ANKARA, Nov 28: Turkey is expecting to attract a record amount of more than $5 billion of direct foreign investment by the end of the year, Economy Minister Ali Babacan said on Monday. Speaking in parliament on the 2006 budget, Babacan explained that the value of direct foreign investment had grown from $1.7 billion in 2003 to $2.8 billion in 2004 and $3.7 billion in the first nine months of this year.

“We expect this figure to exceed $5 billion at the end of the year and reach a record amount,” the Anatolia news agency quoted him as saying.

“Conservatively, we expect a foreign capital flow of more than $16 billion for the 2006-2008 period,” he added.

Babacan did not say whether the year-end estimate for 2005 took into account a series of major privatization tenders recently carried out.

Foreign investment is vital for the Turkish economy as it consolidates recovery from a severe financial crisis four years ago and prepares to overhaul itself for membership of the European Union.—AFP