5/11/2009

Expectations of USD 30 billion from stand-by

Hurriyet Daily News - Benoit Anne, an emerging-market currency strategist at the Bank of America-Merrill Lynch, predicts that Türkiye will sign a USD 30 billion stand-by agreement with the Washington-based International Monetary Fund. The Turkish government may sign an agreement worth at least USD 30 billion with the International Monetary Fund, or IMF, helping extend the credit-market rally, said the Bank of America-Merrill Lynch. "We think the IMF program might surprise on the positive side," Benoit Anne, an emerging-markets currency strategist at the bank who worked at the IMF as an economist, said in a telephone interview on Friday. "Türkiye might even be eligible for a flexible credit line," he said, referring to the new form of funding for countries with sound public finances. Speculation that Türkiye will sign a new stand-by has helped drive down the cost of buying protection against a default to an 11-month low. Türkiye’s five-year credit-default swaps dropped to 268 basis points on Friday from a high this year of 521.51 basis points on March 2, according to prices from CMA Datavision. Meanwhile, the IMF accord might be worth USD 25 to USD 30 billion, JP Morgan Chase economist Yarkin Cebeci said in a televised interview with CNBC-e news channel. Türkiye does not require a loan of USD 40 billion to USD 50 billion, as some investors are expecting, Cebeci said in the interview on Friday.
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