Turkey working on post-stand-by deal with IMF
Posted by meb at April 7th, 2008
Turkey’s economy bureaucrats are working on a new agreement with the International Monetary Fund (IMF) after the 19th stand-by arrangement is completed on May 10.
First option is a program follow-up and the second is a cautionary stand-by with the IMF, economy analysts said.
A new agreement that would replace the current program will definitely be signed although it would not include a financial support because an external anchor was vital for Turkey in floating global economic conditions, analysts said.
International credit rating agencies are also closely tracking the prospective deal between Turkey and the IMF, and cautionary stand-by deal seems more probable considering global liquidity positions, economy experts said.
Turkish economy administration had meetings at the weekend to discuss last review with the IMF and potential alternatives for the current stand-by arrangement.
Turkish Deputy Prime Minister and State Minister Nazim Ekren chaired the meeting which was also attended by Turkish State Minister Mehmet Simsek and other top economy officials.
Meanwhile, an IMF delegation, led by Turkey Desk Chief Lorenzo Giorgianni, is holding talks in Ankara with Turkish economy bureaucrats on the last review of the current stand-by arrangement. The IMF delegation is expected to depart from Turkey at the weekend.
IMF directors will approve a loan tranche of 3.4 billion USD within the framework of stand-by arrangement with Turkey. Last two reviews will be combined and the loan tranche will be released as one part, experts said.
On the other hand, a Turkish economy delegation led by Turkish State Minister Simsek will leave for Washington, D.C. on April 10th to take part in IMF spring meetings.
source: The New Anatolian
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