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The Turkish president announces his country’s new investment programme

Recep Tayyip Erdogan's public mandate on the "Investment Programme Preparations for the 2019-2021 Period" was published in the Official Gazette (in Turkey) on Thursday, October 11.

Turkey is ready "to implement a new economic programme" the head of state says in the mandate, in order "to preserve macroeconomic stability, raise production", and improve welfare.

Turkish authorities are looking forward to maintaining price stability "while reducing inflation and to further strengthen fiscal discipline", Erdogan has said.

Anadolu reads: Underscoring that Turkey's main target is save on public expenditures and to decrease inflation, the Erdogan's mandate further noted that "new projects will not be included in the 2019 Investment Program except for the compulsory cases within the scope of savings measures."

Ankara will focus on "efficient use of resources allocated to public investments". The president has added that, "Projects which do not directly serve the urgent needs of our citizens and do not directly serve the added value increase in the economy will not be offered." Thus, he sent the message of a stricter control state mechanism driven by the immediate public financial needs and concentrated on the betterment of the system as a whole, that should be reciprocal and compensatory.

Turkey's Development Bank

This Thursday has already been a "landmark" day in the very recent history of Turkey, since the parliament of the country ratified a bill early this morning that seeks to restructure the Turkish Development Bank.

The new Minister of Finance and Treasury who was currently handed this ministry's portfolio following the recent election (previously, he had served as Turkey's Minister of Energy and Natural Resources. He is Erdogan's son-in-law) had inclined the public in the country and abroad towards changes the government was examining in order to strengthen the banking system.

This is the tangible example.

"According to the bill, the Development Fund of Turkey will be established under the bank", Anadolu reads.

The DBoT will fund strategic sectors and plans and developments projects with the intention to beef up and support economic growth and the and manufacturing industry…. / IBNA

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Tsipras, Draghi and the reason behind their meeting

The meeting of Greek prime minister Alexis Tsipras with the head of the European Central Bank (ECB), Mario Draghi in Brussels could be nothing but accidental during the first summit, in the European capital.

Surely, there have been positive signals about the good course of the Greek economy, however, there is an issue that remains thorny for Athens and is related to the preparation of the next issue of a bond, which is scheduled for the beginning of the new year.

And why would Mario Draghi could have a say in this….

At the moment, all four Greek systemic banks (National, Eurobank, Piraeus and Alpha Bank) have in their portfolios approximately 7.5 billion euros in Greek government securities. But the ECB does not give the "green light" for their increase.

The above came into force in February 2015 during the time Yannis Varoufakis was at the helm of the Finance ministry, when Frankfurt expressed its concern that the Finance Ministry could filled banks with treasury bills and bonds in order to solve the liquidity problem of the state. This seems of no usefulness today.

As this restriction is lifted, players in the domestic securities market will become more and bond yields will fall to manageable levels, as the 10-year yield is currently close to 4.5%.

Therefore, the Greek side has well founded reasons to wish to see Draghi's stance changed…. / IBNA

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The frozen conflict between Serbia and Kosovo poses a “stability risk”

Washington appeals on both Belgrade and Pristina to use a "historic opportunity" and reach an agreement which would be a win-win solution, said Matthew Palmer, deputy assistant of the American secretary of state. Palmer spoke during the Belgrade Security Forum today. He has also met President Aleksandar Vucic.

"If somebody wins, and the other side loses, then nobody wins", Palmer said at the panel "Building on momentum in the Balkans".

The American official said that his country does not "push" towards any specific result of the dialogue between Belgrade and Pristina. "We do encourage both sides to find way forward as well as durable and sustainable solution", Palmer said.

The solution must be acceptable for the both sides, he went on. Washington is ready to "hear and assist", Palmer said, adding, however, that he cannot talk about details, especially on a possible swap of the territories.

Palmer explained that no plan of the territory swap has been presented so far. Although the United States do understand concerns that the territory swap could provoke a crisis in the other parts of the region, an unresolved dispute or "frozen conflict" could also "pose a risk for the regional stability", Palmer said.

He underlined that Serbia and Kosovo have a "European future" and that they both need assistance in that regard.

Palmer also referred to the former Yugoslav Republic of Macedonia and Bosnia and Herzegovina. If Skopje wants to join both European Union and NATO, then the Prespa Agreement has no alternative, he emphasised. Palmer appealed on political leaders in Skopje to overcome parties' divisions for the sake of a "European future".

Referring to Bosnia, Palmer said that the "biggest problem" of that country are its "corrupt politicians who use a nationalistic rhetoric to create divisions". He added that the United States are "committed" to Bosnia's territorial integrity.

The "United States want to help everybody. Stronger Western Balkans means a stronger Europe and a stronger Trans-Atlantic partnership", the American diplomat concluded…. / IBNA

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BiH against Kosovo’s membership in Interpol

Bosnia and Herzegovina will not support the membership of Kosovo in Interpol, the BiH Ministry of Foreign Affairs announced.

The Ministry explained this decision based on the fact that BiH has not recognised Kosovo as independent state yet and, accordingly, cannot support its membership in any of the international organisations.

In its press release the Ministry emphasised that it did not recognise the "the self-proclaimed independence of so-called Kosovo and, and in accordance with that, does not support the applications for its membership in the international and regional organisations, therefore it will not support a possible candidacy for the membership of so-called Kosovo in Interpol."

The exception, according to the ministry's statement is the participation of this region that declared independence from Serbia in 2008, in certain international and regional initiatives, which was previously harmonised with Serbia.

"BiH Ministry of Foreign Affairs has delivered to all competent institutions of Bosnia and Herzegovina a detailed explanation of the said foreign-policy goal, which is the ground for Bosnia and Herzegovina's acting at international forums", said the ministry.

Kosovo's recognition is a political issue in Bosnia and Herzegovina, where a decision to acknowledge the independence of this country requires the consent of three constituent ethnic groups and two semi-autonomous entities. Republika Srpska politicians are following the stance of Serbia on this matter. It means that BiH will not recognise Kosovo until Serbia does it.

Pristina issue triggered the very first sparks between elected members of BiH Presidency, Milorad Dodik and Željko Komšić, because Komšić recently said that, as far as he is concerned, Kosovo is an independent state. Dodik reacted with a statement, saying that there is no way to consent to BiH recognising this "Serbian region". Also, politicians in Serbia, the country's president Aleksandar Vučić and the Minister of Foreign Affairs, Ivica Dačić, underlined that the Komšić statement is not in accordance with the good relations between two states.

"BiH did not recognise Kosovo, and if members of the Presidency do not respect the territorial integrity of Serbia, they should know that they are breaking friendly relations, as well as provoking our reciprocal reaction. Instead, it's better to turn to co-operation and a common future", Dačić note…. / ΙΒΝΑ

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Inauguration of the SOCAR refinery in Izmir

The state-owned company of Azerbaijan, SOCAR, has put its own stamp in the field of hydrocarbon management in Turkey, inaugurating its first refinery in the eastern city of Izmir.

Turkish president, Recep Tayyip Erdoğan, and his Azeri counterpart, İlham Aliyev were at today's inauguration ceremony of the STAR refinery.

It took seven to build the refinery -its construction started in 2011- and is expected to reduce Turkey's annual current account deficit by at least $ 1.5 billion.

It is one of the biggest investments in Turkey's history, with a budget of $ 6.3 billion, and one of the largest oil and gas facilities in Europe, the Middle East and Africa. The STAR refinery started its operation by receiving the first cargo ship carrying 80,000 tons of crude from Azerbaijan in early August.

SOCAR's chief executive for Turkey, Zaur Gahramanov, then confirmed the arrival of the first freight and said production would begin at the end of October.

With this refinery Turkey's need to import jet fuels, which will account for 7% of STAR's total output, is expected to be completely eliminate while at the same time it is anticipated to reduce its LPG imports from 79% 70%.

With an annual production capacity of 10 million tons of crude, the refinery will also produce 1.6 million tons of naphtha and 1.6 million tons of jet fuel annually…. / IBNA

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Lending in Albania drops: Central Bank

The Report on Lending for the third quarter of the year published by the Bank of Albania suggests a decrease in lending for businesses operating in the country. Meanwhile, the report adds that lending for individuals grew and this includes consumer loans and mortgage loans.

On the other hand, in the last quarter of the year, banks are expecting to apply similar standards to the third quarter regarding business loans, while for individuals, they’re expected to soften them even further.

According to banks, demands for loans are expected to be higher in the third quarter for both businesses and individuals alike. /ibna/

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