Hot sectors in a tepid recovery
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Turkey-standby loan deal with IMF is not finalized
WASHINGTON, Oct 13 (Reuters) - Turkey is discussing a precautionary standby deal with the International Monetary Fund but a final agreement has not been reached, a government official said.
"Discussions with the fund are ongoing but a deal is not done yet," Turkish minister of state for economic affairs, Mehmet Simsek, said at a press conference in Washington. "I appreciate the markets' desire for an anchor to the crisis with such a deal but in fact Turkey's banking and financial system are sound."
A $10 billion three-year loan program with the IMF expired in May and Turkey is currently deciding what kind of follow-up agreement should be made.
Turkish business leaders and economists want a precautionary standby deal with the IMF, which will enable the country to access IMF cash, as the country's markets are hit by the global financial turmoil. An IMF team is scheduled to visit Turkey starting next week, the minister said.
"No one is immune to this crisis, but years of homework and fiscal discipline have brought us today to a much better position to face this challenge," Simsek said. "Those policies are helping cushion Turkey."
Simsek also added Turkey will keep its commitment to fiscal discipline amid the global markets turmoil as the 2009 budget start being drafted.
"The crisis is a challenge, but it is not a reason for the country to overspend and deviate from its previous commitment to discipline," he said. (Editing by Neil Stempleman)
