Turkey to focus on structural reforms - finance minister

Turkey will focus on structural reforms to achieve the target of becoming greater and more powerful, the treasury and finance minister said on Wednesday.

"This transformation and reform process will decisively continue in a four point five-year period with no election," Berat Albayrak said.

Speaking at a news conference to announce the government’s action plan, Albayrak said the financial sector prioritised a new set of structural reforms for 2019.

“Strengthening state-run lenders’ capital structure will be our first step,” he said, noting the Treasury will issue around $5 billion (28 billion Turkish lira) worth of government debt securities to make state banks’ balance sheets robust.

Albayrak said studies in coordination with the banking watchdog and banking association are continuing to support private lenders’ capital structure.

The minister noted that a new individual pension system according to citizens’ income level will be determined in the coming period.

"We give priority to create an effective and healthy saving system, starting from state to individuals, to eliminate fragilities in the economy."

“In the next five years, funds accumulated in the new retirement system will exceed 10 percent of the country’s gross domestic product,” Albayrak said.

He added that Turkey will also take steps in real sector to ensure the healthy working of the financial sector.