Turkey: Positive market reaction to new Turkish leaders
Date
11/26/2015 5:40:17 AM
(MENAFN- The Journal Of Turkish Weekly) International investors have reacted positively to the choice of leaders for the Turkish economy in the new Cabinet revealed on Tuesday.
“The appointment of Mehmet Simsek as Deputy Prime Minister responsible for the economy is a welcome development in our view” according to Ahmet Akarli London-based Goldman Sachs senior economist responsible for covering Turkey Israel the Middle East and South Africa.
“Minister Simsek is an experienced policy maker who as Finance Minister played a crucial role in reinforcing fiscal discipline and directing overall economic policy” Akarli wrote in a briefing.
Simsek replaces Ali Babacan as deputy prime minister in charge of the economy.
Vladimir Miklashevsky an economist with Danske Bank in Finland told Anadolu Agency on Thursday: “We see Simsek’s appointment as a prudent continuation of Babacan policy. Yet Simsek could provide more flexibility in economic issues and in intermediation between the central bank the president and the government.”
Fabian Briegel an economist with Rabobank in Amsterdam wrote in a note published earlier this month that the former minister had been seen by international investors “as a proponent of prudent macroeconomic management”.
Nevertheless some experts say that the replacement of Babacan does not create cause for concern.
“Simsek is well-regarded by the markets” Hakan Aksoy Emerging Markets portfolio manager at Pioneer Investments in London told Anadolu Agency on Thursday.
“Investors would like to see effective and timely implementation of economic and structural policies which will be important to ensure long-term macroeconomic and financial stability.” Aksoy added.
Aksoy also said that there was interest in the appointment of Mustafa Elitas as economy minister to replace Nihat Zeybekci.
The experts placed great emphasis on the ability of the incoming ministers to push ahead with the agenda of economic reform.
“Supported by such experienced policy makers as Naci Agbal [Simsek’s former undersecretary and the new finance minister) and Cevdet Yilmaz [development minister] Mehmet Simsek should be well-positioned to secure continuity in economic policy and institute long-overdue structural reforms which are supported firmly by Prime Minister [Ahmet] Davutoglu” Akarli wrote.
by Andrew Jay Rosenbaum
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