UPDATES WITH MORE REMARKS BY TREASURY MINISTER; ADDS DETAILS</p> <p>By Muhammed Ali Gurtas and Tuba Sahin</p> <p>ANKARA (AA) – Turkey will focus on structural reforms to achieve the target of becoming greater and more powerful economy, the treasury and finance minister said Wednesday.</p> <p>"This transformation and reform process will decisively continue in a four-and-a-half-year period with no election," Berat Albayrak said. </p> <p>Speaking at a news conference to announce the government's action plan, Albayrak said the financial sector prioritized a new set of structural reforms for 2019.</p> <p>"Strengthening state-run lenders' capital structure will be our first step," he said, adding that the Treasury will issue 28-billion Turkish lira worth (around $5 billion) government debt securities to make state banks' balance sheets robust.</p> <p>Albayrak said studies in coordination with the banking watchdog and banking association are continuing to support private lenders' capital structure.</p> <p>The minister noted that a new individual pension system according to citizens' income level will be determined in the upcoming period.</p> <p>"We give priority to create an effective and healthy saving system, starting from state to individuals, to eliminate fragilities in economy.</p> <p>"In the next five years, funds accumulated in the new retirement system will exceed 10% of the country's gross domestic product," Albayrak said.</p> <p>He added that Turkey will also take steps in real sector to ensure healthy working of financial sector.</p> <p> A total of 50 state/private/foreign lenders — including deposit banks, participation banks, and development and investment banks — conducted banking activities in Turkey as of February.</p> <p>Measuring the health of loans, the ratio of non-performing loans to total cash loans — the lower the better — was 4.11% in February, versus 2.92% in the same month last year.</p> <p>Also touching on consumer prices, Albayrak said the National Unity in Agriculture project will be most important reform to combat food inflation.</p> <p>"In May, this comprehensive strategy will be unveiled by the Ministry of Agriculture and Forestry," he said.</p> <p>As of March, Turkey's annual inflation rate was 19.71%, slightly up from 19.67% in February. </p> <p>Over the last decade, annual inflation saw its lowest level at 3.99% in March 2011, while it peaked at 25.24% in October 2018.</p> <p>Under Turkey's new economic program announced last September, the country's inflation rate target is 15.9% this year, 9.8% next year, and 6.0% in 2021.</p> <p>Albayrak also said a greenhouse corporation will be established to work as a balance element in fresh vegetables and fruits market. </p> <p>"At the first stage, a technologic greenhouse will be built on some 2,000 hectares by this corporation in 2019," he said, aiming to meet 25% of the country's total greenhouse production in the long-run.</p> <p>Meanwhile, red meat price stability will be supported by “sheep and goat farming move,” Albayrak said.</p> <p>"Turkey's stock of sheep and goats will reach 100 million within four years thanks to the government incentives.”</p> <p>According to the official figures, the number of ovine animals surged 4.1% to 46.1 million heads last year.
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