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Turkey's finance minister conceded that the country has "had a few experiences that don't reflect well" for investors in an interview defending the country's
financial strength. Mehmet Simsek defended his government and central bank's policy to CNBC and pledged to continue to allow free capital movement out of the country. "We have had
a few experiences that don't reflect well and we are aware of that," he admitted. "Domestic issues have been taken out of context and that has reflected negatively on where we
stand." Mustafa Ozer | AFP/Getty Images Three ministers in the Turkish government resigned last year after a wide-ranging corruption probe - which Prime Minister Recep Tayyip Erdogan
has blamed on a "parallel state" within the Turkish state targeting his government. Erdogan has since announced an investigation into the police officers who arrested people as
part of the probe. (_Read more_: Turkey: What's going on and why you should care) "We need to enhance competition and democratic standards," Simsek admitted. Simsek, whose
government has come under attack inside and outside the country after the value of its currency plunged, told CNBC that the government would not resort to controversial policies like
imposing a transaction tax or imposing capital restrictions. Turkey has become the focal point for concerns about emerging markets in recent weeks, after the U.S. Federal Reserve started
reducing the rate of its asset purchases – a process known as tapering. Last week, the Turkish central bank raised its overnight lending rate to 12 percent from 7.75 percent and the
overnight borrowing rate to 8 percent from 3.5 percent. This only succeeded temporarily in halting the lira's fall. (_Read more_: Turkey delivers massive rate hike to defend lira)
"There were some unjustified concerns about the unorthodox policy," Simsek said. Economists are concerned about the country's large current account deficit, and its falling
economic growth rate. Official forecasts for 4 percent expansion of the economy in 2014 are increasingly questioned by economists. "The question mark really is over events over the last
12 months," Neil Shearing, chief emerging markets economist at Capital Economics, told CNBC. He warned that the country could slip into recession this year. "We have to live with
more moderate growth. We are realistic in policy matters. The most important thing is the central bank's capability and its independence," Simsek said. (_Read more_: Why an
emerging markets panic may be justified) Simsek also set out his stall for investment in Turkey. He said: "Investors are welcome and they know it." - _By CNBC's Catherine
Boyle. Twitter:_ @cboylecnbc