Speaking on a television program yesterday, Babacan noted that the negotiations between the fund and Turkey were continuing and that if an agreement were reached, it would be made known to the public. He added that he did not want to create expectations by releasing any details before they come to an agreement.
Babacan stated that although small issues have arisen during the talks, many of the larger hurdles have been cleared. He added that the IMF had dropped several conditions that they had attached to a possible stand-by deal.
Speaking on the IMF’s outlook on the government’s Medium Term Program, Babacan said that the IMF approved of the program after the government sent the general framework to the fund, adding that the fund found the program appropriate and supported it. After the details of the Medium Term Program were sent to the IMF, Babacan said, the negotiations continued via the Internet. “We have arrived at an agreement with the IMF over the two-year length of a possible stand-by deal. We want a deal that ends with the end of 2011, so that we can re-evaluate our situation at that time,” Babacan said, noting that if an agreement is reached, the funds would be transferred to the central bank as reserves.
Babacan also reviewed Turkey’s performance in 2009, noting that it would be seen as a “lost year” when looking back. Turkey was much better prepared for the global economic crisis than many developed nations, as it made the necessary reforms long before the onset of the crisis, he added.
