Turkey plans to sign $10 bln IMF stand-by deal in January- report

The Turkish government has kicked off the process for a precautionary stand-by agreement with the IMF, which will include a loan of at least $10 billion, CNNTurk reported.

 

The Turkish government wants the new deal to be launched in January, and the first post-monitoring by the IMF delegation to be held in April, a date following country's local elections, in order to avert fund's possible restrictions blocking excessive government spending ahead of the local elections, the report also said.

 

Turkey has been holding talks with the IMF for a potential precautionary stand-by loan to partly address market worries, however the government recently reiterated that it would not sign a deal unless it was flexible.

 

Prime Minister Tayyip Erdogan earlier stated that a deal with IMF was not necessary and that the government would not accept harsh agreement terms, saying that only a flexible deal would be considered.

 

Turkey's previous $10 billion IMF stand-by deal -- which stipulated conditions related to loans -- expired in May

 

The ruling government instructed bureaucrats to determine the amount of the loan that can be obtained from the IMF and to start the technical preparations, the report said citing unnamed official sources.

 

Business leaders had called on the government to secure another loan deal to help limit the fallout from the global financial crisis that has already forced Ukraine, Iceland and Hungary to seek IMF help.