On February 4, the IMF Executive Board approved a new three-year, $16 billion loan to help support the Turkish government’s economic program for 2002–04. This new loan package is the largest one the IMF has extended to date.
The Board’s decision will enable Turkey to draw $9 billion from the IMF immediately. The new loan with Turkey replaces the previous stand-by credit, which was approved in December 1999 and amounted to a total of $19 billion. Total disbursements to Turkey under the previous loan package came to $15 billion. The remaining undisbursed $4 billion was folded into the new arrangement and is included in the total amount.
After the Executive Board discussion on Turkey, IMF Managing Director Horst Köhler said: “Today’s decision is a recognition by the international community of Turkey’s success in developing and implementing a bold and comprehensive economic reform program. Progress is impressive, and the authorities are committed to doing what is necessary for the country’s economic and financial recovery through continued steadfast policy implementation. The IMF continues to support Turkey in its truly “owned” program.”
For further details, please see the full text of IMF Press Release 02/7, February 4, which is available on the IMF’s website (www.imf.org).