TURKEY IMF TO CONCLUDE TALKS WITHIN THIS WEEK

Turkey and the International Monetary Fund will conclude their talks on a stand-by deal on Monday or some time this week, Prime Minister Recep Tayyip Erdoğan said Monday, according to broadcaster CNNTürk.

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Tarih  Tarih : 11.01.2010

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Turkey and the International Monetary Fund will conclude their talks on a stand-by deal on Monday or some time this week, Prime Minister Recep Tayyip Erdoğan said Monday, according to broadcaster CNNTürk.

Turkey’s government has resisted borrowing more money from the IMF as Erdoğan balked at IMF demands for spending restraint, even as the global crisis plunged the economy into deep recession.

Goldman Sachs Group Inc. on Monday said Turkey was unlikely to agree to new loans from the IMF because the country’s $2 billion bond sale last week shows the government is able to raise the funds it needs from investors, Bloomberg reported Monday.

The political cost of tying economic policy to IMF demands would outweigh the financial advantages for Erdoğan as he starts his campaign for re-election next year, Ahmet Akarlı, a London-based economist at Goldman Sachs, said in a telephone interview with Bloomberg.

“It’s hard to see why Erdoğan would be willing to delegate some of his policy making powers over to the IMF in the context of a stand-by agreement, as the 2011 general elections draw closer,” he said.

SOURCE: HURRIYETDAILYNEWS
January 11, 2010




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