New stock exchange as a way out of crunch
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Hurriyet Daily News
Oluşturulma Tarihi: Aralık 29, 2008 00:00
ISTANBUL - Criticizing the government’s claim that the crisis is psychological, a top businessman suggests the creation of a stock exchange for small- and medium-size enterprises to overcome the credit crunch.
Turkey was able to resist the first wave of the global financial crisis, but a bigger wave will reach our shores, a top businessman said Friday. He suggested the formation of a stock exchange for small- and medium-size enterprises, or SMEs, could be a way out of the crisis.
Speaking at the meeting of the Eurasia Industrialists and Businessmen’s Association, or ASİAD, chairman Ömer Faruk Başaran said Turkey is "yet to face the devastating affects of the global crisis."
"Prime Minister Recep Tayyip Erdoğan did well in standing firm and saying that Turkey's economy was strong enough to remain unaffected by the crisis at the beginning of the turmoil. But still, there are things that needed to be done after this first statement of self-confidence," he said.
Criticizing Erdoğan for his recent remarks that the crisis was psychological in Turkey, Başaran said it was impossible to agree with such a statement, "First of all, this current crisis is a crisis of the whole global financial system, not only of Turkey's. The government is acting slowly and this will cause the country to pay a heavy price when the crisis deepens."
The second wave of the crisis may be devastating for Turkey's economy, he said. "The government should have been proactive in taking measures. Obviously, just saying that nothing will happen to Turkey will not prevent the crisis contaminating Turkey's economy in the upcoming period."
SMEs stock exchange
Even though the government does not take the crisis seriously, there are measures that need to be taken, said Başaran. "We will keep suggesting solutions. For example, a stock exchange for small- and medium-size enterprises can be established and they can be saved from the clutches of the banks. They can survive through trading their shares in such an exchange," he said.
"Turkey's economy is seriously wrapped up in high domestic and foreign debt," Başaran said. "As it is quite hard to access liquidity amid the crisis, the government could also establish a pool for state-owned properties, sell them and use the income to clean up domestic and foreign debt."
The government should also create a crisis desk, Başaran said. "As the affects of the global crisis in Turkey are not well managed, the economy will experience hard times. The government could launch a desk that focuses particularly on the likely problems the crisis may create."
Başaran said he expects there will be bankruptcies in Turkey by the second quarter of next year and these will boost unemployment. "Unemployment is the most significant problem in Turkey and it may cause a social explosion in the upcoming period," he said.
Speaking at the meeting of the Eurasia Industrialists and Businessmen’s Association, or ASİAD, chairman Ömer Faruk Başaran said Turkey is "yet to face the devastating affects of the global crisis."
"Prime Minister Recep Tayyip Erdoğan did well in standing firm and saying that Turkey's economy was strong enough to remain unaffected by the crisis at the beginning of the turmoil. But still, there are things that needed to be done after this first statement of self-confidence," he said.
Criticizing Erdoğan for his recent remarks that the crisis was psychological in Turkey, Başaran said it was impossible to agree with such a statement, "First of all, this current crisis is a crisis of the whole global financial system, not only of Turkey's. The government is acting slowly and this will cause the country to pay a heavy price when the crisis deepens."
The second wave of the crisis may be devastating for Turkey's economy, he said. "The government should have been proactive in taking measures. Obviously, just saying that nothing will happen to Turkey will not prevent the crisis contaminating Turkey's economy in the upcoming period."
SMEs stock exchange
Even though the government does not take the crisis seriously, there are measures that need to be taken, said Başaran. "We will keep suggesting solutions. For example, a stock exchange for small- and medium-size enterprises can be established and they can be saved from the clutches of the banks. They can survive through trading their shares in such an exchange," he said.
"Turkey's economy is seriously wrapped up in high domestic and foreign debt," Başaran said. "As it is quite hard to access liquidity amid the crisis, the government could also establish a pool for state-owned properties, sell them and use the income to clean up domestic and foreign debt."
The government should also create a crisis desk, Başaran said. "As the affects of the global crisis in Turkey are not well managed, the economy will experience hard times. The government could launch a desk that focuses particularly on the likely problems the crisis may create."
Başaran said he expects there will be bankruptcies in Turkey by the second quarter of next year and these will boost unemployment. "Unemployment is the most significant problem in Turkey and it may cause a social explosion in the upcoming period," he said.