In an attempt to maximize its chances of receiving a multi-billion dollar aid package from the International Monetary Fund (IMF), Turkey’s parliament recently passed a law for the injection of four billion dollars into its banking sector and the rescheduling of loan payments by private companies in a bid to revitalize the economy, reported AFP.
According the new law, the government will contribute capital to major banks in the form of treasury papers, on condition that in return the institutions match the injected amount by raising their capital bases to sufficient levels. Funds will also be contributed to support loans geared toward small and medium sized businesses, farmers and wholesalers.
The IMF made a statement in December 2001 that it was willing to back Turkey’s three-year economic plan but did not give details regarding the size of a possible loan. Turkey has already received approximately $15.5 billion from the IMF since the end of 1999. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
