Managing Director of the International Monetary Fund (IMF) Horst Köhler has expressed satisfaction with Turkey’s decision to sign the new Letter of Intent for the fourth economic performance review under the three-year stand by credit arrangement. He called for a more even rephrasing of disbursements for remainder of the program.
"This Letter sets out strong policy commitments in all key areas of the economic program, including a 6.5 percent of GNP primary surplus for 2003 and beyond, a set of measures to strengthen the underpinnings of the fiscal accounts, strengthening the independence of the Bank Regulation and Supervision Agency (BRSA), reducing redundant positions in state enterprises, and advancing privatization,” said Köhler.
"Full implementation of these commitments will contribute to a stable macroeconomic environment and bring about fundamental structural reform, thereby helping the government achieve its goals of disinflation, debt reduction, and lasting rapid growth. The focus of the program thus remains very much on strengthening long-term performance and growth prospects.”
“The revised Letter of Intent calls for purchases of about $700 million on the occasion of the Fourth Review and of about $500 million at each of the remaining seven reviews. This is a courageous step that speaks directly to concerns about the authorities' determination to implement the policies spelled out in the Letter over the 20 months remaining under the program.
According to Köhler, the Letter of Intent will now be forwarded to the IMF Executive Board. The prior actions needed to complete the Fourth Review have already been completed. A meeting of the Board to consider the authorities' request for completion of the Fourth Review has been scheduled for April 18. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
