the one hand, he said that Turkey will discuss the new medium term plan with the IMF. If both sides achieve consensus, Ankara will prefer to sign a stand-by deal. On the other hand, he maintained that although an IMF loan would help the Turkish economy, the IMF financing was not necessary for the implementation of the plan. He added that the plan was prepared on the assumption that in case an agreement was reached with the IMF, the extra resources would be channeled into the domestic market directly, in order that the banking sector could distribute money for private consumption and investment (www.cnnturk.com, September 16).

    The IMF welcomed the plan and found it realistic, reflecting the impact of the global financial crisis on Turkey. In addition to the fiscal rule, the announcement supported Ankara’s plan to cut the ratio of public debt to GDP. It called on Turkey to adopt supporting policies and structural reforms, including measures to address areas that create spending pressures, so that Ankara might achieve its goal of controlling public debt (www.cnnturk.com, September 17).

    Prime Minister Recep Tayyip Erdogan announced that Turkey had survived the crisis without IMF loans. It could continue its path without IMF assistance and would not accept IMF requirements concerning taxes and spending. Therefore, the future of an IMF deal remains uncertain (Hurriyet Daily News, September 18).

    Another major aspect of the plan is that it does not foresee any major hikes in corporate, income and value-added taxes, which equally motivates the government to restrict IMF involvement. Although there were widespread expectations that the government might opt for tax increases to reduce the budget deficit burden, it refrained from pursuing this policy. This decision partly reflects the government’s desire to limit the effect of the economic recovery plan on consumers and the markets, by avoiding policies that might curb economic activity. The government believes that the Turkish economy could recover quickly based on its own dynamics, as long as it is kept vibrant, once the global economic environment starts to improve.

    One factor that boosts the government’s self-confidence is the condition of the Turkish banking sector. Babacan, therefore, argued that unlike other Western economies where the collapse of the financial institutions triggered the economic crisis, the Turkish banking system remained intact and was in good condition. Consequently, he expects a rather smooth economic recovery, centered on the private sector (www.cnnturk.com, September 16).

    Despite the government’s positive outlook on the Turkish economy’s vibrancy, the implementation of the plan and a sustainable economic recovery will also depend upon developments in the global economy. Moreover, the government’s ability to withstand the spending pressures to be generated by the next general election slated for 2011 will be a major test of its determination to reduce public debt, a core element of Turkey’s medium-term economic plan.

    https://jamestown.org/program/turkey-proceeds-with-its-economic-recovery-plans/

  • Levon Ter-Petrossian’s – Mayday, Mayday

    Levon Ter-Petrossian’s – Mayday, Mayday

    ltp-at-matedaran1May Day is a pagan ritual which marks the end of the colder winter half of the year in the Northern hemisphere, and it has traditionally been an occasion for popular and often raucous celebrations – ‘regardless of the locally prevalent political establishment’. But not for Levon Ter-Petrossian, his Mayday was more akin to the Mayday associated with the emergency code word used internationally as a distress signal by ships and airplanes in radio communications; derived from the French venez m’aider, meaning ‘Come Help Me’; the Mayday used to signal a life-threatening emergency by groups such as police forces, pilots, fire-fighters, and transportation organizations – and LTP.

    Yesterday, LTP’s Armenian national Congress (ANC) liner was visibly in distress, suffering relentless buffeting from an Armenian regime which terrorized and killed itself into office; which runs a state-imposed lawless society, holds democratic opposition supporters in prisons, and bullies and beats correspondents who try to tell the story. LTP has finally been trumped by the ‘Flying Ace’ which Kocharian has for years kept tucked up his sleeve and which Sargsyan now flaunts with his international partners-in-crime; the ace of capitulation – on Karabakh and on Genocide.

    Nevertheless, the regime had prepared well for a potentially massive turnout, which might have been the case. But, according to Levon Zurabyan, vehicles bringing LTP supporters to the meeting from outlying regions were turned back in traditional regime style by security services at the city limits brandishing automatic weapons. In contrast, outgoing vehicles were encouraged to take their Mayday holidaymakers to tend their plots of land in the countryside.

    So LTP had fewer passengers than for previous voyages, with the business class notable in its absence. They are distancing themselves from LTP and jumping off his democracy liner, now looking for a Sargsyan lifeboat, in the hope that after regime cronies have finished pillaging the multi-billion dollar [economic rescue] Genocide /Karabakh ‘Sell-Out’ package, the leftovers will help to rescue their small and medium business enterprises. The three thousand or so economy class passengers left on board were seeking cover in whatever sheltered place they could find, realizing they were doomed to go down with the ship and its captain. Riot police were on display in abundance as usual, with bus loads of reserves waiting in the surrounding streets, to make sure nobody jumps ship.

    The Turkish press was eager to quote the international AFP, which rushed to report on how LTP announced to his 3,500 supporters that he and his Armenian National Congress are “in favor of the soonest settlement of Armenian-Turkish relations and is ready to support all positive steps.” On this occasion, the Armenian press came to rescue, with Onnik Krikorian, one of Armenia’s last ‘independent’ photo-journalists, using his Global Voice to report the truth of the matter and including the following:

    “In a damning indictment of Armenia’s rapprochement with Turkey, opposition leader Levon Ter-Petrosian accused President Serzh Sarkisian on Friday of scuttling U.S. recognition of the Armenian Genocide and gaining nothing in return …… We are left to conclude without the slightest exaggeration, that for the sake of prolonging his rule, Serzh Sarkisian has literally ‘Sold Out’ the Genocide. “His next step will undoubtedly be a ‘Sell-Out’ of Karabakh, after which he will become the first Armenian to win the Nobel Prize.”

    Unfortunately there is now little hope for an LTP rescue effort, a multi-billion dollar carrot, backed by the power of the international propaganda machine, has succeeded with its ‘Weed Revolution’ for Armenia.

    The international community has happily fallen for the Kocharian / Sargsyan ‘Flying Ace’, hailing marvellous Sargsyan achievements with Turkish and Azerbaijani relations. The European Union started the bidding and gambled the virtues of democracy, the rule of law and human rights. But realizing that Sargsyan was not fooled by the bluff, it instructed PACE to throw in the hand, and they joined Sargsyan as co-conspirators.

    America then upped the anti with a billion plus dollar cash WB/IMF bet, a calculated bid to draw the ‘Flying Ace’ and knowing it had a win-win situation. Upping the stakes would either call the Sargsyan bluff, with the US collecting the pot, or US losses would be recouped by Obama reneging on his promise to recognise the Armenian Genocide on the 24th April.

    Moscow put in its half billion dollar bid in typically shrewd Russian style, reminding the Armenian party that in the event of losses, they would be covered by previous Russian / Armenian agreements. Turkey and Azerbaijan stayed in the bidding with promissory notes, watching the major players jockey for position. Then the US threw in its billion dollar hand and Obama reneged on his Genocide promise as planned.

    The players have been at the table for months on end, each ready to back out in return for resolving its problems in the Caucasus. The EU and the US were happy to cut and run to leave the three former Soviet players to finish the game, each hoping that Turkey, which has been picking up strong cards along the way, will not come up with a hand to trump them all.

    Armenia still has a better-than-even chance of raking in the entire multi-billion dollar pot; all it has to do is to call the Turkish Azerbaijani bluffs and pick the right time to throw down its Karabakh card. The Republic will then be endowed with an internationally installed bandit regime, which for many generations to come will dictate life in Armenia – and all for the sake of a treacherous Armenian capitulation on Karabakh, which unfortunately included an even more shameful ‘Sell-Out’ of the Armenian Genocide.

    In typical style, whilst Diaspora Armenians have been lobbying overseas, Armenians in the Republic have been subserviently watching on as this process moves into its final stage. The fifty or so thousand Karabakhis are up in arms, determined to defend their rights in the light of this Kocharian / Sargsyan ‘Sell-Out’. But there is little hope that they will be able to stop the capitulation roller-coaster, when Armenia’s regime unilaterally withdraws its troops from five of the surrounding territories, egged on by Bryza and his Minsk associates and rubber stamped by the EU.

    The tale goes that when the Azerbaijani Defense Minister asked his President if he was prepared to take Karabakh by force, Aliyev answered – “Are you crazy, there are fifty thousand of them”. The Defense Minister answered but we are a country of eight million and our army is several times larger in number than the entire Karabakh population and we have spent billions of dollars on the latest military equipment. Aliyev replied: “But two Karabakhis took over Armenia single-handed and now they own the Republic. Imagine what fifty thousand of them will do to us!”

    After the Sargsyan ‘Sell-Out’, Turkey and the rest of the international community will be pleased that that anecdote is now the reality. Unfortunately, it is the reality with which Armenia now has to live – and Armenia, you can blame absolutely nobody for it – except yourselves.