No IMF fund included in Turkey's 2009 budget - economy minister
Güncelleme Tarihi:
Turkey did not presume it would sign a loan accord with the International Monetary Fund (IMF) when it drew up its 2009 financing programme, Economy Minister Mehmet Simsek said in a television interview on Friday.
Turkish banks have limited need for foreign funding, Simsek told Turkish CNBC-e broadcaster from the World Economic Forum in Davos.
The IMF and Turkey this week halted talks for 10 days on a loan pact that was expected to be worth as much as $25 billion after failing to resolve differences on structural reform.  Â
"Turkey needs a programme with or without the IMF ... The crisis will continue to affect Turkey even if we have an IMF-backed programme," Simsek said.
Turkish business leaders and investors urgently want a stand-by agreement to stabilise the $700 billion economy which has seen a sharp slowdown in growth. The previous $10 billion accord expired in May.
The IMF has been pushing for tighter fiscal policy and a higher primary surplus while the government has wanted to use IMF money to stimulate economic growth.
"We want a programme which suits Turkey's dynamics and which will lessen concerns over short-term external financing requirement," Simsek said.
"We see an IMF programme as insurance against uncertainty," he said, adding that he had the impression that disagreements with the IMF were solveable.