4/13/2009

Turkey- IMF negotiations continue

The Wall Street Journal - Turkey and the International Monetary Fund (IMF) have agreed on a "set of principles" to guide negotiations for a new three-year loan arrangement; however, the two sides have not reached a preliminary deal, said Mehmet Simsek, the Turkish Minister of Economy. In a telephone interview with the Wall Street Journal, Mr. Simsek said Turkey is looking for the IMF to be "flexible" in negotiations, which involve how much Turkey will cut spending and how it will revamp its tax system. Mr. Simsek did not disclose the amount of the loan Turkey is seeking. On Friday, Turkish stocks soared on expectations that the government would soon conclude a new loan accord with the IMF; however, Mr. Simsek said Turkey still has hard bargaining ahead which may take until the end of the month to conclude. "An agreement has not yet been sealed," he said. An IMF spokeswoman on Friday confirmed the IMF-Turkish discussions and said negotiating teams will meet soon, either in Ankara or Washington.

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