STORY: Türkiye's economic shift fuels optimism but challenges persist: expert 
DATELINE: Sept. 26, 2023
LENGTH: 00:04:10
LOCATION: Ankara
CATEGORY: ECONOMY

SHOTLIST:
1. various of people on the streets in Türkiye 
2. various of Turkish lira and the U.S. dollar 
3. various of people shopping in Türkiye 
4. various of shipping trade in Türkiye
5. various of people shopping in Türkiye 
6. various of shipping trade in Türkiye
7. SOUNDBITE (Turkish): CAN SELCUKI, Director of Türkiye Raporu

STORYLINE:

Turkish Finance and Treasury Minister Mehmet Simsek revealed on Sept. 19 that Türkiye obtained some 10.4 billion U.S. dollars in external financing since the country embraced new policies in June.

The amount includes 6.7 billion dollars from the banking sector, 367 million from the non-banking financial sector and 3.26 billion from the real sector, according to the report.

After the new economic management put in place in June decided to aggressively hike interest rates from 8.5 to 30 percent to curb inflation and boost taxes to fight the budget deficit, there seems to be hope for a turnaround.

Humberto Lopez, the World Bank's country chief for Türkiye said in an interview with Anadolu Agency on Sept. 7 that his organization is anticipating presenting a new support program of 18 billion dollars over the next three years to help the Turkish economy.

Can Selcuki, an economist and head of an Istanbul-based research company told Xinhua that while new policies are positive it will not be easy for Türkiye to get rid of the burden of several years of ultra-loose monetary system that has caused skyrocketing inflation.

The country's annual inflation rate neared 60 percent in August and is expected to remain high by the year-end.

SOUNDBITE (Turkish): CAN SELCUKI, Director of Türkiye Raporu
"We see that the Turkish economy's credibility has increased following the recent (hefty) interest rate hikes. Reports by international institutions have called for renewed investments in Türkiye. Naturally, we have to take into consideration that there will be local elections next year and the Turkish government is stepping on the brakes.
Without a doubt, international markets have welcomed Türkiye's shift towards more rational policies. But the real turning point will be local elections in March. Until 2028 there will be no more elections in Türkiye, therefore we expect more sustainable policies early next year.
While the government's new middle-term economic program is comprehensive, its objectives are rather optimistic and would put further pressure on the working class despite a return to more conventional economic policies.
The government's objectives will increase the current injustice in revenues and put continued pressure on households for several more years.
Türkiye is paying a high price for a series of wrong policies including low interest rates launched in September 2021, and also the price of unprecedented spending ahead of the May general elections. Türkiye has had a big feast but now the restaurant owner has brought the bill and someone needs to pay it."

Xinhua News Agency correspondents reporting from Ankara.
(XHTV)