Crisis-hit Turkey adopts revised budget with deficit of $24.8 billion
The parliament of crisis-ridden Turkey approved on Thursday, June 14, a supplementary budget of 30,640 trillion liras (some $26 billion), increasing the deficit by almost six times to 29.700 trillion liras (some $24.8 billion).
The amendment, forced by a severe financial turmoil in February, brought the total amount of planned spending for 2001 to almost 79,000 trillion lira.
An overwhelming part of the newly designated spending ― 24.600 trillion liras ― would go to interest payments, mainly on funds for the ailing banking sector, which many see at the core of recent financial troubles.
In the original budget, interest expenditures were set at 16.600 trillion liras and the deficit target at 5.200 trillion liras.
The adoption of the supplementary budget was one of the requirements of the International Monetary Fund (IMF) to release the second installment of a multi-billion-dollar loan to back Turkey's program of tough economic reforms.
Ankara revised its economic targets after the February crash. The currency has since fallen by about 40 percent against the dollar. The change of policy has brought new budgetary burdens, widened the country's debt, and sent the economy into a recession. ― (AFP, Ankara)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)