"After the removal of some disagreements on remaining issues talks will resume at one point," Simsek told reporters. He said the government did not favor delaying a deal with the IMF until after municipal elections in March.

"There is no tendency (in the government) to postpone the deal until after local elections," Simsek was quoted as saying by Reuters. He declined to give details on the size of any possible IMF loan or the duration of an agreement.

Government sources told hurriyet.com.tr that the talks will continue during the Davos meetings. "Talks between Turkey and IMF have halted but it does not mean they are ended. The talks will continue during the Davos meetings," a source said.

An IMF team has been in Ankara since Jan. 8 for talks on a loan deal to help Turkey weather the global financial crisis. A previous three-year $10 billion standby loan deal expired in May.

The IMF team is about to leave Turkey soon, government sources told Reuters.

The new agreement is expected to be for 18-24 months including a financial support of 20-25 billion dollars.

CONTRADICTING STATEMENTS

Simsek’s remarks contradicted with the earlier statement made by the Treasurary.

Simsek said earlier on Monday that the Turkish government and the International Monetary Fund (IMF) have reached an overall agreement on several of the content of the new deal held between January 8 and 26.

Turkey and the IMF would continue talks within the scope of  program to finalize works for some mid-term and long-term structural reforms, he has added in a written statement.