The profiteer of 2001 crisis, Finance Minister Nebati sold dreams

Nureddin Nebati, Textile Boss and Minister of Treasury and Finance, who came out of the 2001 crisis wealthier, whilst millions of citizens were crushed by the impacts of the inflation, said of the current crisis, "If we are finished, we will all end together. If we win, we're all together. There are pessimists who are painting a dark picture. There are those who don't believe us in any way. This is what I am telling them; 'You're on a salary. What have you got to lose the most? At worst you'll be crushed below inflation. But I'll lose all my assets if this doesn't get better."

Speaking to Habertürk's Sevilay Yılman, Treasury and Finance Minister Nureddin Nebati said, "Our model is not the Chinese nor the South Korean model. This is Turkey’s model.” Nebati said, he will explain the subject ‘model’ in more depth. He responded to the question of, “what if this model fails?”, as “I will be saddened. Because I will either become my children’s superhero or going back home with my neck bent and I'll be twisting their necks too."

Stressing that they are 'absolutely committed' not to raise interest rates, Nebati said, "We are committed to our leader. I would never do anything against Tayyip Erdogan’s wishes! I'm telling you that clearly. Let everyone know."

Nurettin Nebati's brother and partner, Sayid Nebati, said, "It is not possible to compete with China. The workers sleep in the factories, the total cost is around $60."

1 MILLION PEOPLE ARE UNEMPLOYED, INFLATION EXCEEDS 88 PERCENT

In 2001, 969,000 people joined the army of the unemployed in Turkey, while employment decreased by 440,000. In 2001, official inflation was 88.6%. (Economic Service)

THE COST OF EFFECTIVE INTERVENTION IS $1.5 BILLION

The dollar/TL rate, which started the new week with a rise due to the message that the RATE discounts will continue, has increased from 13.84 to 14.62. The dollar/TL exchange rate, which fell to 14.34 with the intervention of the Central Bank, lost 3.5 percent on a day.

As of December 1st, the Central Bank, which has intervened four times in direct foreign exchange against dollar/TL volatility, is reported to have sold more than $1.5 billion.

WHAT DO ECONOMISTS SAY?

Commenting on the messages of Treasury and Finance Minister Nebati, economist Prof. Dr. Hakan Kara said, "There can be no 'what if' approach in public policy.

Nasreddin Hodja joked that when yeast does not ferment in the lake, the cost is zero, but if it does not ferment in economic policy, the whole society pays the cost."

HE CAME OUT OF THE 2001 CRISIS RICHER

The real effective exchange rate, one of the indicators showing the real value of TL, was 108.2 in 2000. With the crisis of 2001, when the Turkish lira became extremely devalued, the real effective exchange rate decreased to 87.6. Today, the real effective exchange rate decreased to 54.33 points, 33 points below 2001, while labour in Turkey has become cheaper than ever. The new Finance Minister Nebati came out of the 2001 crisis enriched, and in an interview with Yeni Şafak (New Dawn) in 2006, he said, "We lost a lot of money in the 2001 crisis, but we also became one of the few companies that grew in the crisis. Maybe if it wasn't for that crisis, we wouldn't have had a chance to get into merchandising. Because there were numerous stores in shopping malls who stopped trading. There was also a gap in quality children's clothing.  We have contract production reaching 300,000 units per year. Two factories work for us with 100 percent capacity. We started with 100 percent imports, now we export 2 million euros to Italy." (EVRENSEL DAILY)