IMF releases $1.4 billion credit in support of Turkey's economic program

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Page 62

On February 5, the IMF announced in a news brief that the Executive Board had approved the fifth review of Turkey's economic program. The full text of News Brief No. 01/13 is available on the IMF's website (www.imf.org).

The economic program is supported by a three-year IMF Stand-By credit, and the Executive Board decision will enable Turkey to draw up to SDR 1.1 billion (about $1.4 billion) immediately.

The Stand-By credit was approved in December 1999 for SDR 2.9 billion (about $3.8 billion) (see Press Release 99/66).

On December 22, 2000, the Board decided to provide additional resources available under the Supplemental Reserve Facility for SDR 5.8 billion (about $7.6 billion) to alleviate balance of payments difficulties (see Press Release 00/80).

Of the total amount of SDR 8.7 billion (about $11.4 billion) under the Stand-By credit, Turkey has so far drawn SDR 2.84 billion (about $3.7 billion).

Commenting on the Executive Board discussion, IMF Managing Director Horst Köhler said that "policy implementation since the last Executive Board meeting has been most encouraging. In particular, the central bank has strictly implemented the monetary policy framework laid out in its December 2000 Letter of Intent, and important actions in the structural area have been implemented during January.

"On monetary policy, the Central Bank of Turkey has successfully mopped up most of the excess domestic credit created during the crisis, thus helping to restore market confidence, as evidenced by the reduction in interest rates and the increase in foreign...