Turk PM forsees fall in FDI inflows due to closure case

Economists and analysts had already estimated a fall in the FDI inflows because of the fallout of a credit crunch in the global markets."We want the ruling in the closure case to come as soon as possible. So that it does not harm Turkey; we see no economic disturbance and no impact on our fight against terrorism. Moreover there will be elections on March (2009)," Erdogan told a group of reporters from a number of newspapers, including Hurriyet and Milliyet dailies, in his plane en route to Turkey from Lebanon. Turkey needs FDI inflows to finance its huge current account deficit, which is expected to hit $50 billion in 2008. Turkey has attracted $22 billion in FDI in 2007.Erdogan added the government is trying to convince foreigners to invest in Turkey, saying "continuity is crucial in state administration," Referans reported on Tuesday.Turkey's Constitutional Court is expected to deliver its ruling in the closure case by year-end. The top prosecutor demanded the Islamist-rooted AKP's closure claiming the party became "the focal point of anti-secular activities," and the banning of 71 party officials including Erdogan and President Abdullah Gul."A French automotive company will invest $800 million to Turkey." Erdogan said the government reassured the company's concerns by ruling out political repercussions between Turkey and France would effect such investment decisions.Turkey and France relations had soured after the French parliament approved a bill that defines denial of the "Armenian genocide" claims as a crime. France's constant opposition to Turkey's EU membership is another problematic issue in the relations.