Anadolu Agency: News in English, 00-12-06

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ANADOLU AGENCY

NEWS

06 DECEMBER 2000

Wednesday

CONTENTS

[01] TURKEY-PRESS SCAN

[02] PRIME MINISTER ECEVIT (1)

[03] ADDITIONAL SOURCE TO TURKEY FROM IMF -TREASURY UNDERSECRETARY DEMIRALP: (2) -''WE HAVE REACHED AN AGREEMENT WITH IMF IN ORDER TO OVERCOME THE FLUCTUATIONS IN THE FINANCIAL MARKETS AND THE CURRENT SITUATION IN THE FINANCIAL SYSTEM''

[01] TURKEY-PRESS SCAN

HURRIYET (LIBERAL)

FRAMEWORK OF AMNESTY COMPLETED
The parties of the coalition reached a consensus on the amnesty issue. There will be ten-year of reduction in the sentences for the crimes which were included within the scope of the amnesty. The Article 125 of Turkish Penal Code, which Abdullah Ocalan was sentenced in accordance with, organized crimes, historical artifact smuggling, torture, weren't included in the amnesty. People who emptied the coffers of the banks, and the ones who misused their authorities weren't also included within framework of the amnesty.

MILLIYET (LIBERAL)

FIVE BILLION U.S. DOLLARS FROM WORLD BANK
Nicholas Stern, the Chief Economist of World Bank, said that the World Bank Board would take up a five billion U.S. dollar total aid package to Turkey for next three years. Stern said that he believed the Turkish financial markets would overcome the crisis in coming months. ''The Turkish government has recently been implementing a reform programme and we consider it a sound programme. We are closely cooperating with the Turkish government and we will continue to do so,'' he said.

STANDARD & POOR'S REVISE TURKEY'S OUTLOOK FROM POSITIVE TO STABLE

Standard & Poor's, a global rating agency, revised the outlook on the ratings on Turkey from positive to stable. At the same time, Standard & Poor's affirmed its single 'B'-plus long- term local and foreign currency issuer and senior unsecured and its 'B' local and foreign currency short- term issuer credit ratings on Turkey. Standard & Poors, while listing the reasons for the change to stable from positive, said that intense liquidity pressures are a serious threat to the Turkish government's IMF-supported stabilization and structural reform programme, and that tougher new measures are now needed to bring it back on track.

MILD EARTHQUAKE JOLTS BODRUM
A mild earthquake measuring 3.2 on the Richter scale jolted Bodrum township of western Mugla province. Istanbul-based Kandilli Observatory Seismology Institute said that the quake which occurred at 07:32 p.m. on Tuesday, was centered on Bodrum. The quake caused panic among residents. There were not any reports of casualties or damages in the quake.

SABAH (LIBERAL)

PROMISES TO IMF
The government gave promises to the International Monetary Fund (IMF) which is expected to provide ten billion U.S. dollars to overcome the recent economic crisis in Turkey. These promises are, salaries of the civil servants and the workers will be increased in accordance with the inflation targets, operations will be launched for the banks which have problems in their financial structure, tender will be opened for the Turk Telekom this month, non-budgetary funds will be liquidated by March 2001, a privatization schedule including the energy sector will be prepared, an evaluation for the limits in the monetary policies will be made.

CUMHURIYET (LEFT)

CASE OF ASSASINATION OF UGUR MUMCU
File of suspect Abdullah Argun Cetin who has been tried on charges of ''being involved in assasination of journalist-writer Ugur Mumcu in a car- bomb attack on January 24 1993'', was combined with the file of main case regarded with Umut (Hope) operation which was launched to find murderers of Mumcu, and later covered 22 incidents including assasinations of Prof. Dr. Ahmet Taner Kislali, Prof. Muammer Aksoy and Dr. Bahriye Ucok. The indictment sought capital punishment to suspect Cetin.

HEZBOLLAH MEMBERS SENTENCED TO 12 YEARS IN PRISON
Trial of 20 suspects who were captured in southeastern Gaziantep province in operations against the terrorist Hezbollah organization, was finalized at the Adana State Security Court (DGM) no: 1. The court delegation sentenced five suspects to 12 years and 6 months in prison, and remaining 15 suspects to 3 years and 9 months in prison.

RADIKAL (LEFT)

CASE OF INCIDENTS AT ULUCANLAR PRISON
The Ankara High Criminal Court no: 5 decided that the court delegation should withdraw from the case of the incidents at Ulucanlar Prison on September 26, 1999 in which ten people were killed. The Court also decided to transfer the file of the case to the Ankara High Criminal Court no: 6 to debate defense lawyers' request for challenge of judge. After the court delegation announced its decision, suspects chanted slogans. Gendarmes intervened in the suspects, and took them out of the court hall by using force.

YENI BINYIL (LIBERAL)

PAPANDREOU AND CEM OVERCOME PROBLEM THROUGH DIALOGUE
Foreign Minister Ismail Cem and his Greek counterpart George Papandreou overcame the problems through dialogue. Both Papandreou and Cem said they were pleased with the Accession Partnership Accord for Turkey which was declared by the European Union (EU) on Monday. Both foreign ministers who were aware of the internal and external pressures, established a dialogue to overcome the problems. This attitude contributed to the efforts of France, the term president of the EU, in preparing the Accession Partnership Accord. The EU sources said this success was belonging to Cem and Papandreou.

TURKIYE (RIGHT)

FULL CONSENSUS ON AMNESTY
The draft law on conditional release from prison was brought to Parliament shortly after Deputy Prime Minister Mesut Yilmaz said that they had reached an greement on the draft law. The draft law excludes the crimes committed against the state and organized crimes. Those who commit forestry and military crimes, bribery, illicit drug trafficking, money laundering, fraudulent bankruptcy, preparation of falso and phony cheques and documents and rape are also excluded from the scope of the draft law.

WE REACHED AN AGREEMENT WITH IMF
Prime Minister Bulent Ecevit said that the talks with the IMF delegation were going well. Ecevit will make a statement today on the final document signed with the IMF. Stating that financial issues had also been discussed with the IMF delegation, Ecevit said that their talks on the amount of additional source were under way.

ACCESSION PARTNERSHIP DOCUMENT PROBLEM SOLVED
Ankara welcomed the exclusion of Cyprus and Aegean from the pre-conditions part of the Accession Partnership document. Devlet Bahceli of the Nationalist Movement Party (MHP) said that the ''partial corrections'' which had been made upon Turkey's reaction were positive but insufficient. ''It is important to show respect to national sensitivities of Turkey and not to ignore Turkey's rights. It is seen that the Turkey-EU relations have entered a long-term period.''

PUBLIC SERVANTS TO BE INTERROGATED
Ismet Metin, the Governor of northern province of Zonguldak, said that the 3,270 civil servants who joined the general strike on December 1 and later were identified would be sent to the Prosecutor's Office. ''Despite the warnings, they continued their action. As the high-level officials, we are obliged to take necessary measures,'' he said.

ZAMAN (CONSERVATIVE)

ECEVIT: ''WE ARE DETERMINED IN F TYPE''
Prime Minister Bulent Ecevit stressed that the state authority in the ward system in prisons had been destroyed. ''Any country can't endure this forever,'' he said. The prime Minister reiterated that they wouldn't give up F type prisons.

12 TRILLION LIRAS SPENT ON BODYGUARDS
Interior Minister Sadettin Tantan said that 1,159 people were still being protected by bodyguards. he said that 12 trillion Turkish lira was spent on those bodyguard services.

WE SQUEEZE EMERGENCY MONEY OUT OF IMF
Prime Minister Bulent Ecevit made the first statement on the talks with the IMF delegation which was holding contacts in Ankara to overcome the economic crisis. Ecevit said that talks were going well. Treasury Undersecretary Selcuk Demiralp said that the talks were about to be finished and that they had reached an agreement in principle with the IMF.

''BREAK YOUR DEATH FAST''
Making a statement on several inmates' death fast which reached a critical level, Justice Minister Hikmet Sami Turkey called those inmates to break their death fast.

TWO OTHER SUICIDES IN BATMAN
The efforts of almost ten organizations and institutions including especially the Religious Affairs in order to prevent suicides in southeastern province of batman failed to bring result. Two more young women committed suicide in Batman.

STOCK EXCHANGE BOOMS
Agreement with the IMF and recovery of relations with the EU ended the collapse of markets. Almost every share rose to ceiling price, and there was a 19.45 percent increase that has never seen before. The demand for foreign exchage settled down and the overnight repo decreased to 180 percent.

COST OF TWO LIVES IS TEN BILLION LIRAS
Baran Balcioglu who killed two young people in a traffic accident was released on a ten billion Turkish lira bail. The plaintiff families were shocked by the court verdict.

-INTERVENTION IN TWO MORE BANKS
-MANAGEMENT OF DEMIRBANK TRANSFERRED TO FUND AND PERMISSION TO
PARK YATIRIM BANKASI TO CARRY OUT BANKING SERVICES ANNULLED
ANKARA - The Banking and Regulatory and Supervision Board transferred management, control and partnership rights except dividends of Demirbank to the Savings Account Insurance Fund and annulled the permission to Park Yatirim Bankasi to carry out banking services on Wednesday.

Making a statement, the Board publicly announced that intervention in two more banks was made.

It said that management and control of Demirbank T.A.S. had been transferred to the Fund in accordance with third paragraph of Article 14 of the Law no:4389 as its losses had exceeded its own funds, it failed to fulfil its commitments and liabilities on time, it couldn't get source from the Central Bank and banking system, it was suffering a liquidity shortage and continuation of its services endangered rights of depositors and stability of financial system.

It said that Demirbank would continue its normal services under management of the Fund as of the same day, and continue to fulfil each of its commitments and liabilities.

It stressed that a situation which could cause depositors of Demirbank to panic and feel concern was out of question.

Meanwhile, the Board added that the permission to Park Yatirim Bankasi A.S. to carry out banking services had been annulled as it failed to fulfil its commitments and liabilities on time, total amount of its commitments had exceeded the amount of its total assets and continuation of its services endangered the stability of financial system.

[02] PRIME MINISTER ECEVIT (1)

Staging a press conference at the Prime Ministry building together with Deputy Prime Ministers Devlet Bahceli and Mesut Yilmaz, Prime Minister Ecevit gave information about recent economic developments and talks with the IMF.

Prime Minister Ecevit said, ''disinflation and financial adjustment programme which was put into practice by the government at the end of 1999, has three factors. First of these factors is high amount of recovery in public sector non-interest balance; second of them is foreign currency level which had been arranged earlier; and the third factor is acceleration of structural reforms.''

''This programme supported by the IMF with a stand-by deal has succeeded in decreasing inflation, strengthening public finance and accelerating economic growth,'' he stressed.

Prime Minister Ecevit told reporters, ''during the past two weeks, high fluctuation was experienced in financial markets. This fluctuation has given rise to concerns about future of economy and success of government's disinflation programme. Having regard to these negative developments, our government has decided to implement a series of comprehensive measures package aiming at strengthening banking sector, increasing foreign exchange inflow through privatization, and accelerating decrease in inflation.''

Stressing that a well-operating banking system was an important part of economy, Prime Minister Ecevit said, ''banks having difficulties could affect economic growth seriously. Increasing uncertainty about these banks led us to take rapid and sound measures.''

Noting that deposits guarantee system in banking sector was continuing, Prime Minister Ecevit said, ''loans for banking sector are under guarantee of the government. But deposits of owners of banks, deposits connected with crimes, tied loans and equity of stockholders are excluded from scope of this guarantee. The guarantee will be valid till confidence is re-settled in banking sector. The guarantee will be managed by the Savings Account Insurance Fund, and our government will provide adequate financing to the Savings Account Insurance Fund.''

-EUROPEAN UNION SEMINAR TO BE HELD IN ISTANBUL
ANKARA - The European Union (EU) seminar will be held in Istanbul between December 11-14.

Releasing a written statement Export Promotion Center of Turkey (IGEME) said that the seminar would be organized together by IGEME and Hellenic Export Promotion Organization (HEPO) for the officials of the Balkan Centre for Trade Promotion (BCTP).

The BCTP was set up in accordance with the intergovernmental agreement signed on 13 October 1998, to improve the economic and commercial relations between the Balkan countries and to increase the share of the region in the world trade.

A total of 50 people will participate in the seminar including 30 participants from the instutions of the BTCP member countries, and 20 participants from the foreign trade institutions of Turkey.

Historical development of the EU, the enlargement process and the institutions of the EU, international trade and the EU policies, the joint foreign and defense policy of the EU, relations with the Central and Eastern European countries, economic and monetary unity, Euro and its effects, the project management and financial cooperation between Turkey and the EU, single EU market and its benefits will be discussed during the seminar.

-PRIME MINISTER ECEVIT (2)
-''TENDER NOTICES ABOUT SALE OF 51 PERCENT OF THY SHARES
AND 33.5 PERCENT OF TURKISH TELECOM SHARES WILL BE MADE
BY DECEMBER 14''
ANKARA - Prime Minister Bulent Ecevit said on Wednesday that the tender notices about sale of 51 percent of Turkish Airlies (THY) shares and 33.5 percent of Turkish Telekom's shares would be made by December 14, 2000.

Staging a press conference at the Prime Ministry Building together with Deputy Prime Ministers Devlet Bahceli and Mesut Yilmaz, Prime Minister Ecevit gave information about recent economic developments and negotiations with the IMF.

Prime Minister Ecevit said, ''privatization revenues create an important source to finance the budget deficit, and contribute to replacement of foreign exchange reverves in coming months. I want to underline that tender notice for Turkish Telekom would be made by December 14, 2000 to this end. The tender will include sale of 33.5 percent of shares to strategical investors. It will also include granting strategical investors an administrative right over the company.''

''Secondly, the Directorate General of Privatization Authority will make a tender notice about 51 percent of THY shares by December 14. Thirdly, our government is determined to adopt a law on electricity in order to accelerate privatization of electricity sector. The draft law on electricity will be submitted to the parliament by December 14. We hope that the law would come into force by end-January of 2001,'' he told reporters.

Ecevit said, ''disinflation programme will continue within framework of the foreign currency policy which was put into practice at the end of 1999. Success of the disinflation programme will be increased with the government's undertaking a more active role which can lead to an agreement that is in harmony with the inflation rate targeted between the government and the social sides in negotiations on salaries.''

Referring to the foreign currency policy, Prime Minister Ecevit said, ''our government is determined to implement the economic strategy including the current foreign currency policy. Our government will do its utmost to realize its inflation targets for year 2001. Formation of a stable macroeconomic frame and sustenance of it in the course of time are necessary to increase Turkish economy's expectation for medium term growth to the maximum.''

-ADDITIONAL SOURCE TO TURKEY FROM IMF
-TREASURY UNDERSECRETARY DEMIRALP: (1)
-''AMOUNT OF SOURCE OBTAINED FROM IMF IS A
LITTLE HIGHER THAN TEN BILLION U.S. DOLLARS''
ANKARA - Treasury Undersecretary Selcuk Demiralp said on Wednesday that the amount of source obtained from the International Monetary Fund (IMF) in accordance with the agreement they had reached was a little higher than ten billion U.S. dollars.

Following Prime Minister Bulent Ecevit's statement at the Prime Ministry building, Gazi Ercel, the Governor of Central Bank, Michael Deppler, the Director of European One Department of IMF, and Demiralp staged a joint press conference on the agreement reached with IMF.

Stating that more powerful economic and structural measures would be put into effect in order to reach the final target of the programme to decrease the inflation rate to one-digit numbers, Demiralp said that the amount of source obtained within framework of the agreement reached with the IMF was a little higher than ten billion U.S. dollars.

Stating that within this framework, a 7.5 billion U.S. dollars of source had been obtained from the IMF under the name of Supplemental Reserve Facility (SFR), Demiralp said, ''this amount will enter into our accounts in accordance with a specific plan after the IMF Board's meeting on December 21, and it will be added to the Central Bank's reserves.''

Demiralp said that they expected the World Bank to accelerate and extend the one billion U.S. dollars of loans to Turkey in December within framework of the five billion U.S. dollars of country assistance strategy which had been announced earlier.

Selcuk Demiralp added that World Bank was planning to extend an additional source within framework of this five billion U.S. dollar loan to the Banking and Regulatory and Supervision Board for restructuring of banks.

(To be continued)

[03] ADDITIONAL SOURCE TO TURKEY FROM IMF -TREASURY UNDERSECRETARY DEMIRALP: (2) -''WE HAVE REACHED AN AGREEMENT WITH IMF IN ORDER TO OVERCOME THE FLUCTUATIONS IN THE FINANCIAL MARKETS AND THE CURRENT SITUATION IN THE FINANCIAL SYSTEM''

Demiralp said that the measures taken by the government aimed to rapidly re- settle the confidence of domestic and foreign markets in the economy.

Staging a joint press conference with Central Bank Governor Gazi Ercel and IMF's European One Department Director Michael Deppler, Selcuk Demiralp made a statement on the agreement reached with the IMF.

Demiralp said that they had reached an agreement with the IMF in order to overcome the fluctuations in the financial markets and the current situation in the financial system continuing since November 22.

''During a period in which we took all necessary economic measures and in which we think the programme is being implemented successfully, our economy has been exposed such a pressure and endurance test. The measures taken by the government within framework of the latest situation and determination in implementation of the programme aim to rapidly re-settle the confidence of domestic and foreign markets in our economy,'' he said.

Demiralp said that the measures which were announced by Prime Minister Bulent Ecevit reiterated the government's political determination and proved that any concession wouldn't be made from the ongoing economic programme.

Demiralp stressed that big sum of sources obtained from international organizations once more confirmed thier confidence in Turkey's economy, government and policies that were followed within the economic framework.

''Undoubtedly, the successes that have been achieved and the progress that has been recorded in last one year of the programme have played the most important role in activation of international support,'' he said.

''Especially the measures taken for rehabilitation of the financial sector aim to grant a more sound structure to the Turkish economy in medium and long term periods. Any change in final targets of the economic programme has not been made. More powerful economic and structural measures will be put into practice in order to reach the final target of the programme to decreae the inflation rate to one-digit numbers,'' he added.

-CENTRAL BANK CHAIRMAN ERCEL SAYS THERE WILL BE NO
DEVIATIONS FROM DISINFLATION PROGRAMME
ANKARA - Central Bank Chairman Gazi Ercel has said that the disinflation programme of the government will continue to be run without any deviations from its set up targets.

During a press conference with Treasury Undersecretary Selcuk Demiralp and IMF Europe Chairman Michael Deppler on Wednesday, Ercel said that the economic stability programme which was started a year ago was still effective and continuing.

''The troubles we faced in the last two weeks have been mostly overcome by the IMF's financial support to Turkey which exceeds 10 billion U.S. dollars, '' Ercel said. ''I would like to underline one point. There are and will be no changes in the economic programme. This is very important for monetary and foreign currency policies.''

The measures taken regarding inflation, growth, public financing, structural reforms and income policies will become more effective in the coming days, Ercel also pointed out.

''This will be clarified in the letter of intent which we will announce following the IMF Executive Directors Council meeting on Dec. 21.,'' he went on to say. ''Our government's determination and strong policies are the biggest insurances of our programme. Our goal in running this programme is to make Turkey enter among the first class countries in the medium term. The negative developments which took place in the last two weeks are not significant enough to create any deviations from our economic targets.''

At the end of his speech, Ercel said he believed 2001 will be a much better year than 2000.

-TREASURY UNDERSECRETARY DEMIRALP SAYS TURKEY REQUESTED
ADDITIONAL CREDIT FROM WORLD BANK
ANKARA - Selcuk Demiralp, the Treasury Undersecretary said on Wednesday that they asked for an additional credit from the World Bank for the banking reconstruction programme of the Banking Regulation and Audit Board (BDDK).
Responding to questions of journalists after a joint press briefing together with Central Bank Governor Gazi Ercel, IMF European I Department Director Michael Deppler, Demiralp said that all the decisions taken and the studies undertaken aim at making the Turkish banking system healthy.

Demiralp said that the problems that came out in the market stem from the difficulties and weaknesses in the banking sector, adding that banks' credits abroad need guarantee. ''An assurance has to be given that the credits coming from abroad will be paid back to creditors. If this is not the case, foreign banks and creditors can face difficulties when giving credits to our banks.''

Demiralp said that the technical details about assurance will be announced by the BDDK.

When a journalist told Demiralp that IMF gave 30 billion dollars to Argentina, asking if 10 billion dollars was enough for Turkey, Demiralp said that the economic policies implemented by Argentina and Turkey are totally different from each other.

Noting that the economic situation of the two countries can't be compared, Demiralp said that Argentina was in a position of even not paying her foreign payments. He said that there is no reserve difficulty in Turkey, but there is a decrease in reserves. The aid provided aims at reinforcing the decreasing reserves, he stressed.

You must have an arrangement where problems of individual banks do not weaken the system as a whole, Michael Deppler, the IMF's European Department head, said in his part. The measures announced aim at reassuring the trust of everybody to the banking sector, he said adding that the problems in Turkey are related to the general banking sector. ''When these problems are solved, you will see that the interest rates will reduce again, '' he added.

Upon another question, Demiralp said that the Supplemental Reserve

Facility (SRF) aims at reinforcing the reserves, adding SFR won't be long term. Its date of maturity will be 18 months, he noted.

Demiralp indicated that the letter of intent was prepared and it will be sent to the IMF Executive Board on Dec. 21 to be discussed.

Demiralp said that they will continue to inform the press about structural regulations, adding that privatizations and other issues will also be included in the additional letter of intent.

''The target in 2001 is to decrease the inflation rapidly and to reduce the current account deficit,'' he said.

Demiralp remarked that they had credit talks with the World Bank in the banking sector, adding that they will discuss a package of 5 billion dollars in the World Bank Executive Directors meeting on Dec. 21. Demiralp said that 778 million dollars of that is the first portion of the financial sector credit and its 250 million dollars will be used for social solidarity in the country after privatization. Demiralp added that one billion dollars of credit will be discussed at the Executive Directors meeting.

Upon another question, Demiralp said that they want to provide liquidity to the banking sector in order to ease the sector.

Responding to another question about giving assurance to foreign creditors, Selcuk Demiralp said that ''the aim is to create a healthy banking sector, and to open credit lines for the banking sector. The aim is to provide the assurance of the foreign markets to our banks and banking sector.''

-FINANCIAL SUPPORT FROM IMF TO TURKEY
-DEPPLER, DIRECTOR OF EUROPEAN ONE DEPARTMENT
OF IMF: ''I AM PLEASED TO ANNOUNCE THAT WE HAVE REACHED
AGREEMENT ON COMPREHENSIVE POLICIES''
ANKARA - Michael Deppler, the Director of European Department of IMF, said on Wednesday that he was pleased to announce that they have reached agreement with Turkey on comprehensive policies.

Addressing a news conference which he staged together with Treasury Undersecretary Selcuk Demiralp and Central Bank Governor Gazi Ercel, Deppler said banking sector was very important in the studies which the IMF carried out in Turkey.

Briefing about the statements of Horst Kohler, the IMF Managing Director, which he made in Washington D.C. about Turkish economy, Deppler said more than 10 billion U.S. dollars loan will be provided to Turkey. This will consist of an amount equivalent to about 7.5 billion U.S. dollars (SDR 5, 784 million) under the Supplemental Reserve Facility and the approximately 2.9 billion U.S. dollars (SDR 2,227 million) still available to Turkey under its current stand-by arrangement.''

Pointing out that the IMF officials will stay in Turkey for a few days more and continue studies on technical details related with the program, Deppler briefed about the details of the financial credits that will be provided to Turkey.

Deppler said the Fund used SDR (Special Drawing Rights) as the monetary unit, adding that there may be changes in figures as exchange rates change between the SDR and the U.S. dollar.

Deppler said the financial source more than 10 billion U.S. dollars, that will be given to Turkey, was calculated over today's exchange currency, and noted that within the scope of the additional reserve facilities, Turkey will be given 2.250 billion U.S. dollars addition reserve facility on December 21. He also said 550 billion U.S. dollars source, will be provided within the framework of stand-by agreement.

Deppler said they will make Turkey to use 1.1 billion U.S. dollars on January 20, 1.1 billion U.S. dollars on February 20, and 750 million U.S. dollars on March 15, June 15, August 15, and November 15.

Deppler also said apart from these, drawings which approximately worth of 280 million U.S. dolars, will be realized every three months.

-AKINCI, DEPUTY PRIME MINISTER OF TRNC:
''U.N. IGNORES FACTS ON CYPRUS''
LEFKOSA - Mustafa Akinci, the State Minister and Deputy Prime Minister of the Turkish Republic of Northern Cyprus (TRNC), said on Wednesday that facts in Cyprus were ignored in a report which Kofi Annan, the U.N. Secretary General, submitted to Security Council regarding renewing the mandate of the U.N. Peacekeeping Force in Cyprus (UNFICYP) for six months.

Responding to the questions of reporters before Council of Ministers meeting, Akinci said TRNC was accused on the issue of UNFICYP.

''The U.N. should first of all discuss why arrangements were needed which brought limitations to the activities of the Peace Forces. Why it continuously ignores the facts on Cyprus. All these should be evaluated in a healthy way.''

''Even if the TRNC is not recognized, it should be seen as a de facto reality that there is no single state structure on Cyprus, and that evaluations should be made basing on this,'' said Akincioglu, stressing that the TRNC did not make arrangements regarded with the peace forces immediately, but that this was an accumulation.

Akinci said, ''demand of the TRNC on the issue is an extremely natural one. We want them to reach a compromise with us for the arragements,'' and noted that they expected the U.N. to be more careful and realistic in this respect.

''We don't want conflict with the U.N. We expect the U.N. to contribute to the peaceful solutions. We expect them to put the TRNC fact in a framework that can be acceptable, even if they don't recognize the TRNC.''

Responding to a question, Akinci said he believed that talks related with Cyprus would continue, and noted that, ''solution of a problem would be through talks. The shape and the format can change, but it was never seen that a problem is solved without negotiations.''

-STATE MINISTER TOSKAY SAYS TURKEY WILL MOSTLY OVERCOME
POVERTY IN NEXT TEN YEARS
ISTANBUL - State Minister Tunca Toskay has said that Turkey would mainly overcome poverty in the next ten years through policies for a fair income distribution, economic stability and sustainable growth.

Toskay spoke at a panel meeting on Wednesday where Turkish Indistrialists' and Businessmen's Association (TUSIAD) presented a report to the public opinion. The report is titled ''Individual Income Distribution in Turkey and Poverty - Comparison with EU''.

In his speech, Toskay said poverty became an important subject due to the changes which occurred in technologic, economic and social fields in the recent years and globalization.

Poor income distribution and poverty are causing very serious social problems in many societies, Toskay asserted noting that 1.3 billion of the 6.2 billion people in the world are living under poverty limit.

Besides the unjust income distribution in countries, Toskay said there are significant economic inbalances among countries. The United Nations intensified its efforts to prevent poverty in the world through a series of international meetings, he added.

In the 20-year period after 1980, Turkish economy had some significant achievements, however poverty remained as an important problem, Toskay went on to say.

Turkey, in 1995, came 69th among 174 countries in human development index, and in 1999 it rose to 86th, Toskay explained. In 1978, the richest 20 percent of the Turkish population had a 47 percent share from the Gross National Product (GNP), and this ratio increased to 54.9 percent in 1994. In EU countries, Toskay said, this is between 35 and 40 percent. The poorest 20 percent of the Turkish society was receiving 6.3 percent from the GNP in 1978 and this share dropped to 4.9 percent in 1994. This figure is about 9 percent in EU countries.

Although the absolute poverty rate is 2.5 percent, the relative poverty rate is 15.7 percent in Turkey and this is higher than the 5 and 8 percent range of the EU countries, Toskay explained. He pointed out that that these figures indicated malfunctioning of the social state principle of the Constitution.

In an effort to fight against poverty, the 57th government targeted to bring down the high inflation, regulate the interest rates to open the way for production and investments and maintain macro economic stability.

''These days in which we have neared the end of the first year of the 3- year programme, are quite tough for those with limited and fixed income,'' Toskay went on to say. ''We know that we have to eliminate the effects of this poor income distribution for a balanced social development.''

At the end of his speech, Toskay said he believed Turkey would mostly overcome poverty in the next ten years.

-DE SOTO DEPARTS FROM CYPRUS
LEFKOSA - UN Secretary General's Cyprus Special Representative Alvaro De Soto left Cyprus on Wednesday after wrapping up his contacts on the island.

De Soto told reporters at Larnaka Airport that he would work to prepare grounds for the sixth tour of the proximity talks when he visits Cyprus next January.

During his stay on the island, De Soto met with Turkish Republic of Northern Cyprus (TRNC) President Rauf Denktas and Greek Cypriot leader Glafkos Clerides. During a press conference he held yesterday, he stated that currently there was no basis for face-to-face talks and pointed out that they targeted a comprehensive solution.

De Soto will return to Cyprus in January.

-STATE MINISTER TOSKAY SAYS GOVERNMENT DETERMINED ON
MEDICAL INTERVENTION FOR INMATES WHO ARE ON DEATH FAST
ISTANBUL - State Minister Tunca Toskay has said that the government is determined to take all measures for a medical intenvention for protesting inmates who continue their death fast in various prisons.

Responding to a question, Toskay said ''we think that doctors should also accept to do a medical intervention since there is a human life in question and work with us.''

Three members of the Parliament Human Rights Commission today visited the inmates who are on death fast in Istanbul's Bayrampasa Prison, however they failed to pursuade them to end their protests.

Commission members spoke with about 20 inmates who are on death fast.

Yesterday, 18 inmates including five women joined the protest of other 13 inmates at Bayrampasa who have been on death fast for 48 days. This raised the number of protesting inmates to 31 in this prison.

The inmates who are on death fast seem to be in good health condition, but they refuse medical intervention due to the decision they took before they started their protest.

-DSP DEPUTY LEADER RAHSAN ECEVIT SAYS
LAST FORM OF AMNESTY DRAFT LAW IS AS SHE WANTED
ANKARA - Rahsan Ecevit, the deputy leader of the Democratic Left Party (DSP) said on Wednesday that the last form of the amnesty draft law is as she wanted it to be.

Responding to questions of journalists in the airport before she and Prime Minister Bulent Ecevit left for Nice, Rahsan said that ''the amnesty law is generally in the form I wanted it to be. There are some differences in some details. This is not that important, its essence is good.''

Rahsan Ecevit didn't further comment on details.

-STATE MINISTER TOSKAY SAYS IMF'S FINANCIAL SUPPORT IS ENOUGH
TO PULL TURKEY OUT OF ITS CURRENT ECONOMIC TROUBLES
ISTANBUL - Regarding the recent IMF support to Turkey, State Minister Tunca Toskay has said that the amount of the financial support is sufficient to pull Turkey out of its current economic troubles.

It is essential to speed up the structural reforms, Toskay said noting that without these reforms, it is not possible to preserve a long lasting economic stability.

Responding to a question on the transfer of Demirbank to the Savings Deposit Insurance Fund, Toskay said ''we all know that the banking sector has certain structural problems.''

''The rapid decrease of the interest rates put some banks in a very difficult situation. This was not a big surprise for us, we were expecting difficulties in this sector. The Banking Regulation and Inspection Council will do whatever is necessary to bring a solution to these structural reforms. But it is unfortunate that a decent bank like Demirbank has been transferred to the fund.''

Toskay stated that it was very important to run the economic programme without deviating from its targets.

Responding to criticism on tax system, Toskay said the tax administration has a very low performance in the last 25 years. ''We can't solve this problem without openly admitting them,'' he said.

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