Turkey is seeking an additional $10 billion to $12 billion in foreign financing to implement its economic reform package, Economy Minister Kemal Dervis said here Tuesday, March 28. "There is a need for additional net foreign financing," Dervis told reporters in Washington, where he was holding talks with officials from the United States and international financial institutions.
Turkey has faced a cash crunch triggered by fears of political instability since abandoning a pegged exchange rate last month to float the lira, in breach of a three-year IMF-backed anti-inflation plan in place since December 1999. Since then, the lira has lost around 30 percent against the dollar amid rising prices and prospects of extra budget expenditures.
Officials have said Turkey will need foreign financial aid to implement the reforms required to overhaul the battered economy, especially to cover the huge losses of three public banks. Dervis, a former World Bank vice president appointed economy minister several weeks ago, left for Germany and the United States last week to drum up support for a financial aid plan backed by the International Monetary Fund (IMF). —(AFP)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)