World Bank, IMF back $15 billion in aid to Turkey
The International Monetary Fund and World Bank in separate actions Thursday, December 21, approved $15 billion for Turkey to support economic stabilization efforts there.
A senior Fund official said the IMF board of directors voted to provide Turkey with about $10 billion in aid, comprising $7.5 billion in additional emergency loans and $2.9 billion under an existing three-year credit arrangement.
IMF managing director Horst Koehler earlier this month said he would recommend board approval of the additional money after Turkish authorities, confronted with a financial crisis and loss of investor confidence, agreed to a series of economic reforms.
Announcing the board action Thursday, the official commended Turkey for speeding up privatization of the banking sector.
He said the funds would be dispersed in several stages, with more than half the amount available in the next three months.
Just across the street from the IMF, World Bank directors met Thursday, December 21, to approve $5 billion for Turkey through June 2003. A Bank statement said the loans would go to help the government reduce inflation, create employment, expand social services and environmental protection and improve public administration.
”We are prepared to support Turkey's structural reforms and longer term developments in a very significant manner," said Ajay Chhibber, the Bank's country director for Turkey.
"We believe that with determined implementation of its program Turkey can overcome the recent lack of confidence."— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)