Speaking to reporters following his meeting with his Lebanese counterpart, Saad Hariri, in Ankara, Erdoğan stated that the government and the fund have extensively discussed a possible stand-by deal. “I am also waiting to be informed by government officials who are involved in the talks with the IMF. I think we will reach a deal in a week.” Following Erdoğan’s statements, the US dollar lost value against the Turkish lira, with one dollar retreating to TL 1.44 from TL 1.45.
In recent comments on the issue, officials from the government have separately stated that a deal could be sealed with the fund in the near future, creating expectations in the market. As early as last Tuesday, triggered by IMF expectations, the İstanbul Stock Exchange (İMKB) reached 54,115 points, the highest level in the past two years.
Following a “successfully completed” 20th stand-by deal with the fund in May 2008, the government commenced talks concerning a new agreement in January 2009. Turkey suspended talks with the fund, saying the fund had failed to meet its demands. Remaining unresolved until after the local elections of March 29, talks began again at the G-20 meeting.
