IMF to visit Turkey in mid-December, deal term to be at least 18 months
Posted by meb at December 5th, 2008
An IMF delegation would visit Turkey to discuss the final details on the new deal after the local holiday next week, while various media reports circulate over the financial extent of the agreement.
The state-run Anatolian Agency said the Turkish government prefers a short-term regular stand-by for 1.5-2 years in order to get an immediate financial support over the country quota. The report did not say how much financial support Turkey seeks to get.
It also said an IMF delegation would visit Turkey to discuss the final details on the new agreement after the religious holiday ends on December 15.
Earlier Reuters news agency reported the government is expected to seek a loan agreement with the IMF amounting to $25 billion; while broadcaster NTV said the report was denied by the officials.
NTV said the works on the financial details of the deal are still underway but added the government is planning to borrow around 16 billion dollars from IMF. It also said an additional package would be implemented to save up to 6 billion dollars.
Early on Friday, Economy Minister Mehmet Simsek said Turkey nears to finalize the deal with the IMF and the talks are at an advanced step. He did not elaborate the details.
Reuters reported the gross domestic product growth was expected to be flat in 2009, while inflation was seen around 14-15 percent.
The budget spending cuts are seen around 8-10 billion liras, while the IMF demands Value Added Tax (VAT) to be increased to 18 percent from 8 percent on some products, Reuters suggested.
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