On December 22, the IMF approved a three-year Stand-By credit for about $4 billion (SDR 2.9 billion) for Turkey in support of the government’s economic program for 2000-2002. The first installment of about $300 million (SDR 221.7 million) is to be made available immediately.
Describing the IMF Executive Board’s discussion, IMF First Deputy Managing Director Stanley Fischer praised Turkey’s program, calling it “strong and well balanced,” designed to free the country from the high inflation that has plagued the economy for two decades, restore macroeconomic fundamentals, and address long-standing structural weaknesses.
The government’s program rests on three pillars: up-front fiscal adjustment, structural reform, and a firm exchange rate commitment supported by consistent income policies. In 2000, real GNP growth is expected to be 5-5½ percent, while inflation is projected at 25 percent, compared with about 65 percent in 1999.
Turkey joined the IMF on March 11, 1947, and its quota is SDR 964.0 million (about $1.3 billion). Its outstanding use of IMF financing currently totals SDR 437 million (about $599 million).
Details of the program are included in the government’s Letter of Intent, as well as in Press Release No. 99/66, both of which are available on the IMF’s website (www.imf.org).