The Turkish government and the IMF recently announced that they have called off prolonged talks over an anticipated stand-by deal. Observers argue Turkey is no longer considering a stand-by deal with the fund.
Speaking at the 4th Annual Turkey Trade and Export Finance Conference, Çimenoğlu said the Treasury will opt to meet a fresh need for cash by borrowing money from banks in the domestic market since an infusion of money by the IMF will most likely not happen.
Emphasizing that the adverse impact of 2009’s global financial turmoil still haunts markets, Çimenoğlu said Turkey will find it harder to attract liquidity from international sources than during the pre-crisis period. “We could notice a nascent recovery in the markets; however, the crisis is not completely over. It will take some two years before we will be able to leave problems in economy brought about by the 2009 crisis behind.” As regards this year’s projections for the Turkish economy, he said there is a slight increase in domestic demand but that the picture is still bleak when it comes to new investments and employment.
World Bank Turkey Chief Economist Mark Roland Thomas said they expect the Turkish economy to grow by an average of 4.3 percent during the next five years. “We believe this will be a realistic estimation for sustainable growth in the Turkish economy,” he told the conference. Recalling that the country’s economy enjoyed higher than average growth rates prior to the 2009 crisis, he said the Turkish market was badly hit by the credit crunch last year.
