Turkish State Minister Ali Babacan announced Thursday that Türkiye had finalized a financial and public sector structural reform package with the World Bank. The institution's executive directors approved the deal and authorized release of the second and final tranche, worth 500 million US dollars, the same day.
Babacan, speaking alongside Finance Minister Kemal Unakitan, said negotiations on a follow-up package are already underway. The new program will address public spending management, social security, and social solidarity, with a first tranche of 500 million dollars expected in July.
The minister described Türkiye's banking sector as the strongest in its history, noting it holds the highest capital-adequacy ratio among OECD member countries. He added that formerly troubled public banks are now generating budget revenue rather than draining it.
On inflation, Babacan acknowledged that 2006 figures might exceed the target due to global market volatility, but said targets of 4 percent for both 2007 and 2008 remain unchanged. He also reported that the ratio of net public debt to gross national product fell from 78 percent to 55.8 percent between 2002 and 2005.
The Third Investment Advisory Council was scheduled to meet on 29 June. Foreign direct investment reached 9.7 billion dollars in 2005, and Babacan expressed confidence that figure would grow in coming years.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.