Turkey set to end an IMF stand-by for first time
Posted by meb at April 16th, 2008
Economy Minister Mehmet Şimşek has said that Turkey’s current program with the International Monetary Fund (IMF) will end on May 10, after which post-program monitoring will take place, adding that talks may be held for a precautionary stand-by agreement, if necessary.
This is the first time Turkey has completed an IMF-backed stand-by program as previous initiatives had been cancelled before the programs expired.
Speaking at a press conference following the 27th annual conference of the American-Turkish Council (ATC) in Washington, D.C., Şimşek said: “We have spent several productive days in Washington. We have reached a broad agreement with the IMF over the review. A letter of intent will be conveyed in a short time. We will have successfully concluded the IMF program. We hope this will be approved by the IMF Executive board,” he said. Şimşek also talked about the post-program process, noting that the current program with the IMF will continue until May 10. “After that date, there are two options. The first is the post-program monitoring, which will be automatically implemented,” he explained. The Turkish minister did not rule out a precautionary stand-by arrangement, saying that further dialogue may be developed with the IMF “if necessary.”
Şimşek said he would be flying to New York for talks with several investment and rating agencies and then on to Brussels. In response to questions about future relations with the IMF, Şimşek said: “We have always suggested that the program should be concluded and that Turkey’s needs should be discussed. Without completing one program, you cannot move on to another. ”
IMF mission releases statement
The IMF’s mission to Turkey issued a statement yesterday on the discussions related to the seventh review under the IMF’s stand-by agreement with Turkey, noting that the mission, led by Lorenzo Giorgianni, held talks in Ankara between April 3 and 10 and that the discussions had continued between April 11 and 14 in Washington in the context of the Spring Meetings of the IMF and the World Bank.
“The mission has reached ad referendum broad agreement with the authorities on a package of policies that aims at completing the seventh and final review under Turkey’s Stand-By Arrangement with the IMF,” the statement said, adding: “In the weeks ahead, IMF staff and the authorities will work together to finalize a draft Letter of Intent, with a view to allowing the IMF Executive Board to consider the completion of the seventh and final review under the current Stand-by Arrangement in early May.” The statement also said Turkey will be able to draw an amount equivalent to about $3.7 billion after completing this review.
source: Today’s Zaman
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