Mobius sees $1 billion Turkey investment

ISTANBUL (Reuters) - Templeton Asset Management's veteran fund manager Mark Mobius said on Wednesday it envisaged investing $1 billion in Turkey in the next two to three years.

Prior to the crisis, its total investment in Turkey was around $2 billion but has since come down to about $1 billion, he told a conference in Istanbul.

"As money comes in and investors are more interested in higher revenue-generating investments, this could go back up $1 billion in two to three years' time," he said.

Investment in Turkey has been hit by the global economic crisis, which has also slashed domestic economic activity. The economy shrank 13.8 percent in the first quarter of the year.

However, Mobius said the crisis had not hit Turkey so hard and that he remained positive on the country's outlook.

Turkish financial markets and business leaders are closely watching to see whether the government agrees a laon accord with the International Monetary Fund to bolster its finances.

A previous $10 billion accord expired in May last year.

Mobius said it was not necessary for Turkey to join an IMF programme.

"However some of the disciplines asked by the IMF are after all good for the economy, such as lower government spending," he said.