Turkish stocks soar 18.6 percent on IMF rescue aid

Published December 7th, 2000 - 02:00 GMT

The Istanbul stock exchange closed up 18.6 percent on Wednesday, December 6, after Turkish Prime Minister Bulent Ecevit had announced that the IMF would release $10 billion of emergency aid. 

 

The national index rose by 1,632 points to reach 10,387 points. 

The massive rise in the stock market came after Ecevit declared that talks aimed at securing additional funds from the IMF had "ended in full agreement" and that the fund would release $10 billion to Turkey. 

 

On Tuesday, the stock exchange registered a record 19.5-percent rise to close at 8,755 points after government hints that it was near a deal with the IMF. 

 

For the past two weeks, Turkey has been suffering from a severe liquidity crisis, massive flight into foreign currency and sky-rocketing interest rates. 

Due to the turmoil, the stock exchange had slumped by 44 percent since mid-November. 

 

Earlier Wednesday, dealers had underlined that the IMF announcement and the government measures had served to inject confidence in the markets.— (AFP)  

 

© Agence France Presse 2000 

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