Turkey's deputy PM Babacan says government supports c.bank policy

ISTANBUL Wed Aug 17, 2011 4:58am EDT

ISTANBUL Aug 17 (Reuters) - Turkish Deputy Prime Minister Ali Babacan said on Wednesday the Turkish Central Bank is taking the necessary steps when needed and the government is supporting the bank's policies.

Ali Babacan said in an interview on Kanal 24 television that the public debt to gross domestic product (GDP) ratio of Turkey will decrease below 40 percent in 2011, adding that the public net external debt stock is under 1 percent of the GDP.

Babacan said the Turkish economy may grow below 5 percent in 2012 and the government puts the priority for 2011 and 2012 on sustainability and not on the economic growth.

"The currency adjusted loan expansion will be at 25 percent on average at the end of 2011. July current account deficit will be quite lower than previous months."

Babacan said the target of 25 percent for loan growth is still valid, however it could be revised in the fortcoming days, as the government is waiting to see the measures that Europeans would take. (Writing by Seltem Iyigun)

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