Turkey and IMF draft new agreement

The loan, which will stretch over three years, will assist in the ongoing process of reforming the Turkish economy, Babacan said.
According to Reza Moghadam, the IMF’s Turkey desk chief, Turkey had done well to reduce inflation and stimulate economic growth. However, it was important to ensure that these successes were sustained,
In a statement issued in Washington, IMF Managing Director Rodrigo de Rato said that the new letter of intent could be considered by the Fund’s Executive Board early in the new year.
“I believe the new program, if implemented successfully, will help Turkey create the conditions for sustained growth and employment creation, reduce inflation toward European levels, and enhance the economy’s resilience, in part through a significant further decline in debt,” de Rato said in his statement.
“Over the last three years, Turkey’s economic program has delivered positive results,” the statement continued. “Output has grown rapidly, inflation has fallen to its lowest level in a generation, and government debt has declined markedly. To build on this success, the authorities have formulated a detailed three-year economic program, for which they are seeking IMF support.”
de Rato cited the need for Turkey to continue to practice fiscal discipline, reduce its debt load and reform public expenditure, tax administration, and tax policy.