3/10/2008

Turkey to send letter of intent to IMF for 7th review

The New Anatolian - Turkey will send its letter of intent for the 7th review of stand-by arrangement to International Monetary Fund (IMF) in March. The letter of intent was completed, but the officials are waiting for the progress in social security reform which is one of the most important criteria asked by IMF. After 7th review, the remaining two reviews will be combined. The 19th stand-by arrangement will be completed on time, in the beginning of May. Within the scope of the current stand-by deal with IMF, 3.4 billion USD of loan opportunity remained. This loan will be lent in two equal tranches. First loan tranche (1.7 billion USD) will be given after the 7th review; and the rest will be lent during the last review. Under the letter of intent, structural reforms will be implemented, measures will be applied for a stronger public finance and also privatization program will be pursued. Liberalization in energy will be further strengthened, and privatization strategy regarding state banks will continue.