The Executive Board of the International Monetary Fund (IMF) has completed the sixth review of Turkey's economic performance under the Stand-By Arrangement, and approved the disbursement of an amount equivalent to $502 million, reported a press release.
In completing the review, the Executive Board granted Turkey's request for waivers for the non-observance of two structural and one quantitative performance criteria. The waivers relate to the end-September structural performance criterion on reducing over-employment in state economic enterprises and the end-October criteria for legislation improving the effectiveness of the Banking Regulation and Supervision Agency and the cumulative primary balance of the consolidated government sector.
"Turkey's economic program has delivered a remarkable strengthening of market confidence, while interest rates have fallen sharply,” said IMF Managing Director and Chairman Horst Köhler. “For the second year running, both economic growth and inflation look set to surpass program projections. The Central Bank of Turkey has increased its international reserves, while the Treasury's debt rollover has also improved. Financial market reaction to the terrible bombings in Istanbul has been relatively limited-a sign of the economy's greater resilience to outside shocks. Nevertheless, a significant reform agenda lies ahead, and there is no room for complacency.”
Turkey's Stand-By Arrangement was approved on February 4, 2002 in a total amount of $19 billion). So far, Turkey has drawn $16 billion under the arrangement. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
