Turkey completed its talks with the International Monetary Fund on the final review of the country’s $10 billion standby deal and an agreement has been reached on a draft letter of intent, the Turkish Treasury said on Monday.
The short statement said it expects the IMF executive board to meet in early May and release nearly $3.7 billion loan to Turkey. Turkey’s parliament is still discussing a long-delayed social security reform, sought by the IMF for approval of the final review, raising retirement ages. An IMF team came to Turkey on April 4 for talks with the Turkish authorities.
Ankara will soon decide what kind of a follow-up deal it will pursue with the IMF but Economy Minister Mehmet Simsek ruled out a new standby deal, saying the government might sign a precautionary standby deal with the global lender. The current, three-year standby deal expires in May. Turkey still owes $6.43 billion debt to the IMF, making it one of the largest recipient of the Fund’s credit. (Reuters)