Turkish fiscal rule vote may not come in Oct -Simsek

HELSINKI, Aug 4 (Reuters) - Turkey's parliament may not vote on a fiscal-reform bill seen as vital to Ankara's push for an investment-grade rating when it reconvenes in October, Finance Minister Mehmet Simsek said on Wednesday.

The so-called fiscal rule aimed at cutting Turkey's budget deficit and debt will be helpful but is not essential since the government is acting consistently with its targets and is on track for this year's deficit-reduction target, Simsek said.

"It's very important for us to strengthen our fiscal credibility. We have not given up (on the fiscal rule); the commitment is still there," Simsek told a news conference in Helsinki, where he was meeting members of the business community.

"Hopefully, it will be revisited at some point."

The new law, due to take effect in 2011 if approved by parliament, is intended to cut the budget deficit to 1 percent of gross domestic product in 10 years, and debt to about 30 percent of GDP in five to 10 years.

In 2009, the deficit stood at 5.5 percent of GDP, and debt was 45.5 percent of GDP.

"We have been operating under an implicit fiscal rule," Simsek told a news conference in Helsinki, where he was meeting members of the business community.

"Whether or not fiscal rule gets adopted or not by our parliament in October, it will not make a big difference," Simsek said.

Simsek said Turkey was slightly ahead of plan to meet its target of cutting its budget deficit to 4.9 percent of GDP this year. "Our 2010 performance so far is even better than what we've been targeting."

Turkey is enjoying a solid economic recovery helped by government stimulus spending and low interest rates.

The International Monetary Fund has forecast that economic growth in Turkey will exceed 6 percent this year, a sharp rebound after a contraction of 4.7 percent last year.

The Turkish lira hit a three-month high against the dollar this week. It has since weakened again after disappointing recent U.S. data hurt risk appetite, making investors warier of emerging markets such as Turkey.

In answer to a question about the effect of the strong lira on Turkey's current-account deficit, Simsek said: "I'm convinced that in the medium to long term Turkey will manage to narrow its deficit."

"In the short term, I think Turkish deficit at around 4 percent of GDP is financeable."

(Reporting by Georgina Prodhan)