Köhler to ask IMF Executive Board to approve $10 billion in support for Turkey

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IMF Managing Director Horst Köhler on December 6 welcomed the additional measures announced by Turkish Prime Minister Bulent Ecevit to address Turkey’s current economic and financial problems. Stressing that the program deserves strong international support, he said he would ask the IMF Executive Board to approve a package of loans amounting to more than $10 billion, comprising about $7.5 billion under the IMF Supplemental Reserve Facility (SRF) and some $2.9 billion still available to Turkey under its current Stand-By Arrangement.

In a statement, Köhler said: “I welcome today’s announcement by Prime Minister Ecevit. The comprehensive set of additional measures demonstrates resolve and leadership in overcoming Turkey’s current economic and financial problems. The strengthened program builds on the achievements made so far in disinflation and fiscal consolidation and moves forward decisively the country’s structural reform and privatization agenda.

“I particularly welcome the government’s firm commitment to implement a bold set of measures to strengthen the soundness of the banking sector, aimed at tackling the root causes of the current problems. I welcome the firm action already taken in this respect, including the decision to protect depositors and other creditors in Turkish banks. The comprehensive package of strengthened policies should provide the basis for restoring confidence and sustaining...