Bloomberg’s Economist David Powell: “Europe and America where the crisis is experienced the most deeply envy Turkey today."
Türkiye Finans invited David Powell to Turkey to attend the meeting on the global economic crisis held on December 6th, 2011. Senior management and clients of the bank were also present at the meeting hosted by Türkiye Finans CEO Derya Gürerk. David Powell focused on two topics at the meeting: “Financial outlook of America and the effect of the developments on dollar" and "The latest situation of Europe in debt crisis" and gave important messages about Turkish economy.
Based on the forecast that Euro will experience a loss of value around a level of 25-30 during the 2 to 5 year period and the Dollar/Euro parity will be around 1/1.1 by the end of this process, Powell reminds that Turkish investors especially who conduct the majority of their exports activities in these two currencies should closely monitor the markets. Powell also said the diversification of exports markets would be in favor of Turkish economy and noted: “Today the world envies Turkey because of its robust economy and with correct actions taken; Turkey would become one of the most important economic centers of the world in the future.”
Powell: “The effects of the crisis become deeper in Europe while the restlessness continues in the recovering America.”
Painting not a very promising picture about the debt crisis prevailing especially in Europe, Powell emphasized the deepening effects of the current situation while he also underlined that despite all these drawbacks, they do not anticipate dissolution in the Euro "Recently, Belgium, Ireland, Portugal, Italy and Spain have come out with economic troubles following Greece. The problems faced by these countries are not likely to be solved soon” Powell also said and commented “The King is Naked” for France.
As for America, Bloomberg's Economist David Powell pointed out the restlessness continues although the markets seem to be recovering and added that healthcare expenses are the vulnerable point of America. Powell also emphasized that despite the radical actions taken by Obama Government no improvement has been made in this area and American economy is under serious pressure and threat because of this.
Gürerk: We learned lessons from 2001, it is good to be cautious…
Derya Gürerk, CEO of Türkiye Finans said in his assessment on the issue following Powell's statement: “We learned very important lessons from the crisis in 2001 and during the ensuing years our industry has undergone a very significant restructuring process. Where we stand today, this legacy allows us to minimize the effects of the global crisis on us” However we should always be cautious, Gürerk also said, reminding that the banking industry should act sensitively especially with respect to consumer loans and consumers should also behave cautiously in this respect.