The Executive Board of the International Monetary Fund (IMF) has completed the seventh review of Turkey's economic performance under its Stand-By Arrangement and approved the disbursement of an amount equivalent to $495 million.
In completing the review, the Executive Board also granted Turkey's request for waivers, and approved the re-phasing of the remaining program reviews and an extension of the Arrangement through February 3, 2005 to allow time for the final disbursement under the program, reported a press release.
"Turkey's economic program has continued to deliver impressive results," said Acting Managing Director and Chair, Anne Krueger following the Executive Board discussion. "Economic growth has exceeded program targets for the second year running, interest rates have fallen sharply, helping Turkey's debt dynamics, inflation has declined to its lowest rate in a generation, and confidence in the Turkish lira has been restored."
"The government's commitment to meeting its primary surplus target of 6½ percent of GNP in 2004 has played an important role in this success," Krueger continued. "The government's recent corrective measures, including cutting discretionary spending by 13 percent and raising excises, demonstrate its commitment to meeting the 2004 program target, and the government should remain vigilant to avoid slippages."
Turkey's Stand-By Arrangement was approved on February 4, 2002 in a total amount of $18.6 billion. So far, Turkey has drawn approximately $16.2 billion under the Arrangement. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
