News Brief: Köhler Proposes US$10 Billion IMF Support for Turkey

December 6, 2000

IMF Managing Director Horst Köhler said today:

"I welcome today’s announcement by Prime Minister Bulent 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 growth in the Turkish economy.

"This program deserves strong international support and, therefore, I will ask the IMF’s Executive Board to provide credits amounting to a total of more than US$10 billion. This will consist of an amount equivalent to about US$7.5 billion (SDR 5,784 million) under the Supplemental Reserve Facility and the approximately US$ 2.9 billion (SDR 2,227 million) still available to Turkey under its current stand-by arrangement."


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