Press Release: IMF Staff Statement on Discussions Beginning September 16 on a New IMF Stand-By Arrangement for Turkey

September 13, 2004

The following statement was issued today in Ankara by Hugh Bredenkamp, the IMF Senior Resident Representative in Turkey:

"An IMF mission, headed by Mr. Reza Moghadam, will visit Turkey from September 16 to 29, to initiate discussions on a new Stand-By Arrangement for Turkey. It is envisaged that the discussions will resume in October, following the Annual Meetings of the IMF and World Bank.

"The Turkish authorities are preparing their economic program for
2005-07, and the mission will discuss with them the objectives and policy content of this program, for which the new Stand-By Arrangement would provide financial support. Among the important issues under discussion will be the government's medium-term debt reduction strategy, and the implications for the 2005 budget. The authorities' plans for a further reduction in inflation are also expected to feature in the discussions.

"The mission will also discuss the government's priorities for structural and institutional reform over the next three years, focusing on the policies that will be needed to sustain and broaden the economic recovery, and to reduce unemployment. These discussions are expected to encompass reforms that will underpin the fiscal strategy, such as social security reform, a streamlining of the tax regime, and reform of the tax administration and public financial management. They will also address the next phase of reforms in the financial sector, the privatization strategy, and structural reforms aimed at improving the environment for investment and job creation in Turkey."


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