Turkey will adhere to an International Monetary Fund austerity program despite uncertainties in the world economy following the September 11 attacks in the United States, Turkish Economy Minister Kemal Dervis said in Washington Monday, October 1.
"This is an important time because we are going to submit the budget to the parliament on the 17th of October," Dervis told a press conference. "Of course the tragic events of September 11th have changed some variables and we have to factor that in the discussions" with IMF officials. "The world economy has become more uncertain, interest rates on emerging markets have risen, there may be some negative effects on tourism."
The IMF has pledged assistance to Turkey in the amount of $19 billion on condition that Ankara implement an economic austerity program aimed at restoring market stability following a financial crisis that erupted in the early part of the year.
Dervis stressed that his talks here were not aimed at renegotiating the IMF package. "The timing of the discussions is very important. We have to make sure that the target we announced is credible and consistent."
He said Turkish authorities were for the moment working with macroeconomic data that held out the possibility of a solid performance next year. But he would not say if they would seek additional aid from international financial institutions.
Dervis added that the Turkish economy was likely to contract 7.5 to eight percent this year, with the US attacks having a short-term impact of between 0.5 and one percent of gross domestic product in 2002.
The minister met here Monday with US Treasury Secretary Paul O'Neill and was later in the week to confer with IMF Managing Director Horst Koehler and World Bank President James Wolfensohn. He is scheduled to return to Ankara on Friday. ― (AFP, Washington)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
