Posted by meb at December 2nd, 2008

International rating agency Moody’s warned Tuesday that the Turkish economy would enter recession in 2009 if it does not cut a new agreement with the International Monetary Fund (IMF).

“Without an IMF program, Turkey will end up going into recession in 2009… The issue is one of confidence,” Moody’s Turkey analyst, Kristin Lindow, said in a presentation to a conference in Istanbul on Tuesday.

Turkey’s latest IMF stand-by deal had expired in May and the government is yet to decide the shape of future relations with the fund.

The new agreement is expected to include financial support as well, a major shift from the government’s previous stance. The loan amount is expected to be around $20-40 billion. Market players have been piling pressure on the Turkish government to cut a deal with the IMF.

Turkey’s rating at Moody’s currently stands at Ba3, below investment-grade.
source: Hurriyet daily news

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