Hürriyet, Turkey
May 27 2008

Turk PM forsees fall in FDI inflows due to closure case

Turkish PM Tayyip Erdogan said foreign direct inflows (FDI) to Turkey
is expected to decrease to $13 billion, lower than earlier estimates
of $25 billion, due to the rising uncertainty after the closure case
filed against the AKP, Referans business daily reported.

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.