7/10/2009

Turkey to merge all tax inspectors under a single authority

Bloomberg - Turkish bonds gained, pushing yields toward a record low, after a Sabah report of planned changes to the tax-collection regime raised speculation that a loan agreement with the International Monetary Fund (IMF) may be closer. Turkey is planning to merge all of its tax inspectors under a single authority - a step that will go some way to addressing measures the IMF has requested before it agrees to provide support for the EU membership candidate, according to Sabah newspaper. IMF loans will help Turkey finance its budget deficit and reduce the amount of debt the Treasury has to sell. “Reports of steps that are compatible with the IMF have had a positive impact” said Turgut Keles, Executive Director of local markets trading at WestLB AG in Istanbul. “In addition, there are still expectations for a central-bank rate cut when it meets on July 16.”