Moghadam stressed that the agreement would be submitted to the approval of first the administration of IMF, and then the Board of Executive Directors.
Moghadam said that the policies of the Central Bank, which are strong and have high credibility, might pave the way for lower rates of inflation than expected. Moghadam drew attention to the fact that interest rates fell to a great extent, when compared to the last review.
Moghadam said that they concentrated especially on three policies. He said; the first one is to attain 6.5% primary surplus target in the 2003 budget. We agreed on the measures that should be taken to materialize this target in 2003 and 2004. We expect that a budget on this agreement will be forwarded to Parliament this week. Other expectations of IMF are enhancing the influence of the Banking Regulating Board (BDDK) and issuing the Law on Public Financial Administration.