DUBAI - Turkey and the United States signed the agreement granting 8.5 billion U.S. dollars of loan to Turkey in Dubai on Monday.
State Minister Ali Babacan and U.S. Treasury Secretary John Snow signed the agreement.
Snow who addressed the signing ceremony of the agreement said that the loan did not depend on dispatch of soldiers to Iraq and added that those were different issues.
According to the agreement, the loan which will be used in repayment of domestic and external debts of Turkey will not be repaid for 4 years and its maturity will be 10 years.
The loan will be used in four equal tranches in about 18 months. Receiving every tranche of the loan will depend on Turkey's meeting conditions determined in the concerned law of the United States.
One of those conditions is that Turkey will have to follow sound economic policies and the other is that Turkey will be in cooperation on Iraq issue with the United States.
BABACAN: AGREEMENT ON USD 8.5 BILLION OF LOAN SHOWS FRIENDSHIP BETWEEN TURKEY AND UNITED STATES
State Minister Ali Babacan said on Monday that the agreement on 8.5 billion U.S. dollars of loan which was signed between Turkey and the United States was ''a very important indicator'' of powerful friendship between the two countries.
Babacan said that this agreement also pointed to long-term confidence in Turkish economy.
Turkey and the United States signed the agreement granting 8.5 billion U.S. dollars of loan to Turkey in Dubai on Monday.
State Minister Ali Babacan and U.S. Treasury Secretary John Snow signed the agreement.
Addressing the signing ceremony, Babacan said that Turkey and the United States were two friendly countries and stated that there was powerful economic, political and military cooperation between the two countries.
Babacan said that the agreement would make important contribution to reform program which Turkey implemented and added that Turkey's implementing economic program with determination started to yield positive results.
Snow said that the loan and the issue of dispatch of Turkish soldiers to Iraq were two different issues.
Snow who clarified the condition of ''Turkey's being in cooperation in Iraq issue with the United States'' mentioned in the agreement stressed that it did not mean that Turkish soldiers would contribute to peace force and stability operations in Iraq.
U.S. Treasury Secretary Snow stated that the loan aimed to support economic program which was continuing in Turkey and decrease possible negative effects of Iraq war.
Stating that Turkey was one of the most effective partners and an ally in global fight against terrorism of the United States in this geography, Snow said that Turkey was also serving as a valuable model in Islamic world with its powerful economy and stable democracy.
Noting that Turkey's continuing economic stability and economic and political reform process coincided with the interests of the United States, Snow said that the U.S. loan aimed to strengthen Turkey's economic policies.
Stating that Turkish economy overcame 2001 economic crisis and recorded great progress, Snow said that Turkish economy recorded a sound growth in one and a half years and inflation rate also decreased significantly.
Snow said that powerful economic growth developed life standard of Turkish people and decreased poverty.
Snow added that U.S. Departments of State and Defense would have a role on determining whether Turkey met conditions or not.
(EÖ-AÖ) 22.09.2003