Turkey should prioritize its fight against inflation and bring it down to 5% permanently, the head of Turkish Business and Industry Association (TUSIAD) said on Wednesday. "Low inflation rate is vital to provide long-term financing with low-cost in our own currency [Turkish lira], which we need," Simone Kaslowski said during the 10th Istanbul Finance Summit (IFS'19) that began on Wednesday.
This will pave the way for long-term investments while reducing financing costs and increasing predictability, Kaslowski added.
Noting that Turkish companies' financing costs are 3-4 times more than European countries, he said despite attractive incentives, investment flows to other countries due to high financing costs.
Efficient implementation of the New Economic Program, revealing structural reforms, strengthening institutions, making judicial reforms and proceeding in line with EU membership will provide confidence and bring growth to the decent level.
"This environment will help Istanbul to be a finance center," he added.
IFS to discuss finance, real sectors collaboration
Hakan Yurdakul, the member of Turkish Presidency's Economic Policies Board and the president of IFS' Advisory Board, said the world will see worse crisis than 2008 if finance and real sectors do not collaborate for the social wealth globally.
"In this summit, participants from various sectors such as defense industry, energy and construction along with finance will discuss impacts of the change in the financial sector," he noted.
"I believe we will reach a conclusion for the target of social wealth," he added.
The two-day IFS'19 is being held under the theme of Financial Metamorphosis and Back to the Future on Oct. 9-10 in Swissotel the Bosphorus in Istanbul's Besiktas district.
Within the scope of the event, several officials, economists, businesspeople, bankers and academics will give speeches in 19 sessions on several issues ranging from financial technologies, electronic trade to defense industries.
Last year, the summit hosted nearly 800 participants and 41 speakers from 23 countries.