Press Release No. 04/122

Press Release: IMF Staff Statement on the Discussions of the Eighth Review Under Turkey's Stand-By Arrangement

June 22, 2004

The following statement was issued today in Ankara by Odd Per Brekk, the IMF Senior Resident Representative in Turkey:

"The IMF team headed by Reza Moghadam, that has held discussions since June 3 aimed at completing the eighth review under Turkey's Stand-By Arrangement, concluded its visit to Turkey today. Besides discussions with government and central bank representatives, the team also met with private sector representatives, labor unions, financial institutions, and academics.

"The review discussions focused on the implementation of Turkey's economic agenda for 2004. The authorities and the mission reached agreements ad referendum on the actions needed to facilitate IMF Executive Board consideration of the review and on the broad elements of a draft Letter of Intent. These agreements are subject to review and approval by the Management and Executive Board of the IMF.

"In addition to a broad macroeconomic assessment, key topics of discussion included progress towards the targeted 6½ percent of GNP public sector primary surplus, public sector reforms, the new Banks Act aimed at alignment with EU standards, Saving Deposit and Insurance Fund (SDIF) asset recovery, state bank restructuring, and privatization.

"Provided that the agreed steps are implemented as envisaged, it is expected that the IMF Executive Board will meet to consider the completion of the eighth program review, together with the conclusion of the 2004 Article IV consultation, before its August recess."