Turkey, IMF outline financial recovery plan

Published March 18th, 2001 - 02:00 GMT

Turkey’s new economic czar, Kemal Dervis, plans to introduce a three-stage plan to get Turkey out of its economic predicament, reported the Turkish Daily News.  

 

At a press conference Monday, March 19, the minister announced that Turkey and the International Monetary Fund (IMF) had "reached an agreement on the financial and monetary policies that will be implemented."  

 

Concluding two-day talks with IMF's Europe chief, Michael Deppler Dervis, it was decided that Turkey would outline the economic program by mid-April and submit a letter of intent to the Fund, whereupon it would be discussed at the IMF executive forum. 

 

The first stage of Dervis’ plan would be a series of emergency stopgap measures. The second phase would involve a concerted effort to reduce significantly the rate of inflation to a month-on-month 2-3 percent. And the third stage would involve international support and borrowing. 

 

Dervis said that the implementation of his recovery package could put Turkey on a positive growth trend during the second half of 2001. Turkey is capable of seven percent growth a year, he said, but noted that, if the economy’s contraction continues and emergency measures are neglected, growth may run at a negative four to five percent. 

 

Dervis also met with labor leaders to drum up support for his recovery plan. Among them were Suleyman Celebi, chairman of the Confederation of Revolutionary Workers' Unions (DISK), and Bayram Meral, chairman of the major labor confederation Turk-is. The meetings were open to press and aired live on television. 

 

Celebi said unions would object to an economic program based on a negative two percent economic growth, because inevitably it would involve increased layoffs. — (Albawaba-MEBG)

© 2001 Mena Report (www.menareport.com)


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