Rejecting IMF After the Motion

The same way it was no doomsday when the motion was rejected, the parliament should show the same courage for IMF program, said economist Mustafa Sonmez: Turkish economys recovery depends on regulations on the debt program and the interest spending.

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"The money and stock markets did not plunge because the parliament did not approve basing tens of thousands of U.S. troops in Turkey," said economist Mustafa Sonmez.

"On the contrary, the people felt relieved. The public should force the government to reject the International Monetary Fund (IMF)-backed economic program and the foreign debt," he added.

"The austerity measures announced Monday will not help Turkey's economy recover even if IMF grants a loan to the country," Sonmez told Bianet.

The fact that the austerity and revenue-increasing measures will mostly hurt the workers and consumers "can be thought as a punishment to those who objected the motion," Sonmez said.

He drew attention that there were no measures towards the 66 quadrillion Turkish lira (USD 40 billion) interest payment.

"Be courageous against the IMF and the debt calendar"

These are the main issues Sonmez addressed:

* The main problem in economics is that the government, instead of dealing with the country's debts and the interests payments, is trying to save the day with such measures on the austerity package announced Monday.

* The economy was not hurt too much because the motion was rejected. On the contrary, the people were relieved because this was a decision against war.

* Even if Turkey receives a loan from the IMF, the economy will not recover before changes are made to the dept payment calendar and measures are taken for the interest rates. It should not be forgotten that an important portion of the money IMF grants Turkey is being used to rehabilitate bankrupt banks.

* Decreasing current spending or investments will not help the economy recover. Even the association of industrialists and businessmen, which represents the small and middle sized businesses and which supports the ruling Justice and Development Party (AKP), wants the foreign debt to be spread over a longer period of time.

* The same way it was no doomsday when the motion was rejected, the parliament should show the same courage with the IMF program and the debt calendar. The public should push the government about this issue.

Sonmez said the Uzan family and the Cukurova group benefited from the tax remissions. He emphasized there was a tax remission when there was need for new taxation's.(ÖG/BB/EA/NM)

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