News Brief

IMF Management Approves Letter of Intent
for Turkey's Stand-By Arrangement

Michael Deppler, Director of the European I Department of the International Monetary Fund (IMF), announced today that IMF Management has received a Letter of Intent submitted by the Turkish authorities, describing their macroeconomic and structural reform program and requesting a three-year Stand-By Arrangement in the amount of approximately US$4 billion. IMF Management has approved the letter and has forwarded it to the Executive Board for consideration. Turkey's program and the request for IMF support are expected to be considered by the Executive Board on either December 21 or December 22.

Today's announcement by the Central Bank of Turkey of a predetermined exchange rate path, as well as a supporting monetary framework, is a key component of the authorities' disinflation program. The new monetary and exchange rate arrangement will facilitate the decline of inflation and interest rates.