Turkish State Minister Ali Babacan announced Thursday that Türkiye had finalized a financial and public sector reform package with the World Bank, which approved a second and final disbursement of 500 million dollars. The announcement came at a joint press conference in Ankara with Finance Minister Kemal Unakitan.
Babacan said negotiations on a follow-up reform package are already underway, covering public spending management, social security, and social solidarity. The first tranche of that new package, also valued at 500 million dollars, is expected in July.
The minister described Türkiye's banking sector as the strongest it has ever been, noting it holds the highest capital adequacy ratio among OECD member states. He added that previously troubled public banks are now generating profits returned to the budget.
On broader economic targets, Babacan acknowledged that 2006 inflation may slightly exceed the official goal due to global market volatility, but said targets of 4 percent for 2007 and 2008 remain unchanged. The ratio of net public debt to gross national product fell from 78 percent to 55.8 percent between 2002 and 2005. IMF reviews are expected to be finalized at a board meeting in July.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.