ANKARA - Turkish State Minister Ali Babacan said on Sunday, ``Turkey`s relations with the International Monetary Fund (IMF) have reached a perfect level.``
In an interview with the A.A, Babacan said, ``some developments have occurred since the latest review. IMF officials expressed their concerns on two certain issues. One of them is reduction in value-added tax in textiles. We held detailed consultations with highest level IMF officials to this end. The second issue is the law which was approved by the Turkish parliament last week. The law includes some arrangements about salaries of civil servants.``
Referring to nomination of new governor of the Central Bank, Babacan said, ``the Council of Ministers is authorized to nominate a new candidate. Then, we will submit the name of our candidate to the Presidential Office for approval.``
``The basic policies of the Central Bank such as exchange rate regime, capital movement freedom and price stability will not be changed,`` he said.
Upon a question about relations with the EU, Babacan said, ``de facto negotiations have started with the EU after the negotiation position document was sent to the European Commission last week. The screening process will be completed on October 13th, 2006.``