The World Bank has postponed two meetings to discuss proposed loans to Turkey until the crisis-struck country fulfills remaining reform pledges, the Bank said in a statement received here Wednesday, July 4.
The decision comes in the wake of the postponement of an International Monetary Fund (IMF) meeting on Tuesday to consider the next tranche of crisis funds to Turkey for the same reasons.
The World Bank statemeent said that the postponed meetings—originally scheduled for Thursday—would have focussed on loans worth a total of $1.7 billion aimed helping Turkey overhaul its banking system and reform the agriculture sector.
The statement quoted the bank's acting president Sven Sandstoerm as saying that despite considerable progress in the implementation of tough economioc refoms, Turkey had yet to undertake a "few agreed actions... which form part of the government's program."
"The two proposed loans would be presented to the Board of Directors soon, once the few remaining actions are fulfilled," Sandstoerm said.
On Monday, the IMF potsponed a meeting of its board of directors, scheduled for Tuesday, citing Turkey's failure to take several actions on the overcrowded banking sector, seen to be at the root of the country's economic woes.
The board meeting was expected to approve the release of $1.5 billion (1.8 billion euros) in IMF aid to Turkey, from a total aid package of $8 billion.
The Fund has also expressed doubt over the new executive board for Turk Telekom, which has been put up for privatization, that was named last week after weeks of disaccord in the government.
Under IMF demands for a multi-billion aid package, Turkey has pledged to install a "professional and competent" administration with no political affiliations in a bid to curb political influence on the country's dominant telecommunications operator.
Turkey sought crisis aid from the IMF after the country floated the currency to overcome a cash crunch in February, causing the Turkish lira to lose about 40 percent of its value against the dollar and disrupting an IMF-backed anti-inflation plan.
The Fund and the World Bank agreed on a multi-billion aid package to Turkey in May on condition that it fulfilled to the full all the reforms in its ambitious economic program. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
