AliBabacan, once in charge of Turkey's economy, has detailed aplan to support the private sector, as the economy faces challengesfrom the coronavirus outbreak.
Babacan, formerly a close associate of President Recep Tayyip Erdoğan, has recently launched his Democracy and Progress Party, or DEVA — an acronym that means “remedy” in Turkish.
In a statement released on March 17, Babacan proposed a series of measures to limit the negative financial effects of the novel coronavirus on the businesses and citizens.
Koronavirüs salgınına karşı alınması gereken ilave önlemlerle ilgili yaptığımız çalışmayı paylaşıyorum. pic.twitter.com/s1eIooMecG— Ali Babacan (@alibabacan) March 17, 2020
The government should prevent job losses as several firms will not be able to fight the virus' financial toll, Babacan said. The government should either postpone or cut payroll taxes for businesses, he noted. “Every kind of employment incentive should be utilized as soon as possible. Unemployment funds are for these days,” he said.
The government should implement exemptions on any kind of public sector-related payments until the “effects of the crisis subside,” Babacan said.
Healso urged the authorities to postpone electricity, water and gasbill payments. “The distribution companies [of electricity, waterand gas] should be given the necessary [financial] support which willbe in need of financial aid as a result,” he said.
Authorities should make sure that banks ease their rules on providing consumer loans as well as their rules on credit card debt payments, DEVA chairman said.
The Central Bank should make sure that banks' liquidity needs are met, he noted.
“Thedesign of the public expenditures should be reviewed with anunderstanding which gives importance to our people's health and willprevent job losses in the sectors affected by the crisis and suchexpenditures should be given a priority,” he said.
“Implementationswhich will weaken the supply chain of staple food and agriculturalproducts should be avoided.”