Babacan: No Obstacles to US Credit

In a statement to NTV yesterday, Babacan said that the decison about US loans would be able to be made following the International Monetary Fund’s sixth review of its stand-by agreement with Turkey in October or November, and following the seventh review at the beginning of January. Babacan stated that the US credit would be obtained at better-than-market rates, and would be released in installments rather than a lump sum. “Right now, we see no obstacles to these loans. But we are being cautious. We won’t count on the US$8.5 billion until it’s in our safe.”

Babacan stated that the primary budget surplus target for May had been reached, but the government wanted to borrow TL 2 or 3 quadrillion from the US to meet an expected end-of-the-year deficit. He added that the ministry would take measures if any deviations were observed.