8/13/2008

Turkey to finalize new IMF deal latest October

Hurriyet English - Turkey does not need the financial sources of the International Monetary Fund (IMF), so that a precautionary deal would be the most appropriate one and the new IMF deal would be completed by October, a Turkish minister said on Monday. "The private sector's external financial requirement is high. The public sector's external financial requirement is low. At this stage we do not have the need to use (financial) source from the IMF. If it will end with an agreement, the precautionary stand-by is the most appropriate one," Economy Minister Mehmet Simsek told CNBC-e broadcaster. A precautionary stand-by arrangement allows a fair degree of IMF oversight of fiscal policy but will only provide financing in emergencies, unlike the expired agreement, where the $10 billion was guaranteed. The studies on the new deal are expected to start this week, the Anatolian Agency reported on Sunday. Simsek said the preparations for the new deal could end by mid-October if there is an agreement between Turkey and the Fund. Investors see an IMF agreement as one of the two important anchors for the Turkish economy together with the European Union membership process. The final $10-billion stand-by between Turkey and IMF expired in May.