DEBT OF TURKEY News update on the country debt situation, by East-West Debt

Turkey to draw $1.15 billion immediately. The stand-by credit was approved in February this year in a total amount of about $17 billion. So far, Turkey has drawn $11 billion.

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East-West Debt oct. 2002 news, update : TURKEY

We are pleased to present another issue of East-West Debt news update on the debt situation in the world. International events influence the solutions for solving overdue trade and bank debts. East-West Debt can offer our readers attractive financial solutions for solving non-performing trade and bank debts ...

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Turkey The International Monetary Fund completed the second review of Turkey's economic performance under the three-year stand-by credit and decided to enable Turkey to draw $1.15 billion immediately. The stand-by credit was approved in February this year in a total amount of about $17 billion. So far, Turkey has drawn $11 billion.

The decision of the IMF was possible for several reasons.

Firstly, fiscal policy of Turkey has remained on course. The recent decisions to halt price increases in state economic enterprises are a strong signal of the change in fiscal policy of Turkey.
This, however, should be reinforced with reforms in direct taxes, a carefully managed reduction of redundant staff in state economic enterprises, and improved tax administration and procurement procedures.

Secondly, the Central Bank of Turkey (CBT) has followed a cautious monetary policy. Its contribution to reduce inflation and inflation expectations is a further major achievement. This should now be strengthened by advancing with the technical preparations for inflation targeting. The central bank should continue its policy of gradually building up its foreign exchange reserves. The authorities should also move further to reduce tax distortions in financial markets.

Thirdly, structural reforms in banking and in the public sector have been impressive. Yet, during the period ahead, greater attention needs to be devoted to structural reform, especially privatization. In the light of the inefficiencies in state enterprises and the burden they place on the budget, the authorities should intensify their efforts to privatize these enterprises. The recent presentation to parliament of a new Foreign Direct Investment Law is an important step in improving the business environment and supporting the privatization efforts. For all these efforts to be fully successful, a high priority will be to provide reassurance to markets about economic, financial, and political stability of Turkey.

ALGERIA ARGENTINA BRAZIL EGYPT
INDONESIA IRAN IRAQ JORDAN NIGERIA PAKISTAN TURKEY UKRAINE URUGUAY VIETNAM

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